CSG achieves revenue of $224M for FY15
End to end provider of managed print solutions, CSG (ASX:CSV), has achieved a revenue of $224.3 million for its financial year 2015 results. This marks a growth of 13 per cent for the company, following revenue of $199.3 for its 2014 financial results.
CSG CEO, Julie-Ann Kerin, said the results are a testament to the execution on its strategy to expand its portfolio of products and services to include non-print offerings.
“We have had a successful first year in our partnership with Samsung. In the second half of FY15, 10 per cent of all our deals in Business Solutions Australia included the sale of non-print technology,” she stated.
The Business Solutions division in Australia grew revenue by 19 per cent, largely driven by its technology-as-a-service sales and continued acquisition of new customers. The company said, in a statement, that the average sale of non-print technology was $32,000 in revenue per customer in the second half of FY15.
As for the Enterprise Solutions business, it achieved 28 per cent revenue growth and won three major print-as-a-service contracts in FY15. The total contract value of these agreements is in excess of $40 million over the course of five years.
The Finance Solutions division lease receivable book increased by 30 per cent to $210 million. In addition, the company has launched a range of new solutions that will be available from September this year. This new suite of products aims to deliver a single source of technology to customers across its Business Solutions and Enterprise Solutions businesses.
“The solutions also scale up to suit the needs of the enterprise customer that requires a tailored approach. The way we will go to market and support these solutions is the real differentiator for our customers,” Kerin said.
In addition, the company has declared that it will be acquiring New Zealand-owned IT services business, CodeBlue, for $NZ5 million in cash and an additional $NZ2.7 million in contingent cash payments.
The buyout also includes an earn out consideration based on FY17 performance, which comprises a cash and script component and the total consideration (including cash and contingent cash payments) is capped at $NZ15 million.
Kerin claimed the acquisition of CodeBlue provides a platform to support the CSG strategy in A/NZ. “CodeBlue branches have managed IT contracts, with more than 350 customers in New Zealand and a successful track record of delivering IT managed services and migrating customers to Cloud-based products.
“It is proposed CodeBlue will provide the ongoing support service delivery unit for CSG technology customers across A/NZ,” she said.
On an Asia-Pacific level, the company has also launched a partnership with Cloud-based unified communications and contact centre solutions company, 8x8.
As part of the agreement, CSG will serve as an 8x8 channel partner for Asia-Pacific and sell the company’s entire portfolio of enterprise cloud communications solutions to the A/NZ markets–including its Virtual Office and Virtual Contact Centre solutions.
As part of its 8x8 go-to-market strategy, CSG will launch a new service to on-board employees with a turnkey offering that bundles 8x8 Cloud communications solutions with telephony hardware, a laptop, online file storage and back-up in a complete end-user package.
8x8 CEO, Vik Verma, said the partnership with CSG allows 8x8 to further extend its footprint and better serve its customers in Asia-Pacific as part of its ongoing global reach strategy.
“The growing demand for enterprise Cloud communications in key international markets such as A/NZ has become critical for our customers. CSG has a broad footprint across A/NZ, enabling us to offer an enterprise Cloud communications solution to a broader customer segment,” he added.
For FY16, the company expects revenue of more than $225 million, which represents more than 14 per cent growth from FY15.
