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Synergon targets full-year revenue of HUF 20 billion

Hungarian IT company Synergon expects to close 2009 with consolidated revenue of about HUF 20 billion and an operating margin of 6%, CEO Mark Lázárovits said at a press conference on Wednesday, a day after Synergon published its second-quarter report.

Synergon expects significant growth in the fourth quarter, Lázárovits said. Synergon had revenue of HUF 17.9 billion in 2008, according to the company's audited report.

Synergon's first-half consolidated revenue rose 26% to HUF 8.4 billion from the same period a year earlier. The company booked after-tax profit of HUF 42 million compared to a loss of more than HUF 1 billion in H1 2008. Operating profit was HUF 250 million, a HUF 600 million improvement over the same period a year earlier.

Revenue from services generated 73% of the total in the first half, compared to 47% in the same period a year earlier as more companies and state institutions outsourced the operation of their IT systems. Synergon managed to achieve revenue growth and saw its profits improved in the first half even though sales opportunities were fewer and competition grew, Lázárovits said. Companies in the financial and industrial sectors are putting off IT investments, which is expected to cause the market to contract 3.5% this year, he added.

Next year, the market is expected to grow 1%, and analysts see it expanding 4.5% in 2011.

Synergon will continue to strive for cost efficiency and try to win EU-supported tenders. It sees opportunities in the transport, environmental protection, health and water management segments, Lázárovits said. (MTI-Econews)