Irish cyber security firm Netwatch to open another office in US
Irish cyber security firm Netwatch is set to open another office in the US in the new year after its profits increased by almost 50pc in 2014.
Netwatch, which is based in Carlow, offers web-based CCTV monitoring services. Using two way communication software employees at the firm can monitor premises and alert intruders that they are being monitored, discouraging break-ins and theft.
According to accounts just filed by Netwatch to the Companies Office gross profits rose to €5.6m in the year to the end of December 2014 compared to €4.5m the year before, while administrative expenses increased from €3.4m to €3.9m. Overall the company made a full year profit of €1.4m, up from just under €1m the year before.
Turnover rose from €8.5m to €9.6m. Netwatch installs its surveillance equipment on a customer's premises free of charge and the customer then pays on a contract basis.
Netwatch CEO David Walsh is on track to have about €13m in contracted revenue for the next five years secured by the end of 2015. Speaking to Independent.ie he said: “We would also look to add an additional €6m-€7m in recurring revenue next year, [so] we would have €20m in contracted revenue. Because of our revenue model we would only receive about half of new revenue in a year, [so] we will do about €16.5m in revenue in 2016.”
He added that the company is also planning to open a new office in Chicago. Netwatch has about 170 employees, with its main operations in Ireland, the UK and the US.
“We are looking to open up a new office in Chicago in the first quarter of 2016, it will be a sales office so there will be a small number of staff, [in the] single digits, and there isn’t a huge upfront capital expenditure,” he said.
Asked if the company is considering opening in any new locations he said: “We would look to bed down Chicago first, Florida is an option as well as we already have a few customers there.”
Netwatch has recently held talks with the Irish Stock Exchange about a possible flotation and aims to hit revenue of €100m by 2020.