Data#3 (ASX:DTL) has announced a Net Profit After Tax (NPAT) of $13.8 million for its FY16 financials for the year ending June 20, representing an increase of 30.4 per cent from the same time last year.
The company’s gross profit was up 13.2 per cent to $146.6 million, while its revenue was up 13 per cent to $983.2 million.
The financials surpass the $13-$13.5 million NPAT range it predicted in a pre-audit estimate in July this year.
Data#3 CEO, Laurence Baynham, said the company’s continued sustainable profit growth marks its further strategic shift towards services.
“The FY16 results reflect the company’s strategy of transitioning from primarily a product centric approach to an increasingly service centric approach in a rapidly changing IT environment," he said.
Specifically, its product revenue was up 12 per cent to $794 million and services reveue was up 16.9 per cent to $187.4 million, with Cloud-based revenue up by 110.5 per cent, from $47million to $99 million.
"We have now delivered four consecutive half year reporting periods of growth," Baynham added.
"In addition to delivering strong financial results, we are also pleased with our progress against our strategic objective to increase our services related business."
According to Baynham, the company is on track with its strategic plan which contains three long-term objectives – delivering sustained profit growth, growing services revenue with an increase in annuity and an increase in margin, as well as growth in Cloud services revenues.
“We see economic conditions remaining challenging in FY17 with traditional technology investments remaining flat," he added.
"However, we are seeing digital technologies leading business transformation in both commercial and public sector organisations.
"Data# 3, together with the consulting team at Business Aspect, are well positioned to enable this transformation and capture new investment.
"Our overall financial goal for FY17 is to continue to deliver earnings growth and returns to shareholders."
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