Synergon Q1 Earnings Down 7%.
Hungarian IT services company Synergon Informatika Rt has reported a first quarter pre-tax profit down 7% at the equivalent of $471,000 on revenue that rose 64% to $11.57m. Synergon, which floated on the Budapest stock exchange Budapest Stock Exchange
Established in 1864, the major securities market of Hungary. on May 5, while its Global Depository Receipts Global Depository Receipt
A receipt denoting ownership of foreign-based corporation stock shares which are traded in numerous capital markets around the world. debuted two weeks earlier in London (CI No 3,649), blamed interest charges and foreign exchange losses for downturn Downturn
The transition point between a rising, expanding economy to a falling, contracting one.
A decline in security prices or economic activity following a period of rising or stable prices or activity. in its pre-tax profit.
Operating profit Operating profit (or loss)
Revenue from a firm's regular activities less costs and expenses and before income deductions.
See operating income. actually increased 91% in the first quarter, reaching $733,000, but the negative impact of the added cost of interest on loans resulted in expenses of $267,000 through March this year, compared to additional income of $120,000 in the same period in 1998. Synergon said the increased costs were the result of a higher need for short-term loans, which it attributed to "the higher working capital requirement due to longer contracts" as well as higher sales activity. It added that it intends to use part of the funds raised by the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. (approximately $20m), to retire part of its debt, thereby reducing its interest costs in the coming months. Figures converted at 225 forints to the dollar..