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- Tech company Vortiv (VOR) is expecting another record revenue result, as cyber security threats grow demand for its services
- Vortiv’s estimated earnings before interest and taxes (EBIT) for the June quarter are $500,000 to $600,000
- Meanwhile, Vortiv have also completed the carrying value review of its 24.89 per cent holding in TSI India, downgrading its value to $5.5 million
- Vortiv shares are trading for 23.5 cents per share, a rise of 27 per cent
Recent cyber security threats identified by the Australian Government have helped grow tech company Vortiv’s (VOR) profits.
The tech company’s cybersecurity business has seen strong demand from customers looking for solutions, as cyber threats continue to emerge.
Vortiv says the additional demand will allow it to deliver another quarter of record growth, with revenue from the June quarter expected to be between $3.6 million to $3.8 million in total.
That puts its earnings before interest and tax (EBIT) for the same quarter at between $500,000 and $600,000.
Vortiv used today’s announcement to outline its cybersecurity strategy, which involves focusing on the government and financial sectors, who it says make up 24 per cent and 48 per cent of its revenue respectively.
Meanwhile, the company also announced an independent evaluation of its 24.89 per cent holding in payment solutions company TSI India has been completed.
Vortiv’s almost 25 per cent stake in TSI India has been evaluated at being worth between $5.5 million and $8.9 million, with a midpoint estimate of $7.2 million.
However, due to current global conditions, the Vortiv Board has elected to adopt the lower value estimate of $5.5 million.
That’s down from a previous estimate of $9.7 million in the year ending March 31, 2019.
Despite the downgrade in value, Vortiv shares are trading at 23.5 cents each, a rise of 27 per cent.
