Italian network computing systems distributor Algol SpA has reported a first quarter net loss of 458,000 euros ($478,000) on revenue that was down 5.3% at 16.1m euros ($16.8m). This compared to a net profit of 299,000 euros ($312,000) last year.
At the pre-tax level, the Milan-based company reported a loss of 460,000 euros ($480,100), compared to a pre-tax profit of 567,000 euros ($597,800) in the same period last year.
Algol, which is quoted on the Brussels hi-tech stock exchange Easdaq, attributed its move into the red in part to increased operating expenses, which were up 11.7% at 11.9m euros ($12.4m) due to investments in human resources. There was also a sharp decline in product gross margin, and as an additional 290,000 euros ($302,800) in net financial expenses due to a currency exchange loss.
On a brighter note, Algol recalled that it had taken a minority shareholding, in April, in a new Italian internet service provider, World Online Italia SpA, in association with the Dutch ISP World Online International BV, for which it will also be providing the networking infrastructure.
