ASX 200 tech stock Data#3 Limited (ASX: DTL) is floundering on Thursday, down 10.79% to $8.73.
The drop follows the release of the business technology solutions company's 1H FY24 report.
It was only two days ago that the ASX 200 tech stock reached a new record high share price of $10.01.
Today, it is the biggest faller of the ASX 200.
Let's take a look at the report.
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ASX 200 tech stock tumbles on Thursday
Here are the highlights for the six months ended 31 December 2023:
- Gross sales up 13.4% to $1.3 billion
- Statutory revenue up 11.1% to $450.1 million
- Net profit before tax up 25.3% to $30.8 million
- Net profit after tax (NPAT) up 25.5% to $21.4 million
- Basic earnings per share (EPS) up 25.5% to 13.85 cents per share
- Interim dividend up 26% to 12.6 cents per share, fully franked, and payable 28 March
What did Data#3 management say?
CEO Laurence Baynham said:
The record result reflects good contributions across most of our business units and regions, with company Gross Sales growth over double industry growth rates.
Our Services and Software Solutions businesses performed ahead of expectations, with 67% of Gross Sales now recurring.
Although our Infrastructure Solutions business was up on the prior period, it was impacted by customers previously ordering in advance of requirements, in response to pandemic related supply chain issues.
This slowed down ordering and decision making in the current period. Improved supply chain conditions reduced our stock levels, and our diligent management of working capital enabled us to benefit from increased interest income of $6.5 million.
What's next for Data#3?
Baynham said the company expected digital transformation and artificial intelligence to play a key role in Australia's economic future.
The company did not offer full-year FY24 guidance but said its goal was to deliver sustainable earnings growth.
Baynham will retire from his role after 30 years with the company on 1 March. He is undertaking a four-month transition process to ensure a smooth handing over of the reins to new CEO Brad Colledge.
ASX 200 tech stock price snapshot
The #Data3 share price is up 17.7% over the past 12 months.
By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 3.4% over the same period.
