DMX Technologies Group, the integrated network infrastructure and digital media solutions provider, saw its net profit jump 38.2% to US$3.7 million ($4.8 million) in the 3 months ended 30 September 2010 (3Q10) from US$2.7 million in 3Q09 with strong sales growth across all its business segments.

Sales surged 59.8% y-o-y to a record US$74.0 million.

Leading the group’s growth was its Digital Media business group, which registered a 68.4% y-o-y jump in revenue to US$26.9 million in 3Q10. With its own proprietary set of digital media solutions, ranging from back end operator software to end consumer interactive cable TV platforms, the Group has benefitted from the ongoing push by cable TV operators to migrate from analog to digital broadcast by 2015.

The economic recovery across Asia has also had a knockdown effect on the group’s Infrastructure Enabling business group. Increased IT expenditure by telecom operators and enterprises has boosted its Infrastructure Enabling business group’s 3Q10 revenue by 55.2% y-o-y to US$47.1 million. Having placed additional focus on developing more recurring sources of revenue, the group’s managed services segment saw its revenue jump 61.4% to US$5.8 million in 3Q10.

Together with the increase in sales, the group’s gross profit grew 27.8% YOY to US$15.2 million in 3Q10. Gross profit margins dipped to 20.5% in 3Q10 from 25.7% in 3Q09. This was due to an aggressive strategy adopted by DMX during the quarter, which saw it offering more hardware-based digital media and infrastructure solutions that have inherently lower gross margins, to gain market share and penetrate new customers.