Business Update December 2020
Sydney, Dec 9, 2020 AEST (ABN Newswire) - Etherstack Plc (
ASX:ESK) is pleased to provide the following business update on its current business activities.
In the past six months, the company has had significant success through the delivery of its first major digital radio network to the Royal Canadian Mounted Police, entering into a Global Teaming Agreement with Samsung and signing a AUD $4.1m deal with the Australian Department of Defence, as previously announced.
Selected business achievements in 2020 include:
- Australian Department of Defence: New $4.1m contract announced in December 2020, with a significant majority of the contract to be recognised in FY2021;
- Royal Canadian Mounted Police: First contract order from a Canadian federal public safety agency for our PTT over Satellite product, known as the IVX (In-Vehicle Switch);
- Resources Sector deployment: Earlier deployed WA resource mining client digital radio network is now live, and is expected to lead to further network upgrades and future support revenues;
- Global Samsung Partnership: Ongoing development and integration activities with Samsung, in parallel with Samsung pursuit of initial orders;
- Recurring revenue continues to grow, driven by both long term support contracts and royalty payments derived from technology licensing; and
- Continued strong opportunity pipeline.
Key financial achievements:
FY2021 Update: Based on the current order book and recurring revenue base, management expects FY2021 to significantly outperform FY2020.
Positive Cashflow: three consecutive years of solid positive operating cashflow.
Positive EBITDA: three consecutive years of positive EBITDA.
Reduced Debt: continued reduction in long term debt through repayments and convertible note conversions.
Stronger Balance Sheet: as a result of operating activities, convertible note conversion to equity and reduced interest costs as a consequence of debt reduction.
To view the corporate presentation, please visit:
https://abnnewswire.net/lnk/CM2036J1
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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