Technology-driven Mako swims in Oz waters

Technology-driven Mako swims in Oz waters, helps lift profit as investor in listed company

Investment in listed Australian company NetComm Ltd (ASX: NTC) is paying off for NZ technology company Mako Networks.

Late last year Mako took a 13% stake in the Australian business, which has just reported a net profit of $AUD279,000 for the half year ended 31 December 2007, a $AUD1,629,000 improvement on the same period in 2006.

NetComm says its increase in gross margin resulted from a change in product mix -investing heavily in higher value, higher margin technologies and services targeted at the small to medium business sector, such as the Mako product.

Mako gained its share of the company through a supply deal worth around $3m, which sees NetComm gaining exclusive Australian rights to Mako Networks' products.

Bill Farmer, Mako CEO, says customers are already in place, only six weeks into the deal.

"Our service allows businesses to simply and safely enjoy the benefits of high speed internet access while maintaining full control over its use. We provide a plug and play total network management and security system that is ideal for small to medium sized businesses without dedicated network staff," says Bill Farmer.

Mako Networks is a New Zealand-based, award-winning developer of a managed VPN broadband service that offers customers enterprise level control of its connection to the internet.

Its solution has been a success in the New Zealand market in the small to medium business sector, sold through Telecom's SecureMe, as well as with larger enterprises who have multiple sites. The company also has sales in the UK and South Africa.

Mr Farmer says Mako is on track to lift its stake in the company by year end, subject to shareholder approval.

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