The share price of adjustable bandwith technology business Megaport Ltd (ASX: MP1) is up nearly 2% in morning trade after the company reported its results for the quarter ending June 30 2017. Below is a summary of the results.
- Revenue of $3.47 million, up 18% over the last quarter
- Net operating cash loss of $4.57 million
- Net operating cash loss for the full year of $24.6 million
- Company has a net cash position of $21.2 million
- Total monthly recurring revenue at quarter end of $1.22 million
- 165 total data centres at end of quarter
- Total ports at quarter end up 10% to 1,828
Megaport looks to be moving in the right direction in growing its business to help customers adjust their use of online connectivity and data according to their demand.
In effect its network can provide businesses cloud and data centre services on a pay as you go basis in terms of capacity, speed, pricing and contract length.This ability to adjust bandwidth may help businesses save money by allowing them to adjust their payments for internet capacity according to different time periods, or adjustable contract lengths for example.
Megaport has a market valuation around $153 million and the share price has hit levels between $1.82 and $3.19 over the past year as investors struggle to assess its potential to deliver consistent profit growth. It is part of multiple companies part-owned by tech entrepreneur Bevan Slattery who also founded Asia-focused fibre-optic cable network startup Superloop Ltd (ASX: SLC).
