RealTime IT News

Melbourne IT Posts Strong Revenue Results

Domain name supplier and e-commerce infrastructure services group Melbourne IT has released its first quarter revenue results, which confirm the company's profit and high cash reserves.

EBIT of AUS$1.3 million (US$0.78 million) exceeded the forecast in the prospectus for the company's IPO by AUS$656,000 (US$393,600), or 98 per cent, the company told shareholders at its first annual general meeting this week.

Melbourne IT said profit has been driven by growth in the company's domain name registration business Internet Names Worldwide, and on current trends, the company expects to exceed the EBIT forecast for 2000 by $AUS4.7 million (US$2.82 million).

Melbourne IT chairman said the strong profit result was achieved while making investments for the future, including research and technology development, new corporate offices, stronger customer relationships, and the recruitment of over 70 additional staff.

"Our strong cash reserves and profit growth mean that Melbourne IT can grow organically without the need to raise additional capital," said Rob Stewart.

"However, this isn't to say that it won't be necessary or desirable to raise new capital - for example to fund an acquisition or the development of a major new line of business, but the company won't have to do so in order to fund the continued exponential growth of the domain name business," he said.