In November 2005 and February 2006, NetComm Limited (ASX:NTC) advised the market that during the 2005/2006 financial year, the company would be investing in a progressive repositioning of its products into high value business products and solutions aimed at the small to medium business market to reduce its current exposure to low value, low margin commodity broadband products.

In November 2005 and February 2006, NetComm Limited (ASX:NTC) advised the market that during the 2005/2006 financial year, the company would be investing in a progressive repositioning of its products into high value business products and solutions aimed at the small to medium business market to reduce its current exposure to low value, low margin commodity broadband products.

As previously forecast, the Directors are pleased to confirm that the core business of NetComm Limited has traded profitably for the second half of the current financial year. However, after taking into account the restructuring and merger integration costs of the recently acquired operations of Askey Australia and Dynalink New Zealand, the consolidated forecasts to June 30, 2006 indicate that NetComm is likely to post a net loss of approximately $700,000 (about 1 cent per share).

NetComms new business solutions, aimed at the small to medium business market with higher average selling prices and margins, will be released in June 2006, with healthy orders forecast for the next 12 months, said David Stewart, NetComms Managing Director.

Approvals for NetComm products for the New Zealand market are also proceeding, with the first approval having just been granted. The company expects to have a broad range of its products available to be launched in the New Zealand market in July, 2006, he said.

The Board and Management of NetComm remain confident that the companys re-positioning strategy is sound and necessary to ensure growth in shareholder returns and value. 

While some delays have impacted our current full year profitability, we believe that the company is well-positioned for further growth in both revenue and profitability in fiscal 2006, said David Stewart.