Cirrus shares up on contract updates

Shares in Cirrus Networks rocketed early this morning but eased off during the day, as the market digested a trading update detailing several completed contracts.

Cirrus also said it had reaffirmed its earnings guidance to be at the lower end of between $3.6 million and $4.1 million, which the company first announced in April as part of a COVID-19 business update.

Today, Cirrus told the market it had completed work under four federal government contracts totalling more than $6.5 million, as well as completed $3.6 million in work with two Western Australian resources companies alongside its technology partners, Cisco and Pure Storage.

Revenue from the contracts has already been recognised, Cirrus said.

The Subiaco-based company emerged 57 per cent higher from a trading halt this morning to 3.7 cents, though its share price has since scaled back to 2.7 cents, as at 2:55pm AEST.

Managing director Matthew Sullivan said Cirrus continued its focus on winning new business across all sectors including mining, resources, government and health.

Cirrus said while the contracts were immaterial to its financial position, they illustrated the company had continued to operate at “an encouraging level within the challenging COVID-19 environment”.