Data centre company 5G Networks (ASX:5GN) has rolled into 2020 with some momentum, after positive cash flow results in Q4.

The company said net operating cash flow hit $2m for the three months to December (a new record), on cash receipts of $14.1m.

5GN attributed its positive result to more success in on-boarding customers to its annuity-based services which generate recurring revenues.

The company also pointed to improved operational efficiencies in the wake of an acquisitive year in 2019 when it purchased two additional data centres — a $3m Melbourne purchase in April, followed by a $3.5m deal for a data centre in the Sydney CBD in September.

5GN said it signed up the first customer for its Sydney data centre during the December quarter, and also connected it to “several other data centre providers” in the Sydney area.

Last week, the company announced a partnership with cloud hosting platform Servers Australia (SA), which will see SA use capacity from 5GN’s data centres in Sydney, Melbourne and Adelaide.

The deal has an initial two-year term and will generate minimum revenues of at least $750,000.

5GN also announced today that it’s completed development for a cloud-based service of its own, ahead of an expected launch in the March quarter.

The company said its cloud service will provide “connectivity to several market leading cloud providers for seamless access to hybrid, private and public cloud offerings”.

The positive market updates in the new year have helped give 5GN’s share price a boost, but it still has a way to climb to reach last year’s high of $1.68.


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In other ASX tech news today:

Buy now, pay later company Splitit (ASX:SPT) announced a funding update, advising that it deployed $US4m ($5.8m) of a financing facility provided by Shaked Partners Fund, L.P. Splitit said the funds would be deployed to expand its merchant business model in the US. A further $US4m can be drawn down from the facility by August 2020. Splitit said it had terminated an agreement with a previous credit provider, Simpel LLC.

The company also announced that it registered with financial regulator AUSTRAC to provide factoring services — the sale of receivables to a third party — in the Australian market. Shares in SPT were up 3 per cent at 67.5c.