KAZ Group has reported strong revenue growth for the first half of the year ended December 2003 – up 16 per cent to $215 million - topping off a stellar year for the ASX-listed IT services provider.
“It’s all good,” managing director, Peter Kazacos, said.
Product sales revenues were up 41 per cent and professional services revenues by 9 per cent.
These were early signs of IT services market improvement through increased product sales, he said.
Recent company success stories include the clinching of a $4 million government outsourcing contract with the Department of Communications Information Technology and the Arts (DOCITA), along with a strong performance in defence contracts (a $20 million deal, for example, was inked with the Royal Australian Navy to develop and improve its data management).
KAZ also secured a deal (worth more than $4 million) with the NSW Department of Mineral Resources to supply the department with a Web-based electronic service delivery application, and a five-year managed services contract ($10 million) with Australian chemical company Orica. Kazacos said the latest deals pointed to ongoing success for the company, which reported earnings before interest, tax, depreciation and amortisations (EBITDA) of $16.4 million.
“This signals to us we’ve come out from the bottom of the IT downturn," he said. "The market is picking up and we expect our full-year revenue to be from $400 million to 410 million."
He expects the hardware and software refresh cycle to gain momentum.
Other hot areas to watch this year included server consolidation, selective outsourcing, and IP telephony, Kazacos said. “Across the board, there’s renewed confidence,” he said.
The tech wreck was over, Kazacos said.
The company expects growth rates in 2005 to be more than 10 per cent.