Bulletproof posts AU$1.5m loss for first half of FY17

The first half of FY2017 saw Bulletproof cull 30 people from its workforce and post an underlying after-tax loss of AU$1.5 million.
Written by Asha Barbaschow, Contributor

For the first half of the 2017 financial year, cloud services provider Bulletproof has posted an underlying after-tax loss of AU$1.5 million.

Revenue for the six-month period came in at AU$24.5 million, which represented a 13 percent increase over the corresponding period a year prior.

Bulletproof CEO Anthony Woodward attributed the company's seven-figure loss to a number of things, including AU$809,000 in restructuring costs.

"Despite some headwinds in the first half of FY17, as a carryover from the second half of FY16, management have worked hard to transform the company's bottom line performance through consolidation, right-sizing, and cost reductions in the order of AU$4.5 million per annum," Woodward told shareholders on Thursday.

"Our new service and product offerings are expected to see a return to sustainable revenue growth performance, with the company even better positioned to take advantage of market demand for our services going forward."

Bulletproof said that the half-year results are somewhat impacted by customer-side project reductions and delays, but expects these delayed projects to deliver strongly in the second half of the 2016-17 financial year.

The six-month period also saw the organisation cut its headcount by approximately 30 people.

During the first half of the 2017 financial year, Bulletproof introduced a number of new products and services to its multi-cloud portfolio, which included Microsoft Azure-based support services and consulting services.

Bulletproof also signed with the Victorian Department of Environment, Land, Water and Planning; UBank; and LJ Hooker during the six-month period.

Speaking with ZDNet in December, Woodward said Bulletproof was expecting half-year revenue to reach AU$24 million with full-year revenue to tip AU$54 million.

At the time, Woodward explained the forecast was largely based on recurring annual revenue generated from existing customers.

Bulletproof found itself listed on the ASX after performing a reverse takeover of Western Australian-based mining company Spencer Resources in early 2014.

"The opportunity in the Australian market -- a lot of it is untapped from our perspective. We feel there's really a lot more to do in the Australian market that's worth pursuing and customers absolutely value, when you're talking about managed services of their critical data in the hands of an outside party, having that organisation on the ground in Australia," Woodward told ZDNet at the time.

"The listing lets us execute our longer-range strategy and we're also in a good position at the moment because of the opportunities in the rapidly growing cloud services market in Australia."

For the 2016 financial year, Bulletproof reported AU$0.8 million in after-tax profit, a 51 percent increase over the same period a year prior. EBITDA came in 13 percent higher year on year to AU$4.7 million.

Revenue reached AU$47.2 million for the 12-month period, up 69 percent on the previous financial year, with 31 percent of it driven by organic growth, while sales revenue nearly doubled its 2015 figure, coming in at AU$47 million.

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