DATA#3 MORPHS AND RETURNS TO PROFIT

DATA#3 Limited (ASX: DTL) has shown a return to profit growth through a period of strategic shift.

NPAT for the technology solutions company was up 39.2 per cent from the prior corresponding period to $3.6 million.

Managing director John Grant (pictured) says the business of 1000 employees and contractors has been transitioning to service-centric, which has been met with positive response.

"We have a significant product business which performed very well in the half," says Grant.

"We are also seeing early evidence of our strategic shift to an increasingly service-centric business in the company's return to growth over the past six months.

"Overall, this solid first half result underpins our full year guidance to improve on last year's net profit before tax of $10.9 million."

CEO Laurence Baynham says consumers are taking well to the company's shift, as they are choosing to consume and pay for technically through more of a service model, as opposed to purchasing product.

"With the changes we're seeing in the way our customers are choosing to consume and pay for technology, our strategic shift from primarily product centric to increasingly service centric is the right strategy to underpin sustainable growth in long term shareholder returns," says Baynham.

"At the same time, we are very mindful of optimising our performance in the second half and achieving our full year guidance to improve on FY14's net profit before tax of $10.9 million.

"Data#3's first half performance and a pipeline that continues to build puts us in a strong position to achieve that goal."

Staff costs and operating expenses increased over the period, largely due to the need to "support the sales focused plan in line with increases in the broader market", as well as professional fees and other investment and acquisition related costs.

DTL has delivered an interim dividend of 2.1c per share to be paid on March 31, an increase of 40 per cent from the prior corresponding period.