DataDot Technology Ltd. : Half Year Result and Management Reorganisation

DataDot Technology Limited ABN 54 091 908 726 Securities Exchange Announcement

16th January 2012

Half Year Result and Management Reorganisation

Half Year Result

The Directors of DataDot Technology Limited (ASX:DDT) announce that, subject to audit review, revenues for the first half of the 2011/2012 financial year will be approximately $3.3 million, in line with the immediately prior half year revenues of
$3.3 million but down against the corresponding prior half year revenues of $4.1 million, reflecting flat trading conditions throughout calendar year 2011.
Earnings will be a loss of approximately $1.1 million, in line with the immediately prior half year loss of $1.1 million, but down against the corresponding prior half year earnings of an adjusted loss of $70,000 (which excludes the $552,000 one-off adjustment for the revaluation of DataDot Technology Limited's investment in DataTrace DNA Pty Limited).
These results are due primarily to slower than anticipated rebuilding of the DataDot Technology Limited auto business as it recovers from the impact of natural disasters in Asia Pacific (in the past quarter, there has also been an unexpected rationing of Japanese motor vehicles delivered into our key customers in Asia Pacific and USA which has also impacted results this half) and economic uncertainty in Europe, particularly in Italy, our largest market.
Shareholders have been aware that better financial performance in the short term has been largely dependent on an improvement in the trading conditions in Europe, particularly Italy. It has been disappointing that this improvement did not materialise during this half year but the situation appears to at least have stabilised and has the potential to improve in the 2nd half. Further, with growth being experienced in the DataTrace DNA Pty Limited business, continuing build of forward orders from key auto customers and revenues expected from new business identified in the quarterly update announcement in October 2011, we currently expect the second half of this financial year to be profitable and the business to return to positive cash generation.
The company held cash holding of approximately $2.3 million at 31 December 2011 and no capital raising is currently contemplated during 2012.
The Directors will release the company's half year results on or about 22nd February
2012.

Resignation of CEO

Mr. Ben Bootle the Managing Director and CEO, has advised the Board of his resignation and is moving on to pursue other interests. Ben has contributed materially to the development of the company over the last 3 years and is leaving with the Board's gratitude and best wishes for success in his future endeavours.

Management Reorganisation

A number of talented executives have joined the company over the last 12 months and the Board believes that it is now appropriate to reorganise the management structure to better develop this talent.
Mr Bruce Rathie, the Chairman of the Board, will assume an executive role working with and through an Executive Committee which he will chair comprising Mr Ross Hawkey (CFO, Administration and Manufacturing), Mr Gunther Schmidt (DataTraceDNA), Mr Ritchie Bloomfield (DataDotDNA/International), Mr Graham Loughlin (Strategy/Secretarial) and Mr Neil Mulcahy (AgTechnix). Mr Rathie's executive role can be terminated by either party on 30 days notice. Appointment of a new CEO will be reviewed by the Board during the course of calendar 2012.
Mr Rathie states "We are a small Australian company operating in 22 countries and must work effectively through joint ventures and distributors to be successful. Having a flatter management structure, at least in the short term, will fully utilise the considerable management talent we already have and through them, our partners capabilities around the world. The Board must also ensure the company returns to profitability both through cost constraint and reductions where possible and revenue growth in the short term. This is the highest priority for the company."

Contact Information:

DataDot Technology Limited Bruce Rathie, Chairman Phone: 02 - 89774900

e-mail: [e-mail] web site: www.datadotdna.com