Data#3 Limited
Overview
Data#3 Limited (ASX:DTL) is a leading Australian IT services and solutions provider, Data#3 Limited is focused on helping customers solve complex business challenges using innovative technology solutions.1
Built on a foundation of over 40 years’ experience, combined with world-leading vendor technologies, Data#3 delivers an integrated array of solutions spanning cloud, mobility, security, data & analytics and IT lifecycle management. These technology solutions are delivered by combining Data#3’s services across consulting, procurement, project services, resourcing and managed services.
Listed on the ASX in 1997, Data#3 reported revenues of $1.4 billion in the 2019 financial year and has more than 1,100 employees. Headquartered in Brisbane, it has facilities across 12 locations in Australia and Fiji.
Services
Built on a foundation of highly-skilled resources, vendor expertise and proven success, Data#3’s Services provide the building blocks for the solutions the company deliver to customers..2
Consulting
Under increasing pressure to minimise costs while maximising technology’s capacity to drive business efficiency and performance – it’s little wonder that internal IT resources are often stretched beyond their limits.
Procurement
From strategy and procurement, through to lifecycle and supplier management, Data#3 can solve the challenges traditionally associated with procurement, helping you to turn it into something that is a business advantage.
Leveraging a team of experts and dedicated partnerships with an extensive list of world-leading vendors, Data#3’s procurement services will help you to reduce costs, ensure compliance and maximise the value of your assets.
Managing new technology projects from end-to-end can be a challenge. Especially when you are short on time, resources or don’t have access to the skills required. The risk of failure can often be high unless the right approach is taken.
Data#3 Project Services help customers align business and technology strategies, ensuring the desired outcome is achieved. Leveraging highly-skilled individuals, strong relationships with world-leading vendors, and proven methodologies, the company help customers to manage the complexities associated with project management.
The company work with organisations on a wide range of IT projects of all sizes, including Cloud, Mobility, Security, Data and Analytics, and IT lifecycle Management and more. The company maintain a dedicated focus on team leadership, customer sponsorship, process and methodologies, and a commitment to service in all of its engagements.
Managed Services
Managing your IT environment can be complex, time-consuming and costly. Moreover, a constantly evolving business landscape means that your IT needs to be more responsive, deliver better performance, and be flexible enough to support innovation…all in the face of tightening budgets and limited resources.
Proactive management puts you in control, allowing cient to empower your IT team and business to focus on innovation.
The experience the company deliver is what sets it apart. With expert capabilities and a proven track record in deploying managed services, the company take the time to gain a deep understanding of your business, from every angle. Importantly, you choose the model that’s right for you. From basic services through to a full outsourced solution, the company become an extension of your IT team and a trusted partner that understands your technology and business requirements.
Resourcing
Sourcing, placing and retaining IT professionals for your technology projects can be difficult.
As the only specialist ICT recruitment agency that’s fully embedded within an Australian business technology company, Data#3 Limited has an in-depth understanding of the technical skills and competencies you need to get the full value from your technology investment.
From augmentation services to fully outsourced IT staffing solutions, the company help manage your ICT capability requirements either on-site or remotely and have the right people and resources to match your ongoing technology needs.
Technology Solutions
Data#3 specialises in providing Cloud, Mobility, Security, Data & Analytics, and IT Lifecycle Management solutions. By combining world-leading technology from its partners with its experienced business consultants and technical specialists, Data#3 helps you to unlock the value of your technology investment and deliver real business value.3
Cloud
Many organisations aspire to take advantage of Cloud technology, but don’t have the necessary processes, tools, or skills to complete a transition effectively.
Data#3 assists customers by providing consulting expertise, Cloud specialists, and a range of migration and management services; making the shift a seamless process irrespective of whether you’re new to Cloud solutions or want to improve your existing services.
Mobility
Today’s workforce demands instant access to their applications, data, and the tools that help them collaborate. This step-change in expectations has placed businesses under increased pressure to support flexible work practices.
Data#3’s mobility solutions provide fast, reliable and secure access which connects people, systems and information; anywhere, anytime and from any device.
By integrating new mobile enterprise applications with both your existing infrastructure and Cloud-based services, its mobility solutions give your teams unprecedented freedom to work when and where they want. Furthermore, by including its collaboration solutions into your mobility strategy, you can empower your team with intuitive tools that make remote working more effective than being in the room.
Security
A rapidly evolving threat landscape where breach incidents are occurring on a regular basis means that organisations large and small need to take a more vigilant and proactive approach to IT security.
Data#3’s security framework simplifies the increasingly complex task of protecting your technology assets. Comprising of four key elements; Prepare, Protect, Detect and Respond, this consultation-driven framework is designed to not only protect you from threats, but also help you detect security breaches, and then rapidly contain them.
Data & Analytics
Exponential data growth and unparalleled levels of access have created a new data-driven world; one in which an organisation’s ability to gather, process and leverage all available information has a significant impact on its success.
Data#3’s Data & Analytics Solutions address the need to connect the previously unconnected (IoT), consolidate the volumes of data (Big Data), and provide access to previously inaccessible information to guide your business decisions.
IT Lifecycle Management
With multiple license agreements, renewal dates and maintenance contracts for all your hardware and software assets, it’s easy to become overwhelmed by the cost and complexity associated with managing your IT lifecycle.
By consolidating and streamlining your IT environment, Data#3 helps you reduce complexity, minimise total cost of ownership, ensure compliance and maximise the value of your assets.
Financial highlight
Total revenue increased for the half year ended 31, December 2019 by 11.6% to $718.9 million, fuelled by the continued strong growth in public cloud revenues which increased by 76.5% from $142.7 million to $251.9 million.4
Infrastructure sales increased by 4.8% to $180.3 million and Software licensing revenues increased by 18.1% to $425.3 million, boosted by public cloud solutions. Consulting revenues decreased by 36.4% to $8.5 million, reflecting the decision to narrow the business unit’s focus in FY20, including the avoidance of large, fixed-price application projects. Project services revenues decreased by 0.5% to $27.6 million, Support services revenues increased by 8.9% to $45.1 million, and Recruitment revenues increased by 5.9% to $28.5 million. Discovery Technology revenues increased from $2.0 million to $2.7 million, and other revenue increased from $0.8 million to $0.9 million, largely comprising interest revenue.
Total gross profit (excluding other revenue) increased by 7.7% from $82.3 million to $88.6 million, and total gross margin decreased from 12.8% to 12.3% due to changes in sales mix, with strong growth in Software licensing and public cloud revenues, and the decrease in Consulting revenue.
Internal staff costs increased by 4.7% from $62.1 million to $65.1 million, reflecting headcount growth of approximately 2% and general salary increases in line with the industry trend. Other operating expenses decreased by 1.1% from $12.0 million to $11.8 million with savings from the decommissioning of the Data#3 Cloud platform.
Net profit before tax increased by 40.6% from $9.0 million to $12.7 million, and net profit after tax (excluding minority interests) increased by 41.5% from $6.1 million to $8.7 million. This represents basic earnings per share of 5.65 cents, an increase of 41.5% from 3.99 cents in the PC
Outlook
The strong first half performance and pipeline of opportunities for the second half give it confidence that the company will achieve its full year financial objective, being to deliver sustainable earnings growth.
The company also remain confident about delivery of the company’s longer-term strategy. Data#3 Limited has a robust business, no material debt, solid long-term customer relationships, committed supplier partnerships, and a highly experienced and productive team. The company continue to see growth in the Australian IT market, and believe Data#3 Limited is well positioned to capitalise on that opportunity as the company continue to develop and offer solutions for its customers’ changing requirements.
