Audinate Group Limited (ASX: AD8) is involved in providing professional digital audio networking technologies globally. In an update provided on 18 April 2019, the company informed that it has continued its growth trajectory during 3Q FY19. During the quarter, the company reported cash collections of A$6.3 million, up 40% on the previous corresponding period (pcp), driven by the ongoing growth in the core business, supplemented by new products.
Despite this news, the share price of the company plunged by 4.882% during the intraday trade as on 18 April 2019 (AEST 3:01 PM).
During the quarter, the company reported unaudited revenue of A$6.6 million which exceeded cash collections due to strong sales in the month of 2019 March. A key driver of revenue growth is the number of Dante enabled products made available by the company’s OEM customers. During the quarter, Dante enabled products increased by 197 to 1,946 products from 241 OEM customers. Further, the company received around A$1.3 million in R&D incentive for FY18.
The company’s Year to date operating cash flow was A$2.2 million up 42% on 3Q FY18. Further, Year to date total cash outflow was A$1.6 million compared to an outflow of A$1.5 million for 3Q FY18 (excluding IPO payments of A$4.0 million in 3Q FY18) reflecting the investment in Dante AV video products about to come to market.
During the quarter, the company announced its upcoming video solution and it also introduced the Dante AV Module and the Dante Product Design Suite at the Integrated Systems Europe in Amsterdam. Dante AV enables network distribution of HDMI video and audio signals to be transported and routed independently, and synchronised over an IT network.
As per the company’s CEO Lee Ellison, the company’s business is tracking to plan, and the management of the company is pleased with the company’s performance and financial results. The company has historically delivered annual revenue growth in US Dollar terms of between 26 percent and 31 percent. In 1H19, the company reported an increase of 51% in USD revenues versus 1H18, aided by a 59% increase in shipments of Dante units (Chips, cards, modules, adapters & software). The growth in the first half period was driven by the Revenue contributions from shipments of Dante AVIO adapters and Dante Domain Manage. The company is seeing top-line growth being generated in FY19.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $6.040, down by 4.882% during the day’s trade with a market capitalisation of ~$389.51 million as on 18 April 2019 (AEST 3:01 PM). The counter opened the day at $6.450 and reached the day’s high of $6.460 and touched a day’s low of $5.870 with a daily volume of ~383,304. The stock has provided a year till date return of 78.37% & also posted returns of 73.50% & 12.19% over the past three & one-month period respectively. It had a 52-week high price of $6.600 and touched 52 weeks low of $2.910, with an average volume of ~175,124.
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