[LINK] ENTITY1 mourns NT government loss
Wed, 28 Mar 2001 08:40:31 +1000
Agree, Bernard - but anybody who builds an entire business case on one
customer is rash, to say the least.
From: Bernard Robertson-Dunn [mailto:firstname.lastname@example.org]
Sent: Tuesday, 27 March 2001 15:28
Subject: [LINK] ENTITY1 mourns NT government loss
Isn't government IT outsourcing a good thing? I particularly like the way
it helps samll Australian IT companies
ENTITY1 mourns NT government loss
By Byron Connolly, Computer Reseller News
Tuesday March 27, 2001
The future of listed IT services outfit eNTITY1 appears grim after the
company failed to secure a multi-million dollar desktop outsourcing
contract with the Northern Territory government.
The company was betting on a win with the NT government last year when it
raised $5 million through an IPO with a view to playing a major role in NT
But the contract that eNTITY1 had punted on winning was scooped up last
week by CSC.
As a result, eNTITY1 will not meet its projected revenue and "profit will
not be achievable in the short to medium term on the basis of lack of
success in the NTG outsourcing program," a company statement said.
The company projected EBITDA of $1.1 million and a profit of $958,000 for
its financial year ending June 30, 2001, expecting EBITDA of $4.7 million
and a profit of $3.2 million for the 2002 financial year.
The eNTITY1 board said it was "extremely disappointed" with the outcome of
the NTG outsourcing process to date. "eNTITY1 made a large investment in
terms of funds, time and other resources to enable it to participate in the
NTG outsourcing program," a statement said. ENTITY1's board of directors
opened fire at the NT government saying the company has been "effectively
locked out of the Territory's desktop support marketplace, which will be
dominated by a US multinational.
The company said it would conduct a review of its business plan and provide
revised financial projections. It currently has $4 million in cash and will
resize its NT operations and streamline its management team. ENTITY1 CEO
John Gardiner has quit and the company said it intends to pursue merger and
Despite its failure to secure the NT desktop deal, eNTITY1 does have
existing projects with lawyers Clayton Utz, The South Pacific Family
Planning and Regional Development Project, NT University and The Australian
Department of Workplace Relations, according to its website.
ENTITY1 shares were steady at 10 cents in early afternoon trading.
It is unwise to be too sure on one's wisdom.