However, in the negative was Over the Wire (ASX:OTW) net profit after tax, which fell by 23% to $1.8 million, during the six months ending 31 December.
With the solid half year, along with recurring revenue increasing by 25% to $45.9 million (or more than 91% of total turnover), OTW Managing Director Michael Omeros said the six months result was at the top end of the guidance that the company provided in its Business Update late last year.
“The strength of our current sales pipeline and the orders being provisioned from last quarter, our most successful quarter to-date, gives us confidence of a second half result in line with our expectations,” Omeros said.
“We continue to deliver high rates of recurring revenue (greater than 90% of total revenue), with a strong conversion of the profitability to cash, a good indicator of the future strength of our business.
“This quarter will also see the finalising of our tier one voice provider (carrier interconnect) project. This is a strategic asset in our infrastructure portfolio that will help drive further growth in our Collaboration pillar.
“Our continued investment ensures that we remain committed to delivering on our strategy, and simplifying technology to empower business,” Omeros concluded.
In addition for the half year OTW revealed strong cash conversation (129%), as it neared completion of its Tier 1 voice provider (Carrier Interconnect) project, and continued to focus on the capabilities of its three solution pillars - Cloud, Connect and Collaborate.