Hungarian IT company Synergon's fourth-quarter net profit fell 32% to HUF 207 million from the same period a year earlier as revenue dropped at a faster rate than costs, the company's consolidated IFRS report for the period published early Tuesday shows.
Revenue dropped 12% to HUF 5.467 billion, but costs fell just 6% to HUF 3.560 billion, causing operating profit to plunge 56% to HUF 288 million. The company's operating margin was halved to 5%.
Synergon's bottom line was helped by a small financial gain of HUF 11 million, compared to a financial loss of HUF 227 million in Q4 2008.
Synergon CEO Mark Lazarovits said Synergon's performance in Q4 “fell short of our expectations due to the lingering economic crisis and the approaching parliamentary elections”.
About 38% of Synergon's full-year revenue came from public sector orders.
For the full year, Synergon booked net profit of HUF 256 million, a big improvement over a loss of HUF 1.1 billion in 2008. Revenue was down 1% at HUF 17.717 billion, but costs fell a steeper 5% to HUF 11.499 billion, lifting operating profit by a factor of eight to HUF 523 million. Financial losses narrowed sharply to HUF 8 million from HUF 1.016 billion.
Synergon had total assets of HUF 10.114 billion on December 31, 2009, down 4% from twelve months earlier. Net assets rose 1% to HUF 5.258 billion. (MTI-Econews)