Appendix 4E Etherstack delivers strong second half
Sydney, Feb 23, 2024 AEST (ABN Newswire) - Etherstack plc (
ASX:ESK) is pleased to present the Appendix 4E (Preliminary final report) for the year ended 31 December 2023.
David Deacon, Etherstack CEO noted, "Etherstack finished 2023 strongly from a revenue perspective and has made progress on many fronts. The revenue slippage, impacting the first half when revenue was US $2.916 million, was largely recovered in the second half when we generated US $6.503 million, meaning the full year revenue of US $9.419 million is just 2.7% below FY 2022 revenue of US $9.681 million. Importantly, the step change in revenue in FY 2021 in which revenue increased from US $4.699 million to US $8.504 million has been sustained in FY 2022 (US $9.681 m) and FY 2023 (US $9.419 m). FY 2024 is already off to a very strong start.
We delivered on key projects. Most notably, Etherstack delivered a major software release to Samsung for deployment of Etherstack's MCX-IWF technology to AT&T in the United States.
There are further stages of this project currently underway as Etherstack, Samsung and AT&T prepare to on-board the first public safety agency in 2024.
Etherstack continues to work with Samsung in pursuing further opportunities for the MCXIWF product and delivered a second MCX-IWF license to Samsung in FY2023. Additionally, Etherstack is building an opportunity pipeline containing top-tier global communications companies through working with partners such as Samsung but also through direct opportunities such as the Telstra trial in Australia.
It is important to note Etherstack's traditional digital LMR business centred on P25 network products has continued to perform strongly and is an important revenue and profit driver for the business.
Etherstack continued to invest significant funds into our portfolio of intellectual property assets. In FY2023, we invested a further US$ 2.743 million into developing and enhancing the intellectual property assets which produce future revenues. This is the largest investment Etherstack plc has made in a single financial year and is driven primarily by the MCX-IWF programme. To date, Etherstack has invested over US $ 30 million in intellectual property assets.
To strengthen working capital, in support of ongoing operations as well as directed product development collaboration between the companies, Etherstack entered a 4-year loan agreement with its long-term strategic partner in Japan, borrowing US$2.5 million at a competitive interest rate of 6.5% per annum.
While the decrease in revenue and other factors such as currency movements have contributed to reduced profitability in the current year, the work done in FY 2023 is contributing to a healthy long-term future. Etherstack has built an opportunity pipeline, sustained investment in our intellectual property portfolio and developed highly skilled engineering and sales teams. With these fundamentals in place, management believe the Company is well placed for further growth in FY 2024 and beyond."
To view the full year results presentation, please visit:
https://www.abnnewswire.net/lnk/86928Q2J
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.
| ||
|
