Cadmus Technology has signaled a major change in strategic direction alongside the announcement of financial results, which a saw a $4 million dip in profits.
The company’s sales revenue for the 12 months ended 30 June was $25.4 million compared to $25.7 million last year, while earnings before interest, taxation and depreciation of abnormals was $3.2 million, down from $7 million last year. A net loss of earnings of $4.5 million was reported after tax and abnormal items, including restructuring costs and costs related to acquisition activity.
New chief executive officer Julian Beavis says as a consequence of these results, a major restructuring began including changes to the Cadmus’ board of directors and senior management. Beavis is a former Teradata Australasia vice president.
Board changes have included Navman founder Peter Maire being appointed as chairman and taking a 19.9 percent shareholding.
Former Wang CEO Anthony Howard and ex-Navman CEO Jim Doyle have been appointed as directors.
Beavis says the challenge is to move beyond the manufacture and sale of eftpos devices towards higher-value payment solutions.
“We’re largely known as a manufacturer and exporter of pin pads. But pin pads are going down, not up in price so there is a need to sell more things.”
He says the company’s focus has shifted from hardware to software with integrated payment solutions.
The company is already working on a number of customer-initiated projects representing vertical-market payment solutions.
“We want to look at payment solutions through customers’ eyes to see what they want. We’re working with a company in Australia called Oncue that does bill payments and [we are] providing more sophisticated software to it.”
Beavis says in the past Cadmus has been trying to be all things to all people.
“Now we are consolidating, so we can be one of the best payment solution providers in a tight market.”
The company has doubled its research and development staff numbers during the second half of the year, with 22 engineers now employed, plus two research and development teams under contract and further R&D recruitment underway.