Computerland looks on the bright side

In the first half of this year, Computerland incurred a net loss of zł.14.8 million, but the company's management remains upbeat. "We are forecasting net profit to reach zł.20 million at the end of the year," says company CEO Michał Danielewski. This means that Computerland's net income should almost double, compared to 2005's net profit of zł.11.4 million.

Danielewski explains that the loss is partly due to the firm's restructuring, which cost about zł.7 million. Computerland has been implementing a cost-cutting program called Colorado, which has seen 200 employees laid off, the reform of the sales system, and - perhaps most importantly - the list of clients slashed from 700 to 200.  "We want to focus on the most promising customers," stresses Danielewski. Thanks to the program, within the next two years the company should increase its gross profit by zł.50 million.

In the meantime, H2 revenues from sales will rise, since the company should benefit from the increased number of orders in the public, utilities and health sector. Danielewski mentions the pressure to spend EU funds and the fact that a substantial part of them is allocated for IT. However, according to the company's management, the future is even brighter for Computerland due to its  planned merger with another WSE-listed IT firm, Emax.

 "Together with Emax, we will be the biggest software-producing group in this country," Danielewski stresses. Currently, the market value of Computerland amounts to about zł.676 million, while Emax is worth some zł.403 million.