NEC Australia is showing signs of recovery off the back of strong performance in its managed services business.
In a document lodged with corporate regulator ASIC, the IT service provider said its key metric of success was operating profit, which grew from $100,000 to $4.3 million in the financial year ending 31 March 2016.
Revenue was also up by 15 percent from $386 million in 2015 to $443 million in 2016. Total comprehensive losses amounted to $8.2 million, which was an improvement on last year's $35 million loss.
The Australian arm of the Japanese technology provider said the success was due to three major ongoing contracts in its growing managed services division. NEC also attributed improved profit to effective ongoing management of sales and general administrative expenses.
The company migrated its IT Services Pty Ltd and IT Solutions Pty Ltd onto the same enterprise resource planning system as NEC Australia.
As part of the turnaround signalled in 2014, NEC sold off the property assets of its Melgrave, Victoria headquarters, and relocated its staff to a new office in the Melbourne CDB. The relocation to 600-staff Docklands headquarters was completed in November 2015. NEC also offered staff voluntary redundancies during the restructure.
NEC expects continuing operating profits underpinned by its major contracts with the Department of Foreign Affairs and Trade, Transport for New South Wales and Defence Centralised Processing Project.
Australia's national law enforcement information sharing agency CrimTrac handed NEC a $52 million, five-year contract to operate its biometric identification services in May. The South Australian police also tapped NEC for a $780,000 contract to deliver a biometrics platform to be used in criminal investigations.
NEC Australia managing director Tetsuro Akagi stepped down in April after more than two years in the role to take the chief executive role of NEC Asia. He was replaced by former executive director of IT solutions and services Mike Barber.