IDI
IDI
Idion Technology Holdings Limited - Trading Statement
IDION Technology Holdings Limited
("IDION" of "The Group")
(Incorporated in the Republic of South Africa)
(Registration number 1998/013846/06)
ISIN: ZAE000022513
Share Code: IDI
IDION Technology Holdings Limited - Trading Statement
In terms of the Listings Requirements of the JSE Limited ("JSE Listings
Requirements") a listed company is required to publish a trading statement as
soon as it becomes apparent that the financial results for the next period to be
reported on are expected, with a reasonable degree of certainty, to differ by at
least 20% from those of the previous corresponding period.
In compliance with the JSE Listings Requirements, IDION"s shareholders are
advised that the Group"s headline earnings per share for the year ended 31
December 2005 are expected to be between 0,5 US cent and 0,7 US cent compared to
the Group"s headline earnings of 1,3 US cent in the comparative period in 2004.
The Group"s earnings per share for the period ended 31 December 2005 are
expected to be between 0,5 US cent and 0,7 US cent compared to the Group"s loss
per share of 0,8 US cent in the comparative period in 2004.
The decline in headline earnings per share from a comparative perspective is a
direct result of several planned strategic investment initiatives taken during
the year, as previously communicated to the market in the Company"s annual
report released during March 2005. These investments were primarily focused on
increased sales and marketing initiatives and accelerated new product
development activities as well as integration costs associated with the
acquisition of OS Solutions which was acquired effective 1 April 2005. These
investments are expected to enhance the Group"s future strategic position as a
leader in the IBM eServer high availability market. The board is satisfied with
the status of the investment plan and early successes during the latter part of
2005. This positions the Group well for 2006.
The increase in earnings per share from a comparative perspective is primarily
the result of the adoption of International Financial Reporting Standard 3-
Business Combinations ("IFRS 3") as of 1 January 2005. As a result, the Group
ceased the amortisation of its goodwill in the current year in accordance with
the provisions of IFRS 3, which favourably impacted current year earnings per
share.
The information contained herein has not been reviewed and reported on by
IDION"s auditors. Further details will be provided when IDION"s results for the
year ended 31 December 2005 are released on or about 22 March 2006.
13 March 2006
Sponsor: PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 13/03/2006 12:53:43 PM Produced by the JSE SENS Department
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