DataMotion shrinks FY11 loss

Data security company DataMotion (ASX:DMN) reduced its FY11 loss to $953k, as cost reduction efforts made up for an unsuccessful mining investment

Data security solutions company DataMotion Asia-Pacific (ASX:DMN) narrowed its FY11 net loss by 36 per cent as a result of strict cost-cutting efforts.

The company posted a net loss for the year of $953,000, compared to a $1.5 million loss a year earlier.

Sales revenue declined 20.8 per cent to $111,000 over the same period, but revenue from ordinary activities increased by 55 per cent.

In the company's annual report, non-executive chairman Michael Robson said the company had managed to slash expenses through initiatives including the sale and relocation of its data centre and administrative offices. Net consolidated expenses fell 50 per cent during FY11.

Perth-based DataMotion concentrates on providing online data backup and recovery systems and services, generating transaction, storage and licensing revenues.

DataMotion also made investments in resource projects during the year, through wholly owned subsidiary Universal Rare Earths.

The bottom line was impacted by impairment charges of around $600,000 resulting from the decision not to proceed with a mining joint venture project. This had followed a negative sample assessment at the planned site.

DMN shares have been trading at $0.001 since the disclosure of the assessment results in June.

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