Major New Managed Service Contract Win

PERTH – October 16, 2015 –Cirrus Networks Holdings Limited (“Cirrus” or the “Company”) (ASX: CNW) is pleased to announce a major new Managed Service contract with Richmond Wellbeing Inc to an initial value of $600,000. The contract has a term of three years and provides scope for additional add on services to be quoted beyond the initial value.

Highlights

  • Initial $600,000 Managed Service contract signed with Richmond Wellbeing
  • Term of three years
  • Additional add on services being quoted beyond the initial contract value
  • Fourth managed service contract announced since July
  • Total value of contracts now exceed $2.1m since Managed Service Division launched

The services to be provided to Richmond Wellbeing by Cirrus include cloud migration services, IT help desk services, data centre infrastructure and monitoring.

The total contract wins now exceed $2.1m since the Company officially launched its Managed Service Division in June 2015. The annuity income derived from these managed service contracts is highly complementary to the existing Cirrus business and will provide the company with a higher degree of revenue continuity going forward.

The Company continues to invest heavily in its managed service division through capital expenditure and staff recruitment to enable it the ability to increase services as demand grows. Although incurring upfront costs, the repositioning of the business with a focus to long-term annuity contracts should provide a more streamlined and efficient business model moving forward.

Yvonne Timson, Executive Manager Corporate Support Services – Richmond Wellbeing comments, “The team at Cirrus demonstrated thought leadership in their approach to designing technology and services that will enable our organisation to retain its position as one of WA’s leading mental health service providers. It has been refreshing to work with a company that still sees its biggest asset as their people, which is evident in the service we have received thus far.”

The Cirrus solution consists of a roadmap enabling Richmond Wellbeing to move core applications into the Cloud. Overarching this is a managed help desk and remote monitoring service with IT strategy planning.

Frank Richmond, Cirrus Networks Managing Director comments, “To sign our fourth customer within three months to our Managed Service Division is a major achievement for the Company and of great benefit for Shareholders. We have been strongly focused on improving revenue continuity for the business going forward and each signing of a new Managed Service annuity contract helps us achieve that goal.”

About Richmond Wellbeing

Richmond Wellbeing is a leading mental health organisation providing support for individuals and their families since 1975. Based in Western Australia, the organisation is part of a global network of Richmond Fellowships throughout the world. Richmond Wellbeing is a leader and advocate for consumer-centered mental health recovery. Its services include Community Outreach Services, Community Residential Services, Albany Fellowship House, Carer & Family Services, Hearing Voices Network WA and Richmond Learning Exchange. It is a registered service provider for the National Disability Insurance Scheme (NDIS), National Disability Insurance Agency (NDIA) and WA NDIS MY WAY.

For further comment and information:
Frank Richmond
Managing Director
Cirrus Networks
Tel: (08) 6180 4200
investors@cirrusnetworks.com.au
cirrusnetworks.wpengine.com