Story image

Datacom report revenue growth despite overall loss

Datacom Group has delivered another year of revenue growth, increasing revenue by 9.3% to NZ$1.27 billion for the Financial Year ended 31 March 2018. The Group profit after tax for the year was NZ$23.5 million.

Datacom now has twenty years of continuous revenue growth. Over the past ten years alone Datacom has more than doubled its revenue, with a compound annual growth rate (CAGR) of 8.5% across that period, showing the company’s durability and adaptability in a time of massive market change.

Datacom delivered a revenue increase of 8.8% in Australia and Asia, and 9.8% in New Zealand, driven by key wins such as the Department of Home Affairs in Australia, and Auckland Airport, NZ Lotteries Commission and Vector Energy in New Zealand.  

In addition to these wins, Datacom embarked on major new projects with existing customers such as Transport for NSW, The Department of Premier and Cabinet in Queensland, and the Accident Compensation Corporation (ACC) in Wellington. 

Capital expenditure increased by 53% over the prior year to $55.4 million, and operating expenditure on major investments increased by 35% to $19.1 million. 

These investment increases support the company’s strategy to grow its capabilities and global footprint and support the creation of new lines of business and solutions utilising Datacom’s own intellectual property.  

Datacom also opened new offices in Auckland, Adelaide, Singapore and a new partnership with Australian data centre provider, AirTrunk.

The Datacom Systems business continued to generate the largest percentage of revenue for the Group, particularly through projects based around IT Managed Services, 3rd Party Products and Licensing, and custom software development. 

Datacentres, Networks, and public cloud consultation and implementation projects continued to perform strongly. Datacom’s own hybrid cloud solution, DCS, continued to grow and saw significant investment into Datacom’s new Azure Stack solution.

Datacom now operates from 36 locations across Australia, New Zealand, Asia, Europe, and the USA. Employee numbers increased to 5,332, up 9.3% from the year prior.

Datacom CEO Greg Davidson says, “Datacom’s strategy and new organisational structure positions us well to meet current and future client needs, as well as future growth across all markets. 

“We’re confident in our ability to capitalise on strategic growth areas such as cybersecurity and customer experience, and our ability to deliver high-value solutions consistently to our customers.

White box losing out to brands in 100 GE switching market
H3C, Cisco and Huawei have all gained share in the growing competition in the data centre switching market.
Gartner names newcomer Exabeam a leader in SIEM
The vendor landscape for SIEM is evolving, with recent entrants bringing technologies optimised for analytics use cases.
52mil users affected by Google+’s second data breach
Google+ APIs will be shut down within the next 90 days, and the consumer platform will be disabled in April 2019 instead of August 2019 as originally planned.
Genesys PureCloud generates triple-digit revenue growth year on year
In Australia and New Zealand, the company boosted PureCloud revenue by nearly 100%.
Symantec releases neural network-integrated USB scanning station
Symantec Industrial Control System Protection Neural helps defend against USB-borne cyber attacks on operational technology.
IDC: Standalone VR headset shipments grow 428.6% in 3Q18
The VR headset market returned to growth in 3Q18 after four consecutive quarters of decline and now makes up 97% of the combined market.
Kidd made Ingram Micro executive for cloud
Barbara Kidd has been promoted to cloud general manager as the company signs new vendors to its Cloud Marketplace.
Open source will be the next big thing for the channel
Channel firms should be on the lookout for opportunities across open source and more diverse software offerings like software-defined containers and storage.