Data#3 nudges $1 billion in sales

Data#3 grew revenue by $67.7 million, or 13 percent, to hit $983.2 million for the 2016 financial year. 

The Brisbane-headquartered IT solution provider boasted strong increase in profits, with earnings before interest, tax, depreciation and amortisation (EBITDA) up 31.67 percent to $22.4 million and net profit after tax (NPAT) up 30.4 percent to $13.8 million.

Laurence Baynham, Data#3 chief executive, said: "The FY16 results reflects the company's strategy of transitioning from primarily a product-centric approach to an increasingly service-centric approach in a rapidly changing IT environment."

One glum spot was Data#3's wireless acquisition, Discovery Technology, which saw a "disappointing" performance – something the company hopes to improve in the year ahead.

Total cloud-based revenue increased 110.5 percent to $99 million, and Baynham expected traditional technology investments to remain flat for FY17. "We are seeing digital technologies leading business transformation in both commercial and public sector organisations."

Data#3 stated it will invest in sales to help customers with digital transformation. The company will stablish a health sector practice in the hopes to achieve similar results to previous investments in education.

The reseller stated that wants to grow services revenue by increasing annuity and margin.

Data#3 revealed stronger presence in Victoria and Tasmania, 19 percent growth together, and Western Australia with 18 percent of market growth. The reseller also showed growth in Queensland, ACT and New South Wales 10, 12 and 14 percent consecutively. South Australia market growth declined by 10 percent.

"We are pleased to report another year of solid revenue growth and even stronger profit growth. We have now delivered four consecutive half-year reporting periods of growth. In addition to delivering strong financial results, we are also pleased with our progress against our strategic objective to increase our services related business."

Data#3's share prices has almost doubled over the past 12 months, hitting $1.40 at the time of writing.

Today's results reflect a continued turnaround at Data#3, with profits rising for the second consecutive year following three years of declines.

Data#3 has more than 1100 employees across eight offices, three integration centres and three data centres in Australia. 

The company is a CRN MVP, recognised for its high levels of vendor partnerships.