Managed services provider Cirrus Networks has assured shareholders that the company will be able to meet its own earnings guidance for FY2020 despite the uncertainty around the coronavirus pandemic.
In an ASX announcement, Cirrus said the business had not experienced any material change to trading conditions, its sales orderbook or pipeline, while also managing any material impact on its supply chain.
Cirrus expected it would reach the lower end of its adjusted EBITDA guidance range of $3.6 million to $4.1 million, as it provided in an announcement in late February 2020.
The company so far had only seen limited impact from the coronavirus pandemic so far, thanks to a significant customer base in federal, state and local government, as well as in resources, non-profits and health sectors, which collectively represent 70 percent of revenue.
Cirrus also managed to see 10 percent revenue growth for the first three months of 2020, with managed services growing 19 percent year over year and professional services and product revenue up 8 percent.
In spite of this, the company implemented some cost reduction measures, in anticipation of a likely outcome of needing a long recovery period.
The cuts aim to help Cirrus manage any potential short-term impacts and help put the company in a position of strength in the long term.
Cirrus managing director Matt Sullivan said, “I am very proud of the management and staff at Cirrus in their response to this health, and now economic, crisis.”
“We have not only ensured the health and well-being of our staff and customers, but transitioned to a remote working model while continuing to deliver quality, value-add customer focused outcomes.
“This highlights the quality of our wonderful staff across the country and showcases our expertise particularly in connectivity, collaboration and enterprise security. This, together with appropriate cost reductions and solid balance sheet, ensures Cirrus is well positioned to assist clients in the recovery phase of this crisis.”
