Shares in Pipe networks (PWK), provider of telecommunication services, rose up as much as 11.3% after upgrading its guidance for the 2007/08 financial year.
The Brisbane-based company said it expects revenue for the full year to 30 June 2008 be between $33 million and $35 million, due to continued growth in both datacentre and dark fibre products.
"The biggest change in our business and quality of earnings over the past six to nine months has been the considerable growth in sustainable new, monthly-recurring revenue, particularly in the corporate and government markets," Managing director Bevan Slattery said.
"With the extensive reach of our network leading to a greater number of services sold being ‘on-net', we are seeing higher margins for this new business and improved profitability."
The company said net profit after tax is expected between $7.0 million and $7.4 million.
Pipe stock grew 7.5% to $4.73 by mid afternoon.
Pipe Networks provides telecommunication services to internet service providers, telecommunication carriers and the corporate marketplace. The company also operates a fibre optic-based network, servicing the CBDs and metropolitan areas of Sydney and Brisbane.
