Picture: ISTOCK
Picture: ISTOCK

Technology company Ansys is feeling the effects of the slow economy, with customers’ spending cutbacks eating into its full-year revenue and profit.

Revenue of R572.6m in the year to end-March was down 29% from a year ago. Net profit halved to R33.424m, from R67.751m.

Ansys also blamed an exceptional foreign currency gain in the previous year for the decline.

This year’s forex gain was a much smaller R7.8m, from R17.4m before, according to the results statement released on Wednesday.

Ansys, which has recently rebranded to Etion, provides technology solutions in the rail, mining and industrial sectors, as well defence and cyber security systems, and telecommunications systems.

The company has reorganised its portfolio, with mining, industrial, defence and cyber security now falling under one division known as original design manufacturing (ODM).

Rail is now known as safety and productivity, while telecommunication is now digital network.

"The decline in financial performance can be attributed mainly to budget revisions by key customers in response to adverse macroeconomic factors," the company said in the results statement.

ODM revenue declined to R229.1m from R276.9m, with the company saying trading conditions remained challenging and certain customers either reassessed or rescheduled their orders.

But profit still rose 40.5% to R31.5m.

Safety and productivity swung to a loss of R4.2m, from profit of R5.5m.

Profit in digital network plummeted to R27.6m from R82.2m as a result of a slowdown in the rollout of fibre-to-the-home by some of the network operators.

Headline earnings per share dropped 50% to 7.27c and no dividend was declared.

The share was price was flat in early trade at 50c on the JSE, valuing the company at R247.2m.