Written by The Edge
DMX Technologies Group, the integrated network infrastructure and digital media solutions provider, says it posted a 81.6% y-o-y jump in net profit to US$2.9 million ($3.9 million) for the three months ended 30 June 2010 (2Q10).
DMX Technologies says the achievement was built upon strong sales growth across all its business segments, which helped push revenues to an all-time high of US$58.6 million in 2Q10 from US$48.8 million in 2Q09.
The Infrastructure Enabling division continued to be the key revenue driver of the group, contributing US$35.7 million or 60.9% of total revenues in 2Q10, an increase of 13.8% y-o-y.
In addition to the traditional Infrastructure Solutions provided by the division, DMX’s foray into Managed Services has also started to bear fruit.
The nascent Managed Services segment rew 45.8% y-o-y to US$3.9 million in 2Q10, as it benefited from the growing trend of enterprises outsourcing their IT network protection needs.
In May 2010, DMX secured a contract with China Mobile to enhance the security and performance of their portal in Inner Mongolia, adding another prestigious name to DMX’s growing list of clients.
Revenue growth in the group’s Digital Media division outpaced its Infrastructure Enabling division, increasing by 23.9% to US$22.9 million in 2Q10 from US$17.4 million in 2Q09. The group continues to find growing market opportunities for its full range of integrated solutions in the digital media age.
Driving this demand expansion has been the robust growth of the Chinese cable TV and Internet Protocol Television (IPTV) industries. To date, the group has tie ups with a host of established cable operators such as Beijing, Jiangsu, Shandong, Hubei and etc; granting them access to more than 30 million subscribers. The ongoing migration from analog cable TV to digital cable TV has helped fuel the geographic contribution of China, which increased by 24.5% y-o-y to US$43.5 million or 74.2% of 2Q10 revenue.
In light of the higher contributions from its Managed Services segment and Digital Media division, the group’s gross profit margins improved from 22.3% in 2Q09 to 24.0% in 2Q10. Gross profit improved 29.1% from US$10.9 million in 2Q09 to US$14.1 million in 2Q10.
Dividend : None
