NetComm Limited (NTC), a leading provider of broadband hardware solutions, today announced a profit of $14,000 for the half year period ended June 30, 2007. The improved performance resulted from tight cost controls and an increased gross margin driven by a change in product mix a shift towards higher value, higher margin products for the small and medium business sector which began in 2006.

One-off costs incurred in the first half resulted in a full year loss of $1.3 million. These costs included investments in the restructuring of subsidiary Dynalink New Zealand, clearance of a range of products that no longer fitted with the companys evolving business, and development costs for new Voice over IP (VoIP) products.

NetComm Limited (NTC), a leading provider of broadband hardware solutions, today announced a profit of $14,000 for the half year period ended June 30, 2007. The improved performance resulted from tight cost controls and an increased gross margin driven by a change in product mix a shift towards higher value, higher margin products for the small and medium business sector which began in 2006.

One-off costs incurred in the first half resulted in a full year loss of $1.3 million. These costs included investments in the restructuring of subsidiary Dynalink New Zealand, clearance of a range of products that no longer fitted with the companys evolving business, and development costs for new Voice over IP (VoIP) products.

The second half result is heartening because it is the first indicator of the success of the Companys return on its investment in higher-value product lines for new markets, said Managing Director David Stewart. It also reflects the strengthened operations of Dynalink New Zealand that is now contributing to gross profits following its acquisition and restructuring.

New revenue streams will come online in the first quarter of fiscal 2008 when a range of innovative Next G, 3G and Broadband Wireless products will be released to market in Australia and New Zealand. These products will meet the rapidly evolving demand for an alternative to ADSL Networks particularly in rural and urban areas not well serviced by existing broadband networks.

The Board of Directors and Management of NetComm Limited are optimistic about demand for these new product lines, and confident that costs can be kept under control as sales increase. The Company expects to continue profit improvement initiatives begun in fiscal 2007 leading to full year profitability in the 2007/2008 year, said David Stewar heartening because it is the first indicator of the success of the Companys return on its investment in higher-value product lines for new markets, said Managing Director David Stewart. It also reflects the strengthened operations of Dynalink New Zealand that is now contributing to gross profits following its acquisition and restructuring.

New revenue streams will come online in the first quarter of fiscal 2008 when a range of innovative Next G, 3G and Broadband Wireless products will be released to market in Australia and New Zealand. These products will meet the rapidly evolving demand for an alternative to ADSL Networks particularly in rural and urban areas not well serviced by existing broadband networks. The Board of Directors and Management of NetComm Limited are optimistic about demand for these new product lines, and confident that costs can be kept under control as sales increase. The Company expects to continue profit improvement initiatives begun in fiscal 2007 leading to full year profitability in the 2007/2008 year, said David Stewart.