ASX-listed Data#3 (ASX:DTL) has achieved record results for FY17 with revenue up 11.7 per cent to $1.1 billion and net profit reaching $15.4 million, up 11.2 per cent.
Product revenue rose 12.4 per cent to $889.2 million and services revenue increased 9.5 per cent to $208.1 million. Cloud-based revenues were also up 71.3 per cent from $99 million to $169.5 million.
Data#3 CEO, Laurence Baynham, said it had delivered six consecutive half-year reporting periods of growth as it progresses towards increasing its services business.
“The FY17 results reflect the company’s ongoing strategy of transitioning from primarily a product-centric approach to an increasingly service-centric approach in a rapidly changing IT environment," Baynham said.
"These results are also a testament to the very dedicated and skilled team of people at Data#3.
"We are currently on track with our strategic plan which contains three long-term objectives to deliver sustained profit growth; to grow services revenue with an increase in annuity and margin; and to grow cloud services revenues.”
Baynham predicts economic conditions will remain relatively stable in FY18 with traditional technology investments remaining flat.
“We are seeing digital technologies continuing to lead business transformation in both commercial and public sector organisations,” he said.
“Data#3 together with the consulting team at Business Aspect, are well positioned to enable this transformation and capture new investment.”
This year marks several milestones for Data#3 including 40 years in business and 20 years on the ASX, topped off with achieving $1 billion in revenue and record profit.
In July, Data#3 acquired an extra 15.8 per cent in Wi-Fi analytics provider Discovery Technology, taking its shareholding of the company from 61.6 percent to 77.4 per cent.
In FY17 the business achieved a significant profit turnaround and delivered a total before tax profit contribution of $1.4 million.