Cirrus bags $10M in federal deals for 2021

Cirrus CEO, Matt Sullivan

Cirrus Networks has scored an extra $10 million in Federal Government contracts for the upcoming year. 

In the first of these, Cirrus and Deloitte collectively won a $1 million cyber security contract with the Department of Defence. 

The duo will architect and implement an Integrated Continuous Assurance (ICA) system for Defence over the next year. 

The two partnered through an open tender with Cirrus describing the project as representing “a significant opportunity to further strengthen the department’s cyber security posture”. 

Cirrus also won a one-year contract to deploy Checkpoint technology for Services Australia in a deal worth $3.5 million, marking the first time the provider has worked worth the department.  

A further $4 million worth of projects containing support, service and equipment resale and professional services were also won with three unnamed departments. 

The wins coincide with Cirrus also gaining an extension to its three-year storage contract with an unnamed federal department, which it won in January 2019. 

Originally Cirrus won a three-year deal worth $5 million to design, implement and support the agency’s primary and secondary data storage. 

Now it will carry on for a further 12 months, finishing in December 2022, adding another $3 million to its revenue. 

“It has been a great start to the FY21 financial year and we are confident it will be another strong performance for the half,” Cirrus managing director Matt Sullivan said. 

“As a growing Australian ASX listed company we are honoured to be working as partners with bluechip Australian companies and government on building the road to Australia’s economic recovery.” 

As part of a market update, Cirrus told shareholders it now expects to post more than $50 million in revenue for the next half year. 

Its wins plus a “continued focus on working capital management” is expected to give Cirrus an excess of $6.5 million as of 31 December, leaving it debt free. 

At the end of the last financial year, Cirrus saw its revenue rise by 20 per cent compared to the prior 12-month period. 

The company’s managed services revenue saw a lot of action in the second half, growing, half-on-half, by 17 per cent, to $6.3 million. 

Not only did the company’s managed services revenue grow, associated gross margins for the division increased by 22 per cent, from $3.7 million in FY19 to $4.6 million in FY20, a result of the company’s strategic focus on growth through higher margin service.