Relieved City ready to listen to Dialog again
Dan Wagner, chief executive, said the company would probably make announcements in the next few weeks. "We would not be making these kinds of statements if we weren't close to a number of things."
The deals are thought to include Dialog licensing its Infosoft software, which automatically categorises Internet documents, to others. It may also sign up strategic investors for its e-commerce division.
The announcements, when made, will help to speed Dialog's rehabilitation after a disastrous profits warning last year. The warning shattered confidence in Dialog's management, which had promised it would revive revenue growth after it took over Knight-Ridder Information, the online information group, in a reverse takeover late in 1997. Dialog shares lost two-thirds of their value, touching a low of 47p in January.
Mr Wagner admitted that the company had promised too much. He said that in the future Dialog would take a more measured approach. That was underlined by yesterday's full-year results, which showed Dialog reporting pre-exceptional pre-tax profits of pounds 8.4m. The figures, in line with expectations, were greeted with a 9.5p rise in the shares to 95p. "The market is basically breathing a huge sigh of relief," said Patrick Yau of Nomura Securities.
Others said Dialog's reassurance that it would be able to meet its debt repayment targets for the current year also helped. The company finished last year with a debt load of $256.6m (pounds 157m). Apart from interest payments, it is due to repay $21.9m this year. Mr Wagner said Dialog was considering restructuring its debt, but he ruled out another rights issue.
From April, Dialog is due to be reclassified in the Internet subsector of the market IT index. Dialog looks undervalued, but the City will probably take a little more convincing before it rushes back in.
Feat of engineering: Incredible photographs show construction beneath New York's Second Avenue
Charles Saatchi accepts police caution for assault after trying to dismiss Nigella Lawson row as 'playful tiff'
Google, BT and Yahoo! agree plan to tackle child porn
Exposed: Edward Erin, the doctor whose faked asthma drug test results proved fatal
Charles Saatchi: Taking caution for holding Nigella Lawson's throat was 'better than it hanging over all of us'
- 1 Freedom fighters? Cannibals? The truth about Syria’s rebels
- 2 Breaking the Silence: In the reality of occupation, there are no Palestinian civilians – only potential terrorists
- 3 Special Report: US troops are stationed in Japan to protect the nation. But to sex workers in Okinawa, they bring fear, not security
- 4 Vice pulls 'breathtakingly tasteless' fashion shoot glorifying the suicides of famous female authors from Sylvia Plath to Virginia Woolf
- 5 Iran to send 4,000 troops to aid President Assad forces in Syria
iJobs Money & Business
£65000 - £85000 Per Annum: The Green Recruitment Company: The Green Recruitmen...
£400 per day: Orgtel: A top tier banking client urgently requires a Senior Bus...
£250 - £350 per day: Orgtel: Financial Crime Analyst,Midlands, Banking, AML/Sa...
£20,000 - £45,000 OTE: Co-Venture: Working for this company will give you a ch...