DUG Technology (ASX:DUG) share price flying 17% higher today

As the DUG Technology Ltd (ASX: DUG) share price soars more than 17% today, we take a look at what the company does and its recent results.

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The DUG Technology Ltd (ASX: DUG) share price is soaring today, but with no news out from the company, it might be worth taking a look at recent developments in the company.

For some, it might be the first time even hearing of DUG before, so we'll run cover what the company does at a high level.

At the time of writing, the DUG share price is trading 18% higher to $1.14.

DUG is super smart

Listed in August last year, DUG is a technology company that provides high-performance computing as a service (HPCaaS). In this day and age processing power is required by many industries. Some of the world's most complex problems are being deciphered not by people in a room, but by supercomputers in specialised facilities.

Originally founded in 2003, the company has expanded internationally. DUG now boasts a global network of 4 supercomputers; playfully named BUBBA, BAZZA, BODHI, and BRUCE. In 2019 the company began broadening its client base outside the resource sector, branching out to radio astronomy, academic research, academic institutions, etc.

Interestingly, DUG's computer rooms are some of the 'greenest' in the world. Instead of using the commonly used air-conditioning method to cool its supercomputers, DUG utilises a specialised dielectric-fluid cooling solution.

Recent performance

The company recently reported its first-half results in February. According to the report, DUG has increased its focus on software solutions to include its high-performance service offering in its 'McCloud' platform. McCloud is the business's customer-focused processing on-demand platform. As a result, HPCaaS revenue experienced an 86% uplift half-on-half.

While HPCaaS revenue increased, other segments experienced a reduction — leading to an overall revenue fall of 9.8% year-over-year. DUG blamed COVID-19 for delaying projects in its services division.

Furthermore, DUG's bottom-line losses ballooned to $4.4 million, compared to a $2.5 million loss the prior year. However, the report indicated an improved outlook for the company as it continues to expand its offering to other industries.

DUG share price recap

Since the company listed in August last year, it has been a disappointing ride. Even accounting for today's strong rally, the DUG share price has slumped 24% from its ASX debut. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has returned more than 10% over the same timeframe.

Based on DUG's current share price, the company now has a market capitalisation of $96 million.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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