Data#3 has reported 19.2 percent growth in net profit, showing its transition into public cloud and services is paying off.
For the six months ending 31 December, net profit grew to $4.3 million from the same period last year. Revenue was also up by 12 percent to $457.5 million.
Data#3’s three business segments continued to grow, with the cloud business alone growing 36 percent to $40 million in revenue. The services business also grew 13 percent to $85 million revenue.
While product was still the biggest earner in terms of revenue with $330 million, the product and services business made a nearly identical gross profit to the same period last year, raking in $34 million.
Chief executive Laurence Baynham said the strong growth was the results of a continued focus on transitioning the business from product to services, with a strong focus on public cloud.
“It’s not just from one dramatic event, we see the obvious trend from public cloud,” said Baynham.
“Our public cloud solutions business is growing first at 36 percent. Our goal around public cloud is to have $100 million in June. At the same time, we’re seeing an increase in networking, communications and the end-user computing business.”
Data#3 landed a number of multi-million dollar deals throughout the half-year, including a Cisco communications upgrade across three campuses for Edith Cowan University.
The reseller giant also took a controlling stake of wi-fi analytics provider Discovery Technology in July, taking the total price tag to approximately $3 million.
Baynham said that the integration of Discovery Technology hadn’t had a material impact on profit, but there was substantial pipeline of new opportunities in retail, airports and education.
Data#3 shares were up slightly to reach $1.12 as at 12:43pm, compared to $1.10 at the ending of trading on Friday.