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Synergon end H1 in the red

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Hungarian IT company Synergon Informatika expects its full-year operating profit to reach Ft 1 billion, CEO Márk Lazarovits said, after the company posted losses for H1.

Synergon reported a first-half operating loss of Ft 411 million.

Economic growth is expected to pick up significantly in the second half of the year, which should positively affect revenue and profit, Lazarovits said. At the same time, Synergon will reduce operating costs, though without any drastic staff cuts, he added.

Public sector orders usually generate about one-quarter of Synergon's revenue, but cutbacks in state spending have reduced the proportion this year to only about 5%. The drop meant about a Ft 1 billion revenue shortfall in H1, Lazarovits said.

Answering a question about a big financial loss the company booked in H1, Lazarovits said the loss was related to a treasury share option. It made the option at a price of Ft 1,950 at the end of 2007, when the share was trading at 1,788. Now the shares are trading well under 1,000. (MTI – Econews)

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