NAMUTECH sales continue double digit growth

NAMUTECH, a cloud solution provider, achieved the highest performance ever thanks to the resumption of investments in digital transformation (DX) of customers and the booming business in telecommuting solutions.

On the 9th of February, the company tentatively announced that it achieved 101.1 billion won in sales on a consolidated basis in 2020. This is an increase of 18.2% compared to 2019. NAMUTECH has opened the era of 100 billion won in sales for the first time since its inception, thanks to the increase in cloud and telecommuting solutions for companies.

Sales in the fourth quarter of 2020 were the most significant quarterly results ever, with a consolidated basis of 38.9 billion won and an individual basis of 29.6 billion won. Annually, they recorded 101.1 billion won and 64.1 billion won, respectively, up 18.2% and 9.7% over the previous year.

NAMUTECH analyzed that IT investments delayed due to COVID-19 resumed, and VDI and telecommuting solutions spread to all sectors, including large corporations, financial institutions, and public institutions.

An official from NAMUTECH said, “Despite the COVID-19 shock in 2020, the telecommuting solution business among the cash cow VDI business grew and achieved the 20.1K (100 billion won in sales by 2020) goal established three years ago.”

Operating profit, which had been in a deficit of 1.56 billion won on an individual basis until the third quarter, turned to a surplus, recording 2.2 billion won on an individual basis in the fourth quarter, and 700 million won annually. However, on a consolidated basis, the annual operating loss is 3.2 billion won due to increased costs due to continuous recruitment of R&D personnel, including affiliates and investment in new products such as big data and AI platforms. In the fourth quarter, it only recorded a surplus of 590 million won.

The company is also spurring new businesses. NAMUTECH, which has been mainly in charge of VDI-based virtualization, cloud, and 5G NFV markets, is expanding the Smart DX Solution, expanding its market entry in the fields of the cloud, artificial intelligence, big data, and smart city.

NAMUTECH’s CEO Chul Jung said, “We achieved 100 billion won in sales through continuous development and our employees’ continuous efforts for customers’ digital transformation.” He added, “In 2021, we will target the cloud, artificial intelligence, big data, and smart city related markets through the Smart DX Solution that we launched in CES 2021. We will actively participate in the government’s digital new deal, and smart city projects to expand our business to meet the goal of 300 billion won enterprise value by the year 2023.”