Network encryption hardware supplier, Senetas Corporation Ltd (ASX:SEN), has joined the throng of technology companies reporting record revenues and profits.

Senetas posted a record full year profit before tax of $7.4 million for the year to 30 June 2005, an 84% increase on 2004.

Net profit after tax of $10 million was also a record for the company and exceeded net profit before tax due to the accounting treatment used by the company to take up the benefit from the remainder of its carried forward tax losses in the 2005 financial year. The company will commence paying tax and accordingly partly franked dividends in the 2006 financial year.

Total revenue for the year was $22.6 million, up 37.6% on 2004,a further record for the company.

Worldwide Senetas encryptor sales (including direct sales and sales for which royalties and license fees were received) were $28.3 million for the period. Security product revenue represented 57% of total operating revenues for the period.

SEN shares were sold down after the announcement finishing on 32c down 3.5c in an exceptionally heavy day of trading in which more than 8 million shares changed hands.