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However, whilst the first half results were disappointing, the strengthened management team has refined and validated our strategic direction and we have moved into the execution phase, extending our core product offerings into new channels and growth areas. In parallel, we are restructuring and repositioning the business to achieve better sales execution and maximise future potential.
The primary objectives of these initiatives are to evolve Macro 4 into a market leader in those functional areas where our core competencies will deliver greatest sustainable growth. Alongside the existing product lines, we are additionally focusing on the new operational challenges facing the IT functions today, building a unique, comprehensive solution set to optimise performance of our customer's IT systems across their key pressure points, areas such as the end-user application experience, energy efficiency, virtual systems and load testing.
On the document management side, through further product development, a stronger sales organisation and increased use of our Professional Services skills, we are improving our relationships with channel partners to help them evolve their offering in line with the demands of those markets. We believe that this will bring Macro 4 significant benefit and growth potential.
Operationally we continue to manage costs tightly, but we have invested in additional sales and marketing resource. We have increased our market awareness activities through a number of key industry events and conducted innovative lead generation campaigns with excellent results. The Macro 4 brand and image has been successfully redesigned, modernised and strengthened to better position the Company for the new markets we will be targeting. Feedback on the rebranding is universally positive.
Looking specifically at each of our product areas.
Progress with our printing and data warehousing products has been twofold. We have improved our channel-based approach in working with the major Managed Print Outsourcers and are able to offer them strategic as well as operational benefits. We are poised to launch several innovative new solutions into this market and will shortly be announcing major product extensions to our document archiving solution (Columbus DW). This will considerably broaden its appeal and extend usage, for both existing customers and potential new customers in adjacent markets.
In the Applications Performance side if the business, we added several important new customers and are confident that the continuing investment in sales and marketing will show results in the second half. This area is core to the ongoing development and growth of the business.
The acquisitions of ExpeTune and ExpeTune DB last year are starting to deliver revenue and our A.P.P. product is gathering momentum. We expect to gain a number of reference customers for this product over the remainder of the year.
Finally, the IBM OEM relationship has continued to perform well and, with new product releases forthcoming, we see this progress continuing.
The competitive and economic environment remains our major risk. We need to be agile and quick to react in this shifting landscape. In this, we are much better positioned now than previously. I am confident that our restructuring, the investment in sales, product development, rebranding and other marketing activities will deliver substantial returns to the business and that new opportunities will arise as we further execute on our strategic vision and plan.
Ronnie Wilson
Group Chief Executive Officer
28 February 2008
Interim Results - Further Details |
