Upstart ASG nudges the big boys
Aussie IT services group ASG has thrown down the gauntlet publicly to its much larger international rivals as it posted steep jumps in revenue and profits for the past financial year.
Geoff Lewis
(Credit: ASG Group)
"Tier 2 providers such as ASG who have positioned themselves as proactive, responsible and flexible will benefit in a marketplace that was previously dominated by the likes of IBM, Electronic Data Systems (EDS) and Computer Sciences Corp (CSC)," ASG said in its annual results briefing documents released this morning.
"During the past few years in Australia, selective sourcing — the breaking up of outsourcing 'megadeals' into smaller ones — has generally benefited the smaller local players in the IT services market."
The comments came as ASG announced that — despite the global economic crisis that had led many pundits to predict doom and gloom for Australia's ICT industry — its revenues for the financial year ended 30 June had risen 17 per cent over the previous year, to reach $130.6 million. Net profit rose 25 per cent to reach $11.3 million.
"This record result is particularly pleasing given the significant slowdown in the Australian economy and some parts of the IT services market," said ASG managing director Geoff Lewis. "While we expect conditions in the broader IT services market to continue to be challenging in the year ahead, our sector of the market continues to expand and we are forecasting further growth in our revenue and earnings in financial year 2010."
The company's performance impacted Lewis' own income, with the executive receiving a $333,000 total jump in remuneration over the previous year to reach $1.33 million. Most of the extra amount was in cash salary and bonuses.
Several of ASG's other executives also received hefty bonuses; chief officer of sales and strategic operations Murray Rosa won a $176,000 increase to hit almost $566,000, while national practice chief officer Gerald Strautins picked up a $167,000 increase to reach $456,000.
Over the past year ASG has revealed a number of large wins progressively; for example, in June 2009 it picked up a $13 million application management deal with Qantas; and the Federal Government's Civil Aviation Safety Authority allocated ASG $8 million in a managed services deal.