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Synergon has loss on costs to shut regional operations division

Synergon Nyrt, the Hungarian computer-services company whose shares are the country's best performers the past 12 months, said it had a loss in the Q4 because of costs to shut down a division.

The Budapest-based company's loss was Ft 627.5 million ($3.2 million) in the quarter ended December 31, compared with a restated profit of Ft 358.3 million a year ago, Synergon said in a statement to the Budapest Stock Exchange today. Sales fell 1% to Ft 7 billion. The company, which installs Hewlett-Packard Co. and Microsoft Corp. products, has units in Croatia and the Czech Republic in addition to operations in Hungary. The cost of shutting down Synergon's regional operations resulted in 80% of the annual loss in the Q4 alone. „One-off items significantly determined operational costs in the period,” the company said in its earnings report. „The buildup and teardown of Synergon group's 2006 regional activity can be considered a one-time item.” The company last year established and then later eliminated a division to oversee its regional activities. Synergon shares have gained 120% in the past 12 months, compared with a 5.4% gain in Hungary's benchmark BUX Index. (Bloomberg)