Electronic Data Processing Plc’s Univision object-based database management system is finally to market after hold-ups because of compiler and Unix difficulties and the thick-end of its marketing costs have come through in the first half figures which saw pre-tax profit down 12% to #2.1m on turnover that was also down by 2% to #7.2m for […]
Electronic Data Processing Plc’s Univision object-based database management system is finally to market after hold-ups because of compiler and Unix difficulties and the thick-end of its marketing costs have come through in the first half figures which saw pre-tax profit down 12% to #2.1m on turnover that was also down by 2% to #7.2m for the six months to March 31. The diversifying Sheffield-based Pick-popper and software publisher and services firm says that it does not expect any profit contribution from the product in the current year but that the returns will show in the coming two to three years. It is aiming for a 25% share of the object database management market in the next 12 months and has spent a total of #3.5m on development so far. During the next six months Electronic Data plans to release a Univision version for the IBM Corp RS/6000 and Sun Microsystems Inc hardware environments. Research and development is also being put into adding future functions including SQL and Open Data Base Connectivity. It says that total research and development spend will be #1.5m this year, although most of the spending on Univision is now completed. The turnover figure was affected by a sum given for the termination of two contracts, which chairman Michael Heller said were not significant in terms of profit, but he could not elaborate because of the confidentiality agreement attached to them. The company says that despite the fall in turnover and profits, the underlying business is good and that its policy of not capitalising research and development costs, particulary of the Univision product affected the profit figure. Recurring revenues are running at #7.7m per annum and come from software licensing fees including those from the Merchant software product for the wholesale distribution industry. Cash balances at March 31 were #12.6m, up from #11.2m last time, but interest receivable for the six months was down #49,000 on last time to #251,000 as a result of the fall in interest rates. Electronic Data is looking to acquire software businesses that fit with its area of business expertese in the wholesale sector but it is not prepared to buy disparate businesses or to pay over the odds for them. Earnings per share fell 15% to 5.1 pence per share and the dividend is held at 0.667 pence.
