The majority of small cap tech stocks are not profitable but a few are – such as Over the Wire (ASX: OTW).

The company reported a net profit after tax of $10.1 million – an 83 per cent improvement on the year before; from nearly $80 million in revenue.

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But the stock has actually lost 8 per cent this morning, seemingly attributable to profit taking with the stock more than double what it was two years ago.

Managing director Michael Omeros told shareholders he was delighted with the result and excited about the future.

“We remain focused on delivering organic growth through geographic expansion and market penetration, complemented by quality acquisitions,” he said.

“Industry tailwinds in SD-WAN, Hosted Voice and Cyber Security provide a positive outlook for future growth and Over the Wire is well positioned to take advantage.”

Of these, the best money-maker was its data networks division which generated nearly half its revenue – $37 million. But it says its integrated offerings are one of its key advantages.

The company will pay a dividend of 2 cents per share.
 

In other ASX small cap tech news today…

K2Fly (ASX: K2F) is up 6 per cent today after announcing it had won Glencore as a client. Two months after K2Fly acquired the RCubed resource governance software, the multinational mining giant has signed an annual contract. RCubed now supports over 2000 mining operations. It captures and reports governance data including JORC and SAMREC across multiple stock exchanges including the ASX as well as the New York and London exchanges.
 
HR software stock Elmo Software (ASX: ELO) has also announced its annual results today. Its annualised recurring revenue is up 48 per cent to $48 million and its pro forma revenue is $42.6 million. It has 1,341 customers and 92.1 per cent retention. However it lost $13.2 million due to recent hires and acquisitions. While the stock initially fell at the market open it now sits 3 per cent higher than yesterday.
 
Rent.com.au (ASX: RNT) has announced it now has over 600,000 renter resumes on its app. It works as an online profile so that clients can find rental properties and landlords can do due diligence on them. It also announced it was nearly at 150,000 pet resumes as it announced a new feature of that app. While 50 per cent of properties are pet-free zones, only 20 per cent of the other half proactively state pets are welcome. Implicitly this could make a difference at those properties where pets may or may not be an option.
 
Kleos Space (ASX: KSS) updated the market this morning on its activities. It has now released the pricing model for its first Data as a Service product and it will cost between $120,000 and $971,000 per user. The first satellite cluster will be launched next quarter on Polar Satellite Launch Vehicle (PSLV). The PSLV will give Kleos a 37 degree orbit which will improve data collection and value at critical players. It also stated negotiations are continuing with potential customers.