Harris Technology surges as profit upgraded by more than 50%
Shares in diversified tech enterprise and personal protective equipment distributor, Harris Technology Group (ASX:HT8) opened 35% higher on Wednesday morning after the company upgraded its profit guidance.
In May, the company forecast revenues of $13 million and a pre-tax profit of $700,000 for fiscal 2020.
However, just one week out from year-end, management has been able to substantially upgrade profit guidance to $1.1 million.
Importantly, this is a significant turnaround from the fiscal 2019 pre-tax loss of $732,000.
Year-on-year comparative figures also highlight the impressive top-line growth that the company is achieving with revenues up from $9 million in fiscal 2019 to a projected $13.5 million in fiscal 2020.
The revised profit and revenue forecasts come on the back of confirmation of strong sales in the month of May and June 2020 to date.
Commenting on the key drivers behind the group’s improvement, managing director Garrison Huang said, “We are pleased by the substantial profit turnaround for FY2020, which has been further upgraded since our previous forecast announced on 26 May 2020.
‘’Strong sales growth continues in our IT division, driven by our strategy of product diversification including mobile accessories, IT consumable products such as inks and toners and gaming products.
“We are also looking to further build on the success of our personal protective equipment (PPE) division, Pro-Hygiene, in the year ahead.”
Anti-virus software emerging as a key source of growth in 2021
Of note, sales of antivirus software have increased as a result of HT8 undertaking a number of marketing campaigns with ESET Australia.
These campaigns included free offers to customers designed to assist them during the COVID-19 pandemic.
Harris subsidiary, APCA Trading, is a platinum partner of ESET Australia, one of the leading antivirus end point vendors in the world.
The company expects that sales of ESET internet security and anti-virus software will increase in coming months.
Harris Technology's broader range of technology products includes HP, Microsoft, Adobe, Lenovo, Brother, Toshiba, Samsung, Asus and Sony, highlighting its strong and trusted relationships with leading brands in the field.
The company has successfully established its own e-commerce site, as well as having a presence on Amazon Australia, Catch, Kogan and eBay.