- Strong quarterly cash generation
- Record receipts from customers
- Continued investment in future growth
- Sales success continuing with record Q4 orders booked
27th July 2017 – Cirrus Networks Holdings Limited (“Cirrus” or the “Company”) (ASX: CNW) is pleased to provide the following update on activities during the quarter.
- The company returned to strong cash generation for the quarter with Net Cash from Operating Activities being $704k with a record $18.7m receipts from customers. This result contributed to a breakeven cash position for the year with significant revenue growth.
- The company announced the completion of the NGage Technology Group purchase in early April and subsequently announced on 30 June that NGage had booked in excess of $15m in new orders during the final quarter
- The company announced on 30 June it expected record revenue in excess of $50m for FY17 being circa 150% year on year revenue growth.
- The company also continued to invest in future growth with ongoing support for the Canberra office and increased investment in the state based sales teams leading to breakeven operating cash for the year.
Status of Conditions for Exercise of Deferred Consideration Shares
As required by the waiver to ASX Listing Rule 7.3.2 granted to the Company by ASX on 17 April 2015 in relation to the issue of “Deferred Consideration Shares” to the Cirrus vendors as part of the Cirrus acquisition, the Company advises as follows:
|Number of Deferred Consideration Shares issued during the reporting period||Nil|
|Number of Deferred Consideration Shares issued in previous reporting periods:|
|1. Cirrus achieving AUD$12,000,000 in actual gross revenue with a minimum Gross Profit of 10% within a period of 2 years from 2/7/2015 (“Milestone 1”)|| 50,000,000 ordinary shares
(per ASX release 16 September 2016)
|Number of Deferred Consideration Shares that remain to be issued on the following bases:|
|2. Cirrus achieving AUD$2,000,000 in EBIT during any rolling period of 12 months within a period of 3 financial years from 2/7/2015 (“Milestone 2”)||25,000,000 ordinary shares|
|3. Cirrus achieving AUD$4,000,000 in EBIT during any rolling period of 12 months within a period of 3 financial years from 2/7/2015 (“Milestone 3”)||17,500,000 ordinary shares|
For further comment and information
Mr Matt Sullivan Mr Matt Green
Chief Executive Officer Chief Financial Officer
Cirrus Networks Holdings Limited (ASX: CNW) is an innovative IT solutions provider who works with businesses to understand their technological needs and implement world leading solutions that are both cost effective and provide long term operational gain. The diverse reach of Cirrus means the company is able to provide a wide range of solutions including:
- Data Centre and Cloud;
- Data management (including big data);
- Network design and optimisation;
- Business continuity;
- End user computing;
- Unified communications and IP Telephony;
- High quality IT Service Management, Consulting and Project Management services.
Excellent service and an innovative, holistic approach has seen Cirrus quickly grow an extensive base of blue chip clients across industry sectors. The rapid expansion of Cirrus awarded the company second place for the fastest growing “Rising Star” technology company as well as second place at Deloitte Australia’s Technology Fast 50 Awards.
The Cirrus offering was strengthened further in 2015 with the acquisition of Perth-based IT Solutions Provider, L7 Solutions. Since then, an assertive national expansion strategy has enabled Cirrus to establish a robust Eastern states presence with the formation of an office in Canberra and the recent acquisition of Melbourne based IT Provider, NGage Technology Group.