{"id":60529,"date":"2014-06-13T15:40:44","date_gmt":"2014-06-13T13:40:44","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=60529"},"modified":"2014-06-13T15:40:44","modified_gmt":"2014-06-13T13:40:44","slug":"convergenet-losses-accelerate","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/it-services\/60529\/convergenet-losses-accelerate\/","title":{"rendered":"ConvergeNet losses accelerate"},"content":{"rendered":"<p>ICT infrastructure supplier <a title=\"ConvergeNet\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/2402-ConvergeNet-Holdings\">ConvergeNet<\/a> has reported an operating loss of R48.2 million for the half year ended February 2014 from a prior loss of R22.2 million.<\/p>\n<p>Revenue from continuing operations declined to R119 million, from R132 million in 2013.<\/p>\n<p>The group reported a headline loss for the period of 23.90 cents per share, from a prior loss per share of 1.89 cents.<\/p>\n<p>ConvergeNet distributes and resells an extensive range of industry products including cabling, networking, telecommunication, VoIP, servers and storage, infrastructure management and data center products.<\/p>\n<p>The group said that the interim period was characterised by difficult trading conditions, especially within the DC Power and System Integration divisions of CK Solutions.<\/p>\n<p>An impairment charge of R34.8 million was recognized in respect of goodwill attributable to CK Solutions.<\/p>\n<p>&#8220;The loss of a key battery supply tender and the cessation of the mobile build program of a major client resulted in a significant earnings gap versus budget, which is expected to persist during the medium term.<\/p>\n<p>&#8220;Unless trading conditions improve further impairment of the investment in CK Solutions is likely in the medium term,&#8221; ConvergeNet said.<\/p>\n<p>Looking ahead, it said that its board of directors is carefully considering the options that are available to address the continued under-performance of the group.<\/p>\n<p>&#8220;The high cost-base and the difficult trading conditions experienced by its remaining subsidiaries during the period under review are expected to continue into the next financial year.&#8221;<\/p>\n<h3 class=\"my-4\">More on ConvergeNet<\/h3>\n<p><a title=\"ConvergeNet to shed jobs amid massive restructure\" href=\"http:\/\/businesstech.co.za\/news\/it-services\/43147\/convergenet-to-shed-jobs-amid-massive-restructure\/\"><strong>ConvergeNet to shed jobs amid massive restructure<\/strong><\/a><\/p>\n<p><a title=\"ConvergeNet mired in red\" href=\"http:\/\/businesstech.co.za\/news\/it-services\/36734\/convergenet-mired-in-red\/\"><strong>ConvergeNet mired in red<\/strong><\/a><\/p>\n<p><a title=\"ConvergeNet updates on expected earnings\" href=\"http:\/\/businesstech.co.za\/news\/it-services\/36095\/convergenet-updates-on-expected-earnings\/\"><strong>ConvergeNet updates on expected earnings\u00a0<\/strong><\/a><\/p>\n<p><a title=\"ConvergeNet sees extended loss\" href=\"http:\/\/businesstech.co.za\/news\/it-services\/35129\/convergenet-sees-extended-loss\/\"><strong>ConvergeNet sees extended loss<\/strong><\/a><\/p>\n<p><a title=\"ConvergeNet swings to a loss\" href=\"http:\/\/businesstech.co.za\/news\/it-services\/27205\/convergenet-swings-to-a-loss\/\"><strong>ConvergeNet swings to a loss<\/strong><\/a><\/p>\n<p><a title=\"ConvergeNet anticipates big earnings fall\" href=\"http:\/\/businesstech.co.za\/news\/it-services\/26921\/convergenet-anticipates-big-earnings-fall\/\"><strong>ConvergeNet anticipates big earnings fall<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ICT infrastructure supplier, ConvergeNet, has reported an operating loss of R48.2 million for the half year ended February 2014 from a prior loss of R22.2 million.<\/p>\n","protected":false},"author":10,"featured_media":27208,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[25,1670],"class_list":["post-60529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-it-services","tag-active","tag-convergenet"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/60529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=60529"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/60529\/revisions"}],"predecessor-version":[{"id":60543,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/60529\/revisions\/60543"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/27208"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=60529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=60529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=60529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}