ABN 21 099 104 1224th August 2005ASX AnnouncementPIPE Networks...

ABN 21 099 104 122
4th August 2005
ASX Announcement
PIPE Networks Limited 2005 Preliminary Results
PIPE Networks (ASX:PWK), a leading network infrastructure provider has released its first
full year trading results since its listing on the Australian Stock Exchange in May 2005.
The Company achieved total revenues of $4,715,732 with a net profit after tax from ordinary
activities of $845,808 meeting prospectus EBIT growth forecasts of 35% over the half year
results.
Significant commercial success has been achieved since the Company’s initial public offering,
including an earlier than expected success in securing significant dark fibre contracts with
leading Australian broadband providers Netspace and Internode with the former being the
catalyst to commence construction of a 40,000 metre fibre optic network in Melbourne.
As an example of this success, PIPE Networks has secured $4.7M in new contracts last
quarter. In the majority of circumstances, these contracts are based over 3-5 years with most
of the contract value being recurring monthly revenue over that period. Our success in being
awarded these contracts underpins our momentum in growth of recurring revenues.
PIPE Networks is actively engaging in partnerships with leading companies with the view of
providing future revenue opportunities and growth. A recent example of the pro-active
approach to future opportunities, the Company has entered into an arrangement with
Springfield Land Corporation to work together with the vision of extending PIPE Networks fibre
optic network and services to Springfield. While at this time there is no guarantee of revenue
being generated from these discussions, the Company believes that this offers an excellent
medium to long term opportunity for expansion. Springfield is located approximately 20km
south-west of the Brisbane CBD and lies on the western corridor linking Brisbane to Ipswich.
Similar discussions are taking place with respect to our Sydney and Melbourne operations.
In light of recent contracts success and the expansion of the capacity of the network on offer,
PIPE Networks Limited expects revenue growth between 80-90% and profit after tax growth of
between 50-60% for financial year 2006.
PIPE Networks Limited will continue to review a number of opportunities that are available, or
may become available, potentially leading to further expansion of product offerings or
acceleration of revenue growth from existing infrastructure.
About PIPE Networks
PIPE Networks is a public listed company (ASX: PWK), headquartered in Brisbane, with
branch offices in Sydney, Melbourne, Adelaide and Hobart.
PIPE Networks provides independent technology solutions for Australian clients, and has
three lines of business: The Company operates the nation’s largest Internet Exchange, with a
network across six capital cities serving some of Australia’s largest content and internet
service providers. PIPE Networks also builds and operates one of Australia’s largest
metropolitan fibre optic networks, offering clients in Sydney, Brisbane, Melbourne, Adelaide
and Perth access to the company’s “Dark Fibre” service.
ABN 21 099 104 122
In addition, PIPE Network clients trust in the company’s ability to provide secure sites for their
IT equipment, giving them more options for primary, backup or disaster recovery sites. As a
young, agile company, PIPE Networks is able to foresee and quickly respond to client needs.
About Dark Fibre
Dark fibre is literally ‘unlit’ optical fibre that allows users to build their own network and equip it
in a manner that best suits their business. It enables all forms of data to be transmitted on a
single fibre pair of almost limitless capacity. The result is a very high bandwidth
communications pipeline supporting the seamless flow of data across your network, whatever
the location.
Because modern IT equipment comes with the ability to drive a fibre network, dark fibre can
be leased to customers without any need for a carrier to provide framing, modulation or other
signal on the fibre. This provides customers with complete flexibility over the technology,
equipment or protocols they run on their network, together with the almost unlimited
bandwidth potential of optical fibre and point-to-point privacy and security.
ENDS
For more information: Bevan Slattery
Managing Director
PIPE Networks Ltd
T: 07 3233 9811
[email protected]