ASX-listed information security vendor AUCyber has released its interim financial report for the half-year ended 31 December 2024, revealing a significant increase in revenue but also a hefty net loss.
The company, which specialises in cloud services and cyber security solutions, saw its revenue jump to $12.3 million, a 196 per cent increase from the $4.2 million recorded in the corresponding period the previous year.
However, the revenue growth was overshadowed by a net loss of $19.5 million, up 94 per cent on the $10 million loss in the first half of the previous financial year.
The substantial loss was primarily attributed to an impairment loss of $14.7 million relating to the write-down in the carrying value of goodwill of $10.5 million and customer-related intangibles of $4.2 million.
This was due to the overall performance of the newly formed group being below expectations.
AUCyber's board withdrew the FY25 guidance as a result.
The auditor's report also drew attention to a material uncertainty related to the company's ability to continue as a going concern, given the significant loss and cash outflows.
Despite that, the AUCyber directors believe that the company will be able to pay its debts.
Takeover by 5G Networks
Adding to the turbulence, AUCyber received an unconditional on-market takeover bid from 5G Networks Limited on 20 December 2024.
The initial offer of 11 cents cash per share was later increased to 13.5 cents cash per share on 28 January 2025 and the board unanimously recommended that shareholders accept the revised offer.
On 3 February 2025, 5G Networks gained over 50 per cent control of AUCyber.
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