ONE1 Technologies says it will not hand out Dividends for Second Straight Quarter
Revenue climbs by 3%, CEO said limited exposure to worst-harmed industries softened the blow
17:1024.05.20
Software company One1 Technologies announced its financial results for the first quarter of 2020 on Sunday, announcing for the second quarter in a row that it will not distribute a dividend due to the effects of the coronavirus (Covid-19).
The company’s revenue climbed 3.1% over the first quarter of 2019 to NIS 431.5 million (approximately $120 million). Its profit is up 2.5%, reaching NIS 18.7 ($530). Most of the revenue came from its software and consulting services, which rose by 10.5% to NIS 253.7 million ($70 million).
The rest of the company's revenues stemmed from computing infrastructure services and stood at NIS 182.2 million, falling from NIS 193.1 million the same quarter last year. The company said the slight decline was due to delays in customer supply, which it attributed to the coronavirus crisis.
The company announced that it would not distribute a dividend for first-quarter profits due to the uncertainty created by the pandemic, similar to its decision for the fourth quarter of 2019. The company added that at the end of March, roughly 11% of its employees had been placed on unpaid leave and that 5.5% of the team remained on leave at the time of the report’s publication.
“Like all companies, we experienced the impact of the crisis in March, and without the crisis we would have presented better results,” Adi Eyal, CEO of One Technologies told Calcalist. “Our exposure to the industries that experienced the most harm from the pandemic was relatively small and that played out in our favor, as did our broad distribution across various sectors of the economy.”
