Rhipe has managed its costs carefully and reduced the group's operating expenses and posted a positive net profit of $15,000, a good result compared to last financial year's first half loss of $772,000.
The revenue of the Australian cloud distributor for the half year ending 31 December 2016 grew 9 percent to $72.5 million.
The company's gross margin on its licensing business went up 15 percent year-on-year to $11 million in the first half of the 2017 financial year. Licensing is the source of the majority of Rhipe's revenue growth, supported by more than 2000 technology service provider customers.
"The growth has been primarily driven by our ‘core’ customer base", which excludes Rhipe's largest 10 customers, the company report stated.
The company reported a $684,000 earnings before interest, tax, depreciation and amortisation (EBITDA).
Rhipe has just announced plans to expand into South Korea after it was appointed to the Microsoft Cloud Solution Provider (CSP) and Services Provider Licensing Agreement in the country. The distributor will leverage its intellectual property and operational capabilities to expand into this new region. Rhipe is currently looking for partners in the region to help fast-track sales growth.
For the 2016 financial year, Rhipe reported revenue of $143 million. The 32 percent growth was helped by the distributor's appointment as a CSP.
Rhipe now re-confirms its financial target guidance of $4m reported EBITDA and more than $8m underlying EBITDA for the full financial year to 30 June 2017.
Updated 9:09am 20 February to show EBITDA was $684,000.
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