IT services and solutions provider, Data#3 jumped 13% after it announced its results for FY21. Highlighted by an increase in revenue of 20.3% to $1.96 billion, while NPAT was up 7.5% to $25.4 million.
The increase in revenue reflected growing demand for Data# 3’s solutions in a rapidly evolving market. The result included strong growth in public cloud revenues, up 36.2% to $791.6 million as major organisations and Government departments accelerate migration to cloud-based infrastructure.
The result was impacted by increased product delivery delays in the second half, related to the global computer chip shortage. Which resulted in a $3 million backlog of orders that could not be delivered or invoiced at year-end, although would be realised in FY22.
Data# 3 has been able to secure critical deliveries for customers, thereby mitigating some of the supply chain delays, while some supply constraints for various product sets are expected to continue in FY22.
Data#3 noted that the group’s performance continues to be underpinned by its leading market position, vendor relationships, and long-term customer base. The Australian IT market is predicted to grow at a record rate this year, and they are experiencing a steady increase in the pipeline of large integration project opportunities.
While the backlog from FY21 has provided a fast start to FY22, at this stage the company has refrained from providing specific guidance or commentary on the FY22 outlook.
Commenting on the FY21 result, Data#3 Chief Executive Officer and Managing Director Laurence Baynham said: “We knew that FY21 would be challenging after a record profit performance in FY20. Our goal is to provide our shareholders with sustainable earnings growth, and we are pleased to announce that we delivered another record result. The result reflects improving services profitability and demonstrates the inherent strength and relevance of our solution offerings in a rapidly evolving market.”