Solution 6 still running at a loss

Troubled local accounting software company Solution 6 has surprised few by reporting an operating loss of $79.5 million for the 1999/2000 financial year.

The losses follow a year of acquisition hunting and bad publicity stemming from the past of the company's ex-CEO Chris Tyler.

The company recorded a net profit of $3.2 million for the previous financial year.

In a statement issued today, the company attributed $67.5 million of its losses to "abnormal" expenses from restructuring and redundancy, research and development, ASP (application service provider) and web portal development, as well as the write-off of previously capitalised SSDN (software, systems and distribution networks).

Despite running an overall operating loss, 1999/2000 saw Solution 6 increasing its revenues by over $100 million, representing revenue growth of 142 per cent.

According to the statement, the company acquired 11 business software, consulting and e-commerce platform companies during the fiscal year. The acquisitions included online legal information provider Lawpoint for $40 million and accounting software group CMS/Data for $46 million.

Solution 6's acquisition and integration drive shows no signs of slowing soon, with the company starting the new financial year with a bid to buy New Zealand-based e-business software developer exo-net for $30 million.

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