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3 tech shares with double-digit earnings growth

The technology sector remains one of the most exciting areas to invest in as technology continues to evolve and innovate new products and services.

Apple, Alphabet (Google), Microsoft, Amazon and Facebook are now the 5 biggest companies in the US.

While Australia doesn’t possess companies of that scale, there are numerous smaller companies operating in the technology space that are growing earnings by double digits and have excellent growth prospects.

Data#3 Limited (ASX: DTL)

Data#3 provides information technology services and solutions to a diverse range of enterprises and the public sector in Australia and the Asia Pacific. For the 2017 financial year, the company managed to grow revenue by 11.7% to approximately $1.1 billion with earnings per share increasing 11% to 9.99 cents a share.

The company’s growth in cloud based products and services revenue was particularly impressive soaring 71% to $170 million. Data#3 announced last week that it has entered a new partnership with global IT services company CenturyLink to deliver enterprise cloud solutions which should bode well for the future.

Altium Limited (ASX: ALU)

Altium’s industry-leading software is used by engineers to design printed circuit boards for electronic devices. The company should continue to benefit from ever-increasing demand for smart connected devices with its subscription pool being the largest and fastest-growing in the industry. In FY 2017, the software company saw its revenue increase by 18% to $US111 million. Margins also grew to a record level of 30% which assisted an impressive 21% rise in earnings per share to 21.7 cents. The company will also benefit from the depreciating Australian dollar with 48% of revenue earned in the Americas region.

Integrated Research Limited (ASX: IRI)

Integrated Research’s Prognosis software is used by over 1,000 organizations to monitor the performance of their IT infrastructure, payments and communications systems. The company maintains a diverse range of clients with companies such as Boeing, Citibank, GM, Intel and Visa using its software.

September’s agreement with Cisco to sell Prognosis on its Global Price List should also boost future revenue. Integrated Research grew revenue by 8% (13% at constant currency) to $91.2 million in 2017 with earnings per share rising by 16% to 10.9 cents. Furthermore, the company will also benefit from a depreciating Australian dollar with approximately 71% of revenue earned in the Americas region.

If you like these high-growth companies then you should also check out these disruptors.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

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That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Of the companies mentioned above, Motley Fool Contributor Tim Katavic owns shares in Boeing, Facebook, Alphabet (Class A) and Visa. The Motley Fool Australia owns shares of Altium. 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.

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