Oakton is one of the few listed IT companies that has managed to withstand the industry downturn. However, it wasn't able to weather the negative sentiment towards the sector and in 2000Ð01 its share price slid from $1.50 to 80 cents. Between 1998 and 2002, OKN delivered back-to-back revenue and earnings growth. In 2003 earnings per share fell from nine to 7.5 cents. Its loss-making products division that has now been divested spoilt the overall performance.
OKN's competitive advantage lies in its established client base and proven ability to design, build, implement and operate IT solutions. OKN's end-to-end service offering sets it apart from many other players in the IT industry. Management anticipates a good year in fiscal 2004 and their confidence is shared by equities research firm Lodge Partners, which predicts strong profit growth out to financial year 2005 driven by recent acquisitions, organic growth and increased spending in the IT services industry.
OKN Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
