By PETER GRIFFIN
Listed IT company Provenco dipped $6.4 million into the red in the year to June 30.
Provenco, which changed its name from Advantage Group after Palmerston North-based Advantage Computers successfully asserted its right to the name, had turnover of $47 million, down from $61.8 million in the previous year
when it turned a profit of $4.5 million.
But managing director Tony Bradley expressed satisfaction with Provenco's operating profit of $1 million. Selling payment terminals and back-office software to petroleum retailers internationally accounts for around 30 per cent of Provenco's revenue.
Bradley said the oil companies generally invested in new technology as a group and hard times were limiting spending on technology upgrades.
Much of Provenco's $6.6 million in writedowns was related to the "G5" product line which sells to the oil companies. But Bradley said Provenco was committed to the market.
US-based competitor Radiant Systems, which also supplies terminals to petroleum retailers, lost US$35.8 million in the three months to June 30 after incurring writedowns totalling US$32.5 million.
Bradley said the rest of Provenco's business, which includes eftpos terminal sales, mobile computing, software and services, were performing well. Provenco shares closed down 1c at 28c per share.
