Senetas Corporation Limited (ASX: SEN) is into the development of advanced encryption technologies, in which it is a global leader. The company has an objective to protect data which are used for commercial purposes & defence applications. The company was incorporated in the year1982 and got listed on ASX in1984.
Today (7 February 2019) Senetas has provided market guidance in relation to its financial results for the half-yearly period ended 31 December 2018 (HY2019). However, these are preliminary results which are subject to the confirmation with auditors of the company and with respect to the application of the new accounting standard for revenue recognition (AASB 15) that has its first application for Senetas in HY2019.
Following receipt of the December 2018 sales results from the Company’s major distribution partner, Gemalto, the company expects its operating revenue to be between $10.1 million and $10.2 million for HY2019. Operating net profit before tax (NPBT) is likely to be between $1.5 million and $1.7 million for HY2019, before the impairment to the carrying value of unlisted investments that was announced by the Company on 19 January 2019.
As disclosed by the company, the preliminary operating results for the period are in line with the Guidance which was provided at the Annual General Meeting of Senetas during November 2018. The company expects a loss between $0.2 million and $0.4 million for HY2019 after providing for the impairment to the carrying value of Smart Antenna Technologies Ltd ($1.9 million).
A detailed update on the Senetas Corporation Limited’s operations and outlook and further information in relation to the HY2019 results will be released with the Appendix 4D and Half Year Report on or around Wednesday, 27 February 2019.
On 16 January 2019, the company announced that it expects to recognise an impairment to the carrying value of its unlisted investments in Smart Antenna Technologies for the half year ended 31 December 2018. Senetas has a stake of 5.52% in Smart Antenna Technologies, which was initially acquired in 2016 December. The major stakeholders and financers of Smart Antenna have advised that the company does not intend to proceed with additional funding as previously agreed by the board, due to disagreements with the management of Senetas Corporation related to future strategy.
Now let us quickly have a glance at Senetas Corporation Limited’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $0.076 and decreased by almost 1.2% during the day’s trade, with a market capitalisation of $83.26 million. The stock opened at $0.077 with its day high at the same price however it touched a day’s low price of $0.075. The stock has generated a negative YTD return of 12.50% and posted negative returns of 24.08%, 20.28% and 9.41% over the last six months, three months and one-month period respectively. It has a 52-week high price of $0.135 and a 52-week low of $0.075, with an average trading volume of 400,064 approximately. The stock is trading at a PE multiple of 42.780x with an EPS of AUD 0.002.
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