DUG Technology Ltd (ASX:DUG), designer, builder and operator of some of the largest and greenest specialist high-performance computing (HPC) installations in the world, announced its financial results for the six months ended 31 December 2020 (H1 FY21) that saw the Company continue its successful transition to high performance compute-as-a-service (HPCaaS) across multiple sectors.
The Company achieved revenue of $24.2m and underlining EBITDA of $4.2 million, proving resilient through the market turmoil. High performance compute-as-a-service revenue grew 86% half-on-half, continuing the Company’s pivot to HPCaaS and Software.
Commenting on the H1 FY21 results, DUG Founder and Managing Director Matt Lamont CEO said, “It is pleasing to see DUG’s Software and HPCaaS offerings gaining momentum. Our Software, HPCaaS and scientific data analysis for the global technology, science and resource sectors, provides our clients with direct access to world-class HPC facilities, algorithms and visualisation software.
“During the half we won clients outside the oil & gas industry, validating our industry expansion strategy. This included signing The Harry Perkins Institute of Medical Research, a landmark partnership. Our deep-seated software, algorithm and HPC knowledge, expertise and support means clients do not need to build and maintain HPC knowledge, skills, computer rooms, software stacks and machines themselves. They see the value in outsourcing and partnering with us to meet their evolving needs.
“HPCaaS is an enormous high growth global market driven by industries needing to solve ever more complex big data problems. DUG is well positioned to service the oil & gas industry while also providing our products into a broader set of exciting new domains including radio astronomy, genealogy, biomedical research, meteorology and universities.”
DUG is continuing to build recurring revenue from new industry applications, as well as in the Company’s traditional oil & gas base. With a key focus on identifying new opportunities, DUG added new customers in the medical research, public health and oil & gas industries during the half.
Commenting on the growth and diversification of DUG’s client base, Dr Lamont said: “The agreement with The Harry Perkins Institute of Medical Research was a landmark signing for DUG Technology, providing entry into the medical sector. The Perkins is one of Australia’s leading medical research institutes, with more than 250 researchers located on three hospital campuses in Perth. It now has access to HPC cycles and software using DUG McCloud – a client-focused collaborative cloud platform that enables clients to combine DUG’s three main offerings [HPC, services and software] with their own codes and expertise, to suit their needs and desired outcomes. The Perkins will use DUG’s high-performance compute and storage capability to conduct analysis using genomics and other bioinformatics heavy technologies.”
DUG remains cautiously optimistic in the medium to long term prospects, receiving keen interest in HPCaaS, Software and McCloud across several sectors. Similarly, green shoots have begun to re-emerge in the oil & gas sector, with the recovery in the oil price driving an uplift in proposal activity.
DUG has now over 250 data scientists, research physicists, mathematicians, and software engineers with core competencies in HPC, scientific R&D and scientific data analysis, and over 29 petaflops of computing power in operation or due for completion in our award-winning custom-designed and built supercomputers. Strong and substantial compute and storage capabilities will allow the Company to meet the needs of the world’s most advanced computing operations.