1H FY16 Results: Cirrus Networks growth continues

 

HIGHLIGHTS

  • Revenue up on prior year at $6.55 million
  • Growing annuity revenue with the addition of $3.0m of new contracts
  • Investment in future growth
  • Successful completion of L7 Solutions acquisition

March 18 2016 – Cirrus Networks is pleased to announce its 1H FY16 results, showing the continued growth prospects of the Company.

The period saw an exciting transformation of the company with significant investment in and establishment of the Cirrus cloud and associated managed services division; move to dedicated service centre premises; and the successful completion of the L7 Solutions acquisition in December.

The half delivered continued revenue growth over the previous year at $6.55 million, as well as an additional $3 million of annuity-based managed service contracts.

Speaking about the results, Cirrus Managing Director Frank Richmond said, ”This is a very pleasing result for the half. To maintain our revenue growth while transitioning the company to a full service IT solutions provider focusing on longer term annuity contracts, is an excellent achievement. The success in winning some significant long term contracts with new customers in a tough current economic climate, highlights the quality of our product offerings and people. This together with the opportunities arising from the L7 Solutions acquisition provides us with a foundation to deliver continued excellent results for shareholders.”

The underlying net loss for the consolidated entity amounted to $1,173,813. The underlying net loss for the period includes:

  • expenses related to the establishment of the Managed Services Division including the related cloud infrastructure; and
  • expenses related to the due diligence and acquisition of L7 Solutions Pty Ltd

The net loss for the consolidated entity after the one off non-cash expense of $5,610,548 from the Australian Accounting Standards treatment of the reverse acquisition of the Cirrus Networks Holdings Group, was $6,784,361.

31 December 2015

(6 months)

 

Underlying Net Loss for the period

 

$1,173,813

Less:

One off non-cash expense for the reverse acquisition of Cirrus Networks Holdings

 

 

$5,610,548

 

Net Loss for the consolidated entity for the period

 

$6,784,361

Managing Director Frank Richmond stated “With a strong debt free balance sheet and the recent appointment of board member Mr Matthew Sullivan to the executive, Cirrus is well placed to continue to invest in the growth curve and capitalize on opportunities particularly from the L7 Solutions acquisition.”