Credit: Dreamstime
Pre-fabricated modular data centre specialist DXN saw profit after tax sink $3.88 million into the red as revenue jumped 61 per cent to $5.7 million in the first half of FY22 ending 31 December.
The company told shareholders that its Melbourne data centre legal dispute had been resolved, “eliminating a significant negative cash drain on the company and inventory housed in the facility was sold to Wingu Africa.”
The resolution incurred one-off expenses, which impacted margins in the first half.
DXN CEO Shalini Lagrutta told shareholders it produced a significantly improved performance in the first half of FY22, benefiting from the new edge-focused strategies implemented in the last financial year.
It has booked a record $7.9 million worth of new modular data centre contracts and added “significant blue-chip customers” to its portfolio across key market segments including mining, edge data centres and cable landing stations.
The company expects the modular data centre manufacturing business to maintain its strong sales momentum with new and repeat customer demand reflecting its edge data centre reputation in the market, Lagrutta said.
“DXN also expects to see growth in its data centre operations revenue through the recently acquired Darwin data centre, the introduction of new products and solutions across our data centre network and strategic partnership activity with DC Alliance’s Perth-based data centre, Pier DC,” Lagrutta said.
“We expect further growth in subsea cables within the region, as well as increases in automation in the resources sector and new applications of edge data centres.
“These will drive greater demand for DXN’s modules. As an Australian manufacturer, DXN is also positioned well for national opportunities in defence and subsea.”
Lagrutta said project management services were an important sales facilitator for the company.
Since the end of December, DXN inked a new contract with Multiplex worth $3.5 million, taking its modular data centre manufacturing division contracts to $12.5 million in the year to date.
