Eftel's DSLAM write-down results in AU$2.08M loss

Eftel's DSLAM write-down results in AU$2.08M loss

Summary: Eftel's decision to write down its DSLAM equipment saw the company report a loss of AU$2.08 million for the last financial year.

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TOPICS: Telcos, Australia
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Australian telecommunications wholesaler Eftel has bounced back a bit from its half-year results, but the company's increased revenues for the 2011-12 financial year were not enough to recover from the write-down of the company's BroadbandNext DSLAM network equipment.

The broadband wholesaler reported late on Friday that it experienced a massive jump in revenues from AU$29.2 million in the 2010-11 financial year to AU$58 million in the 2011-12 financial year. But an AU$3.9 million write-down of the BroadbandNext DSLAM equipment at the end of 2011 had led to the company reporting an overall loss for the year of AU$2.08 million.

At the time, the board decided to write down the equipment as being "impaired."

The jump in revenues came following the acquisition of retail broadband company ClubTelco and Platform Networks. In June, Eftel also acquired West Australian Networks, and in August the company bought Visage Telecom for AU$450,000.

Eftel CEO Scott Stavretis said that the company is in a good position to continue growth."We have been able to grow in all three of our market segments, being consumer, corporate, and wholesale, whilst paying off debt and integrating our acquired businesses," he said in a statement. "This has positioned us well to continue our growth strategy over the coming years, while ensuring the company has a stable platform for ongoing organic growth."

Topics: Telcos, Australia

About

Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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4 comments
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  • Waiting...

    For Turnbull to complain that this is the NBN's fault.
    meski.oz@...
  • VDSL?

    Was EFTEL the one that was going to do VDSL but never quite brought it to market?
    LexLutherKryptonite
  • Eftel well done!

    Congratulations Eftel!

    Here is one company that really does add value to the customer ... right now!

    I'm a very happy ClubTelco customer @ $40/mth unlimited ADSL2+ highest speed ... thank-you very much. If you want a $25 credit when you sign up then just quote referrer a friend code (7712500 drmegabyte). If you port your mobile or take up their VOIP or home phone offer you can get upto another 10% off your monthly bill! ... now where else can you get that sort of deal?

    Looks like Eftels business plans are coming together ... if you have some $$$ to invest, I'd take my chance on this one, it could make your broadband deal that little bit more of a reward.

    From memory the shareholders are made up of dodo and clubtelco stakeholders ... have to check the website ... anyways i'll be staying with them whilst they offer great value for money.

    drmegabyte
    mark231
  • Worth investing

    Even the loss of AU$2.08M loss didn't influence on company's service. They managed to get throught this and the company is in a good position according to its CEO. That is a great success. This company worth investment for sure. It even worth turning to cash lenders , as the profit will cover all the expenses
    http://cashadvancesus.com/
    KateLA