Small-cap technology business Senetas Corporation Limited (ASX: SEN) has reported its full-year earnings results, revealing a 46.8% lift in revenues and a 35.8% rise in net profit to $4 million.
So What: Recognising the need for data to travel securely between sites, rather than simply protecting it whilst at rest, Senetas is a company that provides high-speed data encryption hardware to businesses and governments.
The company enjoys strong margins (a gross margin of 83% and pre-tax profit margin of 37%), has no debt and $15.9 million cash on hand, putting it in a good position to continue growing over the next 12 months.
It said: "FY2015 has seen the company continue its significant investment in research and development (R&D) and building stronger relationships with its master distributor, technology partners and end customers. These are critical factors to ensure Senetas builds both the capability and relationships necessary to drive future revenue growth."
Now What: Currently trading for 17.5 cents, Senetas' shares have surged 224% since the beginning of the year, although they remain more than 20% below their 52-week high price of 22 cents. Long-term investors could certainly look to take advantage of the recent dip in share price with further growth anticipated over the coming years.
