Key Concepts

Taking a stake in the Global Phenomenon.....Cloud Services

Amcom is a fast growing IT company which has recently expanded its data (fibre) network operations from just being WA based to across Australia.  This has increased Amcom's revenue generated just from data network over a staggering 21% in FY 2013.  Amcom's biggest client base are government and mining - both of which heavily rely on IT to do business.

The requirements of the IT industry seems to be changing from companies sinking in massive amounts of funds to purchase outright complex networking systems and equipment, and in turn personnel, to implement and maintain them over to 'hosted' services such as Cloud (iCloud for Mac users is a good example).  Let someone do the hard work and pay to update the equipment (which outdates very quickly)!

These services are what Amcom does best, and they are capitalising on maximising the use of their existing infrastructure and expertise with ventures such as partnering up with other industry leaders like Cisco Systems (I actually use this technology on a daily basis at work).  Partnerships like this are very rewarding for Amcom but of course......come with a BIG price tag - vendor loan of $4,772,000 to upgrade systems.

Summarisation of financial position shows overall net assets/equity of $120,646,000, an increase of 7.9%.

Non-current liabilities pretty much is the vendor loan from Cisco for the network upgrade.

Megan