tTech’s earnings dip as customers postpone projects
IT service provider, tTech Limited saw its profit decline by 45 per cent during the three months ended June 30, 2020, down from $15.7 million in the comparative quarter of 2019.
Revenue declined by eight per cent, totalling $82.7 million during the quarter under review.
The earnings dip was mainly due to several projects put on hold and postponed for later in the year by customers, tTech, led by CEO Christopher Reckord, stated in the company’s recently released financial statements.
Reckord noted that during the period under review, team members shifted to working remotely, with the company’s service desk resolving the majority of the support issues raised by customers.
At the same time, tTech has been using webinars to deliver training on data protection, IT compliance for privacy, consumer payment behaviour, cybersecurity risks, among other topics.
“Feedback has been very positive resulting in an increase in our prospect pool of potential revenue opportunities for tTech,” Reckord said.
He noted, “Due to the high interest in the impact and ramifications of the new Data Protection Act (DPA), we repeated the webinar on that topic and we are receiving increased interest in our Data Privacy Solutions-As-A-Service.”
He said tTech’s project pipeline is steadily growing, fuelled by companies looking to enable a more flexible work environment for their employees, the need to remotely manage their IT environments and the increasing importance of securing their devices, data and networks.
Meanwhile, Reckord asserted that tTech's diversified portfolio of customers spared the company from the worst scenarios projected during the near-lockdown period between March and June.
“Some projects were put on hold by customers, but new opportunities presented themselves as more organisations realised that they needed assistance to move their IT operations to the cloud or to enable their staff to work remotely from home,” he said.
For the third quarter, the company head said he expects a few of the postponed projects to be restarted.
“Our online marketing activities have contributed to more prospective customers becoming interested in our services which has resulted in a healthy pipeline of real opportunities,” he said.