DUG Technology (ASX: DUG) – high-performance computing
COMPANY SCOREBOARD
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ABOUT COMPANY
DUG Technology (DUG) (https://dug.com/) is a technology company providing high-performance computing as a service (HPCaaS), scientific data analysis services, and software solutions for the global technology and resource sectors. DUG owns and operates some of the greenest high-performance computing (HPC) installations in the world.
The company was listed in August 2020 via raising $35m@$1.35. The existing shareholders sold 6.5m at the IPO.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| DUG | 2.8 | 118123386 | 3070742 | 339343558.4 | 5.2/20 |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 2248 | 75.64% | 71.25% | 22.14% | last raise $20m@90c |
CFO resigned in March 2022.
CBA forced it to make a principal debt repayment of US7m by 30 June 2022.
BUSINESS
Below is the company’s five years performance
| DUG | 2023 | 2022 | 2021 | 2020 | 2019 |
| Operation Revenue ($US) | 50948 | 33752 | 38450 | 45074 | 48989 |
| Cost of Sale | |||||
| Gross Revenue | 50948 | 33752 | 38450 | 45074 | 48989 |
| Gross Margin | 1 | 1 | 1 | 1 | 1 |
| Overheads | -38507 | -34790 | -43105 | -40237 | -42375 |
| Fixed Overheads | |||||
| Variable Overheads | |||||
| Total Operation Expense | -38507 | -34790 | -43105 | -40237 | -42375 |
| Operation Profit | 12441 | -1038 | -4655 | 4837 | 6614 |
| Other Revenue | 2520 | 3851 | 2925 | 4334 | 3219 |
| Interest Expense | -1189 | -1631 | -3751 | -6829 | -886 |
| D&A | -6316 | -7693 | -7416 | -9219 | -7293 |
| Income Tax | -2515 | -2821 | -2963 | -1398 | -4287 |
| Net Profit | 4941 | -9332 | -15860 | -8275 | -2633 |
| NOTES | ($4.8m) once off IPO CN cost |
In November 2021, the company announced a restructure and cost cutting initiative (reducing headcount by 23%) with an estimated saving of US$4.1m.
However, the majority of the revenue increase in FY23 came from service division while the wage costs kept flat.
SUMMARY
The company’s revenue growth might be unpredictable.