ISA Holdings has bounced back after reporting "uncharacteristically poor" results in the 2013 financial year, and has improved its revenue mix.
The company, which on Friday published results for the year to February, grew turnover 48%, to R75.2 million, of which recurring revenue made up 62% and new solution sales - or large deals - accounted for the balance.
"Most pleasing was the healthy contribution to revenue from the greater African region, with meaningful security projects being delivered to enterprise customers in Nigeria and Kenya," says CEO Clifford Katz in the commentary.
However, ISA notes it continues to experience negative pressure on profitability levels, which it says is an "endemic reality in our industry, especially against those product categories nearing commoditisation, such as anti-virus and malicious code mitigation technologies".
ISA says it is closely monitoring effects of the gross profit erosion in the industry, and is determined to dilute the effect by broadening its product mix, and launching innovative offerings.
Katz continues to be optimistic about ISA's long-term prospects, as key drivers of the IT security market remain robust.
"With the continued evolution and persistence of threats and attacks against corporate information and IT resources, together with the increased regulatory and legislative compliance requirements, stakeholders continue to elevate the importance of IT security within their organisations."
Katz adds the group will grow organically, but does not discount the possibility of buying companies to complement its strategy. This, he adds, depends on whether the right opportunity comes around.
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