Commander Communications Limited (ASX: CDR) is beginning to show signs of recovering four months into a turnaround plan designed to reverse the company's ill fortunes.
The company had posted a negative cash flow of over $118 million in the last six months of 2007.
But after the turnaround, the business is back in the black, posting a net gain of over $5.5 million in the 5 months leading up to the 31st of May this year.
The board expects to post a profit this year, but has warned shareholders that year-end profits will not be as high as was predicted in January.
Commander still expects a net profit of between $4.5 and $7 million dollars, but this is at least $1.8 million lower than the previous $8.8 million profit forecast.
Commander has blamed the industry-wide rapid decline in sales of stand-alone hardware products for this shortfall.