Amcom raises FY11 guidance

Integrated telecom services provider Amcom (ASX:AMM) is expecting at least a 25 per cent growth in FY11 profit, as it builds out a new suite of cloud services

Integrated telecom and data carriage services provider, Amcom Telecom (ASX:AMM), has upgraded its earnings forecast for FY11.

The company is now expecting a net profit of at least $13.2 million, which would be a 25 per cent increase on its earnings from FY10.

Including the contributions from its 23 per cent stake in ISP iiNet (ASX:IIN), reported net profit is expected to be at least $21.6 million. This projection is also up 25 per cent from FY10.

In an investor presentation, Amcom added that it expects to leverage cloud IT services to deliver growth in FY12.

The company told investors plans to launch cloud services developed through a partnership with BlueFire in May 2011, with an initial offering of 11 services.

The services, under the Your Private Cloud brand, will include email and web security, cloud storage, backup and disaster recovery, and SaaS suites such as a hosted desktop service.

Also planned are infrastructure as a service offerings including remote infrastructure management.

The operator in February said its first cloud foray – the $6.5 million acquisition of IP Systems – had helped it increase its revenue 43 per cent and its profit 30 per cent in 1H11.

The commencement of billing for a Northern Territory government contract, which Amcom told investors was worth $20 million over five years, also contributed to the half-year's growth.

Amcom said it had already sold $500,000 of additional services under the deal, and that the arrangement presents strong growth opportunities starting in the second quarter of FY12.

Amcom told investors that goals going forward are to sell more fibre services, and more on-network services that require less capex outlay. It will also seek to increase cross-selling to its business customers.

AMM shares grew 3.45 per cent on Tuesday to $0.300.

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