Shares of Senetas Corporation Limited (ASX: SEN) skyrocketed as much as 39% when the market opened this morning following a very positive update from the group. They’re trading 33.3% higher at 12 cents at the time of writing.

Hardly a household name, Senetas provides high assurance encryption hardware designed to protect data while it is travelling between sites. Its customers include governments and businesses such as cloud, data centre and network service providers.

Indeed, the shares have been on a rollercoaster ride over the last 12 months, trading as high as 22 cents in July 2015 and a low of just 8.7 cents as recently as yesterday.

In a similar situation to that facing other small-cap tech businesses such as Prophecy International Holdings Limited (ASX: PRO), investors were worried about slowing growth at a time where growth should really have been ramping up.

Operating revenue rose just 7% during the first-half of financial year 2016, while net profit after tax (NPAT) actually fell 18% to $1.59 million. It also guided for full-year net profit before tax (NPBT) of $5 million at the time.

However, a stronger-than-expected sales result in June has significantly boosted that result. Senetas now expects NPBT to be between $6.8 million and $7.1 million, topping that guidance by between 36% and 42%.

The company also said its new 100Gbps high assurance encryptor is due to commence customer testing in August, with a release planned for later in 2016. Investors can expect more information regarding the full-year results around 26 August, but until then, things are certainly looking better for Senetas.

Learn How 1 Man Turned $10K Into Over $8 Million

Discover how one man turned a modest $10,600 investment into an $8,016,867 fortune. Learn more about this man and how you can start down the path toward financial independence. Simply click here to learn more.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia owns shares of Prophecy International Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.