Australian-based global software company FirstWave Cloud Technology reported a 34 per cent improvement in revenue while continuing to narrow its operating losses for the year to 30 June.
The company’s operating loss, excluding impairment was $5.86 million, which is 57 per cent lower than the $13.46 million reported in the previous year.
In addition to this loss, an impairment of $7.59 million was recorded against the value of its CyberCision asset as a result of a decision to invest more heavily in its network monitoring software.
FirstWave’s network monitoring business revenue increased to $5.32 million for the 12 months and directors believe this area of the business continues to offer substantial growth opportunities.
FirstWave CEO Danny Maher said the company continued to make good progress throughout the year with continued growth in revenue and a clear strategy to achieve its goal of being cash flow positive.
“Our network monitoring software business continues to build momentum in North and Latin America” he said.
“We have a considerable pipeline of opportunities which we look forward to converting into new business as our growth continues to accelerate.”
Following a detailed review of its future investment priorities and the continued strength of its network monitoring platform, the company has undertaken a repurposing of its development team that will deliver annual savings of approximately $1.5 million.
The savings are primarily due to making 11 positions redundant, mainly in its Australian-based CyberCision development team.
FirstWave said the repurposing reflects its short to mid-term revenue opportunities and does not impact its investment in its network monitoring software or its North American operations, where the company continues to see high growth opportunities.
Existing clients of the CyberCision platform will not be affected by the changes, and the company continues to see opportunities for the product, including the upcoming launch to the Australian government and large enterprise market of FirstWave’s sovereign email security platform that is compliant with the Australian Cyber Security Centre’s Information Security Manual (‘ISM’).
There were several new client wins during the year, including L3Harris, Arizona College of Nursing and Raytheon in North America, all of which licensed FirstWave’s network monitoring products in multi-year subscriptions.
Several existing network monitoring clients increased the number of devices under their licence agreements, including NASA in North America, which agreed to extend and expand its licence to support the Artemis missions.
Maher said the company had entered the new financial year with strong momentum.
“We have several opportunities in our pipeline that have the potential to accelerate progress significantly and we are pushing these to a conclusion at the earliest possible opportunity,” he said.