11th Apr 2008 14:43
Nasstar PLC11 April 2008 Nasstar Plc 11 April 2008 Disposal of legacy web hosting contracts Nasstar plc ("Nasstar", AIM: NASA) announces that on the 10 April 2008 it hasdisposed of its web hosting contracts for a total consideration of £120,000payable in cash. The web hosting contracts were with 13 customers for theprovision of servers for hosting web sites. Web hosting is no longer corebusiness and is not sold anymore. The contracts generated revenue of just under £120,000 per annum and hadassociated direct costs including rack space, power and licensing ofapproximately £30,000 per annum. In addition to the direct costs were staffingand overheads necessary to support the contracts. As the sales of core serviceshave grown the diversion of support staff from supporting core services tosupporting the web hosting contracts had reached the point where additionalstaffing would have been necessary to support the web hosting contracts. The proceeds of the disposal will be used to continue the growth of Nasstar'sHosted Desktop core service. Charles Black, Nasstar plc Chief Executive said"This is a good deal for us. The disposal of the non-core web hosting businessfurther streamlines our operations and immediately brings in a year's revenuefrom these contracts whilst also removing the on-going costs and overheadassociated with supporting the web hosting service. This stops us diverting technical staff to non-core business. Nasstar is nowcompletely focussed on sales of its Hosted Desktop service whereby subscribersdo their computing on the internet rather than locally. The revenue from the webhosting was increasingly becoming a declining proportion of total revenue andcarried the risk that because it wasn't core business the revenue would continueto decline into the future." ENDS Contact information Nasstar plcCharles Black, Chief Executive020 7148 5000 - Telephone W.H. Ireland Limited, Nominated Adviser to Nasstar plcNicola Rayner0121 616 2101 - Telephone About Nasstar plcNasstar's service enables subscribers to do all of their computing in theinternet cloud, with access to their desktop, files, applications and email overthe internet rather than on-premise. Cloud computing is a highly scalableservice that provides benefits including anywhere access to computing andprovides an alternative to traditional locally installed on-premise computing. Nasstar was founded in 1998 by Charles Black. Nasstar plc was admitted totrading on the London Stock Exchange Alternative Investment Market in December2005 (AIM: NASA). For further information please visit www.nasstar.com. For Investor Relationsvisit www.nasstar.com/IR This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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