What are the critical fundamentals supporting this share.....?. Apart from credibility and loss of Microsoft contra t, low volume shares trades... Surely the revenue... And margin value suggests this share is significantly undervalued. What are your thoughts... High risk as we don't know what else is lurking.. But 70+% business non gov....
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While the immediate short-term impact can be managed, EOH is assessing and discussing various
alternatives to ensure the long-term continuity of service to all customers and to maximise value for
shareholders. EOH is confident that this can be achieved.
As previously disclosed, the Channel Partner Agreement (as software licence re-seller division) is not
material to EOH and reported a total profit before tax of approximately R10 million during the last financial
The impact of the latest notices is still being assessed, but early indications are that:
- Our Microsoft related bespoke application development, its largest business, will be predominantly
- Any long-term impact on the IP businesses, including the core IP that has been developed for re-sale
utilising Microsoft technologies, can be mitigated through migration to other cloud providers.
- Our CRM (Dynamics 365) and Productivity Solutions business will be impacted in terms of access to
partner support portals.
- Our Microsoft-related managed services business and clients will experience no impact as these
services are provided on client infrastructure and platforms.
- Our Cloud business and platform business and the re-sale of Azure cloud offerings will be impacted
in the short-term and EOH is in discussions to find a solution to ensure continuity of service and
While EOH's assessed impact of the latest notification on profit before tax is estimated at less than R20 million
during the current financial year, this will bring the total impact of Microsoft exposure to R30 million profit
before tax. Moreover, there is an overall medium to long-term go-to-market and credential impact and risk
in not retaining Microsoft Gold Partner status.
EOH apologises for any uncertainty and inconvenience caused and will continue to use our best endeavours
to ensure there are no outages or disruptions to any client services as a result of the terminations.
Profit warning in the sens yesterday