[Edaily Reporter An Yu-ri ] Piolink, Inc.(170790)increased its third-quarter operating profit by approximately five times year-over-year, driven by the Japanese security market and demand for the replacement of domestic infrastructure. The company also turned its cumulative operating profit—which had been in the red due to costs incurred in the first half of the year and delays in public works projects—back into the black.

Piolink, Inc. announced on the 11th that it recorded consolidated revenue of 18.8 billion won and operating profit of 2.6 billion won in the third quarter of this year. Revenue rose 28% compared to the same period last year, while operating profit increased from 500 million won to 2.6 billion won. Net income expanded by 89% to 1.6 billion won.

Cumulative revenue for the first three quarters totaled 47.4 billion won, a 15% increase from the same period last year. Cumulative operating profit reached 1 billion won, marking a turnaround from an operating loss of 1 billion won in the same period last year. However, cumulative net profit stood at 1.5 billion won, a 2% decrease compared to the same period last year.

All business segments—including Application Delivery Controllers (ADC), web firewalls, security switches, hyper-converged infrastructure (HCI), and security monitoring and consulting—saw growth.

Piolink, Inc. stated that demand for its “T-Front” security switch—which handles device identification and access control—has increased, particularly in Japan, as local companies continue to invest in digital transformation (DX) and adopt zero-trust architectures.

In the HCI sector, cost burdens resulting from changes in licensing policies by global virtualization companies led to demand for replacing them with domestically produced infrastructure. Piolink, Inc. responded to demand from public institutions and enterprises by promoting “Popcorn HCI,” which features perpetual licenses and disaster recovery (DR) capabilities. The resumption of public sector projects in the third quarter—which had been delayed due to local elections in the first half of the year—was also reflected in the results.

The company plans to maintain its growth momentum in the fourth quarter, leveraging its business structure—which sees sales concentrated toward the end of the year—and its portfolio of large-scale projects. It explained that major projects in both the public and private sectors are coming into view as the fourth quarter begins.

Cho Young-chul, CEO of Piolink, Inc., stated, “Amid balanced growth across all business divisions, our overseas operations delivered notable results, enabling us to return to cumulative profitability in the third quarter.” He added, “Given our business structure, in which performance tends to be concentrated toward the end of the year, and with major projects now gaining momentum, we will maintain this trend of growth and improved profitability through the end of the year.”