Datong: bargain country?

The designer and manufacturer of advanced high performance intelligence gathering equipment, which was previously embroiled in a patent infringement claim relating to a 3rd party product for which DATONG acted as a reseller, announced its interim results for the six months ended 30 September 2009. Thankfully the outlook appears a lot rosier!

Revenue increased 86% to £2.81m with the operating loss for the period £1.32m (2008: £1.67m).There was a record order intake in the period, up 234% to £4.91m and the confirmed order book was up to £2.32m at the period end (2008: £0.28m).Datong finished the half year with net cash of £1.7m (2008: £1.7m)Since the patent restrictions were lifted sales of Third Party products resumed. The group has secured significant contract wins in new markets since the year end with orders of £2.86m (2008: £2.06m) being received in October and November.  Management commented that the market in Americas has continued to perform below expectations largely due to customer budget constraints but they are maintaining a positive outlook for the longer term opportunities within the region. DATONG is a leading supplier of advanced location based intelligence gathering equipment to military, security and law enforcement agencies around the world. Net assets at the half year end were £9.3m with tangible net assets approx £6.7m including cash of £1.7m. The market value is currently £4.8m. Bargain country?