Strong Aussie dollar hits local IT exporter

in brief Online services company, Melbourne IT, issued a market update late last night, informing stakeholders that its second half/full year results may be tarnished by the strong performance of the Australian dollar against foreign currencies.

(Bar Graph image by Kevinzhengli, CC2.0)

According to Melbourne IT, half of its revenues are generated from markets outside of Australia, meaning that the strengthening position of the US dollar and the euro has forced the company to reassess its profit margin.

"Management projects that 2010 full year operating profits may be 5-10 per cent lower than the 2009 profit," the company said in a statement.

Despite the financial setbacks, however, Melbourne IT intends to forge on in its cloud roll-out to New Zealand, with the first site on track for deployment at the conclusion of the first trading half of next year.