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Cirrus Networks Holdings (ASX:CNW) - CEO & Managing Director, Matthew Sullivan - The Market Herald
CEO & Managing Director, Matthew Sullivan
Sourced: Business News
  • IT solutions provider Cirrus Networks (CNW) has reported minimal impacts by COVID-19
  • But, as it believes COVID-19 will continue to negatively impact the economy, Cirrus has put cost reduction measures in place
  • So far Cirrus has actually found it's strengthening its relationship with the Federal, State and Local Governments, as well as the health and not-for-profit sectors
  • Despite these challenging times, Cirrus has continued to perform well to the end of March 2020 and revenue is 10 per cent more than what it was last year
  • The company hopes to emerge from the pandemic in a strong position but will continue to monitor market conditions
  • Cirrus has ended the day 9.52 per cent in the green with shares trading for 2.3 cents each

Cirrus Networks (CNW) has updated the market on its operations and actions, which have been minimally impacted by COVID-19.

Cirrus is an IT solutions provider that works with businesses to implement solutions that are the most cost-effective and provide long-term operational gain.

COVID-19

Cirrus' highest priority has been maintaining the health and safety of all staff and customers.

To do this, the company has put a COVID-19 action plan in place to ensure these standards are met and its services are still delivered.

As Cirrus is an IT service company, it has been able to seamlessly transition to remote working without impacting business.

Additionally, as Cirrus believes that COVID-19 will continue to negatively impact the economy it has put a number of cost reductions in place to ensure any short-term problems are dealt with in a timely manner.

Cirrus hopes to emerge from this in a strong position but it will continue to monitor the changing market conditions.

Impacts

So far Cirrus has seen minimal impact to its operations and is actually strengthening its relationship in the Federal, State and Local Governments, and the health and not-for-profit sectors.

These two areas contribute to more than 70 per cent of Cirrus' revenue.

Cirrus' customers in the retail and hospital sectors, such as restaurants and hotels, haven been significantly impacted.

However, despite these challenging times, Cirrus has continued to perform well to the end of March 2020.

The company saw revenue grow throughout Q3 and it is now 10 per cent more than what it was last year.

Cirrus' overall sales pipeline remains positive with the company already experiencing a strong amount of orders for Q4.

Cirrus is continuing to maintain its balance sheet with an increased positive net cash position and an improving cash balance of $3.2 million.

Reaffirmed earnings guidance

Despite the current uncertainty to the environment, Cirrus has not experienced any material change to its trading conditions or sales pipeline.

While results for the 2020 financial year are pending due to this final quarter, Cirrus believes that it will reach the lower end of its amended EBITDA (earnings before interest, taxes, depreciation and amortisation) which now sits at $3.6 - $4.1 million.

"We have not only ensured the health and well-being of our staff and customers but transitioned to a remote working model while continuing to deliver quality, value add customer focused outcomes," Managing Director Matt Sullivan commented.

"This, together with appropriate cost reductions and a solid balance sheet, ensures Cirrus is well positioned to assist clients in the recovery phase of the crisis," he added.

Cirrus has ended the day 9.52 per cent in the green with shares trading for 2.3 cents each in an $18.55 million market cap.


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