UXC transformation hangover wears off

Summary:UXC said yesterday at the release of its half-year results to 31 December 2011 that it expects its transformation "hangover" to dissipate this half year, letting the company fire on all cylinders.

UXC said yesterday at the release of its half-year results to 31 December 2011 that it expects its transformation "hangover" to dissipate this half year, letting the company fire on all cylinders.

The company decided to go back to its roots as a pure IT company in 2010, last year divesting itself of assets for a sale price of $61 million. The company spent $550,000 on consulting and $750 million on infrastructure to enable the transformation.

The transformation had "caused distraction" for affected businesses, according to the company, which delayed the delivery of targets.

The half year to 31 December 2011 did, however, see it increase its revenues for the operations it hasn't divested by 6 per cent to $256 million and the net profit after tax for those operations increase by 198 per cent to $4.8 million.

Now it is conducting cost reduction and efficiency initiatives, with the hope of achieving $10 million in reductions. UXC said that the cost-cutting measures, including cutting staff, were already in place.

UXC's customer base consists of 30 per cent government, 20 per cent consumer goods and services, 13 per cent capital goods and commercial services, 11 per cent energy and utilities, with the last 25 or so per cent made up by resources, IT and communications and financial services.

ASG Group also reported its half-year results to 31 December 2011 yesterday.

It achieved revenues of $76.04 million and net profit after tax of $7.19 million, up 2.7 per cent and 18 per cent, respectively, on the prior corresponding period.

The company said that the half year had been tough, with clients holding back on new projects and capital expenditure.

Its new datacentre opened this half year and it had scored "one of the world's largest mining companies" as a tenant. The migration of the company would be completed at the end of the second half of the financial year, at which point ASG Group said it would have 10 to 15 per cent capacity left for future strategic managed services.

It said that mining, government and commercial sectors were taking up its infrastructure and application-as-a-service offerings, while the financial services sector was adopting its platform-as-a-service product.

It intended to use its domestic hosting advantage to win cloud business from multinational companies.

Topics: Outsourcing

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Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for t... Full Bio

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