Singapore 8 September 2001 – Listed electronics firm IPC Corp, which recently completed a massive debt restructuring programme, is back in the black with an interim net profit of $4.1 million.

The result, revealed yesterday, is a reversal of a $31.5 million net loss in first-half 2000 - and IPC expects to remain profitable for the full year. No interim dividend has been declared.

IPC made an operating profit for the six months ended June, contributed by subsidiaries, and booked a $6.7 million exceptional gain. This resulted from the final settlement of disputed claims at a lower amount than previously provided for.

But while the firm earned 19 cents a share, compared with a loss of 2.54 cents a share a year earlier, turnover tumbled 73.5 per cent to $2.7 million from $10.3 million previously.

The net tangible asset backing per share was 6.42, up from minus 6.81 cents a year earlier.

"The decrease in turnover is in line with the group’s thin computing product strategy, by changing from a combined integrated hardware and software solution to a software offering, which significantly reduces the average selling price per licence or seat," IPC said yesterday.

It said this strategy allows it to eliminate obsolete stock and it no longer needs to use cash to procure hardware to support its sales. Sales of thin client licences grew during the first half.

For the second half, IPC said it will continue to enhance its software offerings and distribution network and will develop its broadband systems integration and e-services businesses.

It also expects to launch and market a residential and commercial property project in China.