MICROmega looks for growth in the cloud

MICROmega Holdings (MMG) is looking to boost its earnings in 2012 through its recent investment in cloud solutions.

On Monday (March 5, 2012), the group announced a rise in headline earnings per share to 20.94 cents, for the year ended December 2011, from 16.46 cents.

Revenue advanced to R775.48 million, from R682.31 million in 2010 – while revenue from continuing operations improved to R690.99 million, from R547.78 million before.

MICROmega announced a pre-tax profit of R8.424 million, down from R11.74 million, with profit for the year up to R11.83 million, from R7.81 million.

Through its subsidiary, Turrito Networks, MICROmega provides converged communications – delivering MPLS networks; hosting facilities; internet; and cloud computing services to large corporates and the SMME market.

Turrito is a new business that made no contribution to earnings in 2011. The cloud computing products developed over the past three years are housed within this business and were only taken to market at the start of the year.

Looking ahead, MICROmega said it is confident that it is well-positioned to deliver strong earnings growth in 2012.

“Our investment in cloud computing solutions over the past three years will contribute to earnings in 2012,” it said.

“We are leaders in the field of application delivery through the cloud onto multiple devices. Our products are unique, and since the launch of our first product this year we have secured twenty public sector clients and a number of large multinationals.

“We are currently performing live proof of concept trials at a number of institutions and corporates in South Africa.”

MICROmega said it remains uncertain as to the magnitude of the demand it will receive for its cloud products; however, the group is confident, based on the current reception, that this business will provide strong earnings growth for the group in future periods.

In early February, Turrito Networks signed a partnership agreement with supply chain management and global logistics firm, Super Group (SGP), to deliver cloud computing services.

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MICROmega looks for growth in the cloud