Amcom and Cisco partner in enterprise telephony space

Amcom and Cisco partner in enterprise telephony space

Amcom also announces half-year results

Telco service provider, Amcom Telecommunications (ASX:AMM), has inked an agreement with Cisco that will enable it to deliver Cisco’s Hosted Collaboration Solution (HCS) into the Australian market.

Cisco’s HCS enables customers to unify their communications and deliver them with security via the Cloud, over the Amcom National Network.

Amcom’s investment in the network upgrade and deployment of HCS comprises an initial $8 million. Further investments will be made as services are sold and upgraded. The investment will be funded by a long-term vendor finance facility provided by Cisco.

Amcom claimed the partnership was made to capitalise on the rapid increase in demand for hosted technology by Australian enterprises, and build on its Cloud and IT telephony portfolio.

“This contract is an important part of our strategy to offer customers IT and Communications-as-a-Service, delivered over our national data network,” Amcom CEO, Clive Stein, said.

According to Stein, the solution complements its existing offering and gives enterprise customers the ability to unify all of their communications, including telephony and video conferencing, instant messaging, presence and the ability to access them in real-time across any location or device.

“HCS also enables employers to capitalise on the transition to Bring-Your-Own-Device (BYOD) workplaces and supports the shift to a more mobile workforce,” Stein said.

He also said HCS offers customers a compelling reason to transition from legacy on-premise systems, to a hosted or Cloud delivery model.

“HCS represents the next step for organisations that require the advanced features and flexibility of a Cloud based solution. HCS will be particularly attractive to a significant portion of the Australian telephony market with on-premise Cisco Call Manager Solutions,” Stein added.

The agreement is effective immediately and services are expected to be available to existing and new customers from June 2013. Amcom said it is in discussions with a number of anchor clients.

Amcom also recently released its half-year results for the six months ending December 31, 2012.

It reported a net profit after tax of $10 million. Its Earnings per share before significant items increased 17 per cent to 4.1 cents per share.

Amcom claimed the uplift in earnings was due to organic sales growth from its core data networks (fibre) and expanded hosted and Cloud services offerings.

It announced a revenue increase by 43 per cent to $80 million, including a full six month contribution from Amcom L7 Solutions, which it acquired in November 2011.

Notwithstanding the significant investment made in new operating capabilities, it announced that its EBITDA increased 16 per cent to $19.2 million and EBIT up 18 per cent to $14.5 million.

Amcom’s outlook remains favourable. It expects an increase in underlying net profit after tax of about 20 per cent in FY 2013 over FY 2012.

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