DXN shrinks HY loss post-restructure

Prefabricated modular data centre provider Data Exchange Networks (DXN) has shaved a significant dent off its half-year losses following a company restructure.

The publicly listed company saw its net loss after tax improve by 62 per cent from $2.2 million to $838,392 for the six months ending 31 December 2023.

DXN made total sales revenue of $4.5 million for the period, an increase of 19 per cent year-on-year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) sat at $723,469, a 491 per cent increase year-on-year from $122,414.

“We are pleased to see the increase in the revenue and underlying EBITDA of the business in the first half of FY24,” said DXN CEO Shalini Lagrutta. “The re-negotiation and exit of the Sydney data centre lease is a key outcome for the company and will save DXN approximately [$1.4 million] per year in lease charges of the remaining nine years of the lease.

“The restructuring program that DXN commenced in FY23 continues to see positive results, with the intent of DXN reaching operating cash flow breakeven and profitability during CY24.

DXN told shareholders it has secured 50 modular data centre sales since 2020 with demand for modular cable landing stations and prefabricated data centres continuing to grow in the region. One such station is located in Timor-Leste, with DXN signing a US$1.4 million contract with the country’s government in September for the supply and installation of a cable landing station.

“Prefabricated custom-built modular data centres have strong structural demand with sales currently averaging one per month ($1-2 million revenue each),” the company’s report said.

“The new customer pipeline has been materially expanded and additional new orders are expected during the remainder of FY24.”