Cognition Holdings Limited Announces Restatement of Financial Results for the Six Months Ended December 31, 2014; Provides Earnings Guidance for the Six Months Ended December 31, 2015
For the six months ended December 31, 2015. The company expects basic earnings per share (EPS) is expected to be between 5.58 cents and 6.52 cents, reflecting a decrease of between 30% and 40% compared to the restated EPS of 9.31 cents for the six months ended 31 December 2014; and the headline earnings per share (HEPS) is expected to be between 5.56 cents and 6.48 cents, reflecting a decrease of between 30% and 40% compared to the restated HEPS of 9.27 cents for the six months ended December 31 2014. The expected decrease is primarily due to a further decline in faxing volumes during the six months under review. Whilst the number of fax subscribers remained constant, the average rate per user for Fax2Email declined. Although this trend has been anticipated, giving rise to the development of new products and services, the decline was quicker than the increased revenue from new services being introduced to the market. However, for the period under review, Email2Fax increased by 15% albeit off a lower base.