Appendix 4C and Trading Update
Sydney, July 9, 2020 AEST (ABN Newswire) - Etherstack (
ASX:ESK) is pleased to present commentary on the Company's activities in H1 FY20, to accompany the lodgement of its Appendix 4C cash report for the quarter ending 30 June 2020. Figures quoted for the first half (H1) FY2020 are preliminary and unaudited.
Highlights
- Revenue Growth: revenue for H1 2020, is US$2.4m, up 40% on the previous corresponding period (H1 2019), with a broad mix of equipment sales, support, technology licensing and royalty revenues
- Strong Positive Operating Cashflow: the Company generated US$1.354m net cash from operating activities for the H1 half, and finished the half with US$1.4m (~AU$2.0m) cash on hand, representing a quarterly improvement of US$1m over the previous quarterly 4C position.
- Strategic Wins: as previously announced in late June, Etherstack entered into a strategic multi-year Global Teaming Agreement with consumer electronics giant, Samsung, to deliver next generation Mission Critical Push To Talk (MCPTT) over LTE solutions to telecommunications carriers and governments across the globe. The Company also won a material deal to supply digital radio network equipment to a resources sector client in Western Australia.
- Expansion Wins: the first half saw repeat business for the Company's deployed large digital radio networks as used in the public safety and electric utilities industries, with material network expansion orders as previously announced.
- Recurring Revenue Growth: a combination of new and expansion orders continued to drive the Company's recurring revenue growth as derived from long term support revenue. This trend is expected to continue in the current half year and into FY2021 as more networks and equipment is deployed.
- Debt Reduction through Convertible Note Conversion: in the past two weeks, the Company retired A$2m of debt through the conversion of convertible notes into new equity.
- Reduced Borrowings: the Company continued to pay down other debt during the first half of FY2020
To view the quarterly cashflow report, please visit:
https://abnnewswire.net/lnk/0VB36TIV
About Etherstack Plc
Etherstack (ASX:ESK) is the world's leading licensor of wireless technologies for the digital LMR industry and the Company develops wireless products for the main digital radio communications standards known as APCO P25, TETRA and DMR. Over the past 25 years, over twenty wireless equipment manufacturers have licensed LMR technologies from Etherstack for use in their products.
MCPTT over LTE is an emerging cellular standard that provides public safety grade PTT (Push-To-Talk) solutions within 4G and 5G cellular networks. Demand for MCPTT services and equipment by telecommunications carriers and end user agencies has been steadily growing in the past few years and is expected to rise rapidly over the next 36-48 months.
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