S&T System Integration & Technology Distribution AG, the Vienna, Austria-based company that has become a major IT services operator in central and eastern Europe, says that its revenue and margin for the six months to June 30 lags significantly behind its business expectations.
The company says that during the second quarter it noticed the first signs of recovery of the depressed economic climate for IT solutions in its target markets. However, this is not yet reflected in revenues. There was also no contribution from its operations in Yugoslavia due to the embargo after the start of NATO military operations.
Pre-tax profit in the three months to June 30 was 413,000 euros ($436,700), up from a loss of 178,000 euros ($188,000) on revenue that increased 9.3% to 7.1m euros ($7.5m). However, S&T’s management believes that its recent $13.1m acquisition of the Ljubljana, Slovenia-based Hermes Group (CI No 3,686) and the contribution from newly entered markets will put S&T back on the track of success.
