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DC Two Limited (ASX: DC2) (“DC Two” or the “Company”), a vertically integrated revenue generating data centre, cloud, and software business, is pleased to provide its quarterly report and Appendix 4C cash flow statement for the period ended 31 March 2023.
Highlights:
- Continued growth in cash receipts, up by ~40% compared to Q3 FY22.
- Strong reduction in operating expenses, down by ~44% compared to Q3 FY22.
- Strong acceleration of the Company’s “Next Phase of Growth” (ASX: 31 October 2022), with:
- Completion of the Attained acquisition. (ASX:4 April 2023)
- Progression of the disposal of non-core assets for $3m in cash. (ASX: 27 February 2023)
- Completion of the Attained acquisition. (ASX:4 April 2023)
- Dynamic progression of the Company’s operations within the cloud microservices sector.
- Company continues to assess strong opportunities for growth in critical technology sectors for the second half of fiscal 2023.
Quarter Overview:
During the third quarter of fiscal 2023, the Company has continued to focus on the transition to its next phase of growth (ASX: 31 October 2022). Management has implemented critical strategic initiatives aimed at building a unique technology offering into the broader cloud microservices IT sector.
In particular, the Company continued the strategic review of its operations and existing core assets, to enable an effective transition to its next phase of growth via its stated four-step strategy (ASX: 2 May 2022, 31 October 2022, and 14 December 2022):
This overarching strategy has delivered a strong quarter, with:
- Cash receipts growing by ~40% compared to Q3 FY22.
- Operating expenses down by ~44% compared to Q3FY22.
- Total revenue for the quarter was ~$1.1 million, up by ~21% compared to Q3 FY22.
M&A Overview:
- Attained:
Following the quarter end, the Company announced the successful completion of its acquisition of Attained Group Pty Ltd (“Attained”) and its expansion beyond data centres and infrastructure. (ASX: 4 April 2023)
Attained is a profitable Australian leading managed IT and cloud services provider, deploying and managing technology solutions across a variety of enterprises to improve performance and efficiency. The acquisition is expected to accelerate the Company’s strategic move into the broader cloud microservices IT sector, leveraging the IT infrastructure foundations built over the last three years.
The acquisition of Attained is deemed an initial, strategic steppingstone for the Company, covering several technology layers, deemed critical to build an end-to-end market offering. These include, among others:
- Cyber Security.
- Managed IT services.
- Cloud services.
- Network and Voice solutions.
During the last three years, Attained has demonstrated its ability to generate profit while achieving an average of ~$3 million in unaudited revenue. Via this transaction, the Company expects to drive further growth by leveraging its IT infrastructure foundations built over the last three years.
- Disposal of non-core assets for $3M in cash:
On 27 February 2023, the Company announced the proposed divestment of the DC Modular business assets to D Comm Infrastructure Pty Ltd, a subsidiary of D Comm Ventures Pty Ltd, a leading Web 3.0 technology company, to generate $3 million in cash (before costs).
The DC Modular business assets have been identified as non-strategic towards the Company’s tech- focussed growth objectives. The completion of this transaction is subject to conditions precedent.
The Company expects to settle this transaction by the end of the fiscal year.
Outlook:
Aligned with its transition to the next phase of growth (ASX: 31 October 2022), the Company will continue to assess several M&A growth opportunities aimed at building a unique technology offering, within the cloud microservices sector.
The Company intends to focus on critical technologies and services towards this goal, including a continuous assessment on non-critical divisions.
Click here for the full ASX Release
This article includes content from DC Two Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
DC2:AU
Next-generation Hadrian X® Completes US Site Acceptance Testing
Highlights
- FBR receives confirmation from CRH Ventures that first next-generation Hadrian X® successfully completes Site Acceptance Testing at Fort Myers facility in Florida
- Confirmation received from an independent structural engineer that the structure is consistent with design requirements and meets applicable building standards
- FBR to receive next tranche of non-refundable payment from CRH Ventures of US$600,000 under Demonstration Program agreement
- Construction of the first house in the Demonstration Program to commence shortly
An independent structural engineer provided confirmation that the walls of the test build were consistent with the design and met applicable building standards.
Completion of Site Acceptance Testing triggered a US$600,000 payment by CRH Ventures to FBR and the commencement of the Demonstration Program. The Demonstration Program requires FBR to construct the external walls of five to ten single-storey houses utilising the next-generation Hadrian X®. The Demonstration Program will commence shortly.
The Demonstration Program will be deemed complete when FBR completes construction of its five houses plus up to five houses added to the program by CRH Ventures, with all houses to be certified by an independent structural engineer. Upon completion of the Demonstration Program, FBR will receive a payment of US$400,000 from CRH Ventures under the Demonstration Program agreement. The completion of the Demonstration Program also marks the commencement of a 45-day period for CRH Ventures to exercise the option to form a joint venture for the delivery of Wall as a Service® in the United States.
This announcement has been authorised for release to the ASX by the FBR Board of Directors.
Click here for the full ASX Release
This article includes content from FBR Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
