Data#3 has announced that Laurence Baynham will become chief executive officer and succeed current managing director John Grant when his contract finishes up on December 31, 2015.
Laurence Baynham has served in various roles during his 20 years as a member of the Data#3 team and is currently group general manager, a position he has held for 10 years.
The company said that through to December 2015, Grant will transition all current operational responsibilities and relationships to Baynham, complete certain strategic projects, and manage Data#3's acquisition interests.
"Following John's completion of his role as MD, he will maintain a strong involvement with the company through his positions as chairman of the board of Discovery Technology and a member of the advisory board of Business Aspect. After a suitable period, the board and John may consider his appointment as a non-executive director," said Richard Anderson, Data#3 chairman.
Off the back of this announcement, the company reported that its preliminary outlook of net profit before tax for the first half of the 2015 financial year will be in the range of AU$4.5 million to AU$5.5 million, up from AU$3.7 million reported during the previous corresponding period.
Grant said the increase remains primarily dependent on identified on-premises opportunities closing and being shipped in November and December.
"This projection underpins the full-year guidance to improve on last year's pre-tax profit of AU$10.9 million," he said.
Earlier this year, the company blamed the "competitive nature of the market and changes in some partner incentive programs" for the total revenue, product revenue, and services revenue decline it reported during the.
The results worsened when the company posted a 38 percent fall in net profit after tax for the.
Anderson noted that on-premises provisioning of software and hardware is an area where Data#3 has been successful in and is commoditising, but the revenue continues to be driven by new consumption models associated with outsourcing and cloud, which still "requires continuing investment and has yet to build scale".
Evidence of the company slowly paving its way into the cloud market was displayed in September, when Data#3 acquired business and technology consulting firm. Data#3 also bought an AU$2.5 million .