Cirrus Networks' $20m year of expansion squeezes bottom line

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Cirrus Networks' $20m year of expansion squeezes bottom line
Frank Richmond

Perth-based Cirrus Networks grew its revenue by 31 percent to $19.5 million in the 2016 financial year, but posted an underlying loss of $1.6 million after a year of investments.

Cirrus managing director Frank Richmond said: "This is a very pleasing result in our first year as a listed entity. To continue our strong revenue growth in H2 while restructuring the business after the L7 Solutions acquisition and opening a new location in Canberra, is an excellent achievement."

The company added an additional $4 million of annuity-based managed service contracts in the period, and the underlying loss included expenses related to the managed services division and cloud infrastructure. Other costs dragging down the result included due diligence and the acquisition of L7 Solutions in December 2015, and costs associated with the company's new Canberra office.

Other one-off expenses include a $5.6 million listing fee, $68,000 share-based compensation and $123,000 in redundancy and restructure expenses from L7's acquisition.

Cirrus was No.3 in the 2015 CRN Fast50 with a total revenue of $14.9 million, posting revenue growth of 154.11 percent.

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