Stronger than expected sales will see ASX-listed encryption hardware vendor, Senetas (ASX:SEN) post a record net profit of between $6.8 million to $7.1 million for FY16.
During its half year results, Senetas expected net profit after tax to be about $5 million, but stronger June sales as well as better integration with Senetas' former global distributor,SafeNet with Gemalto, and a growing market awareness of encryption hardware for data in-transit, are some of the contributing factors that led to the significant rise in profits.
The company's FY16 results will also include $1.6 million increase in R&D expenditure.
Senetas is also launching new products and growth initiatives, with the release of a new 100Gbps high assurance encryptor due to begin customer testing in August.
A certification process is also underway and the product will be released to the market at the end of this calendar year.
The company will release its full year report on August 26.
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