Key Updates on Technology Stocks– LNU, FZO, BTH

The S&P/ASX 200 Information Technology (Sector) Index was trading lower at 1,405.5, moving down 42.4 basis points by 3.02%%, while the S&P/ASX 200 Index was also trading at 6,613.7 (down 0.52%) on 10 September 2019 (AEST 12:39 PM). Let’s take a detailed look at the following Information Technology players from Australia’s tech industry.

Linius Technologies Limited
Business Snapshot

Australia-based Linius Technologies Limited (ASX: LNU) is an information technology player that has developed a proprietary Video Virtualization Engine™ (VVE), which is available on Microsoft Azure, IBM Cloud and Amazon Web Services. Video accounts for ~ 80% of internet traffic and tech giants like Microsoft, Amazon and IBM are investing billions in virtualising ‘video services’ and AI in the cloud, making it the biggest battle on the internet.

Initially, the company is aiming to commercialise its VVE-powered Video Hyper-Personalization and Search Solution across six key markets including News and Media, Sports Broadcasters and Rights Holders, Education, Security and Defence, Corporate Communications, as well as Sports Betting. Besides, the VVE-powered solution enables users to look up data within any video, through multiple sources, and automatically collates the results in a single stream instantaneously without the need for human intervention.

Linius technology

VVE (Source: Investor Presentation)

Linius’ Partnership with Racing.com

Recently on 9 September 2019, the company announced to have reached a commercial agreement with Racing.com. Under the agreement, Linius would provide the users of Racing.com with various personalised video content experiences. Moreover, the company would work with important elements of the media and publishing functions. The first version of the product is expected to be launched shortly for the customers. The initial term of the agreement is 12 months with provisions for extension.

Racing.com is a leading Australian thoroughbred horse racing media organisation, and a joint venture between Racing Victoria, Victorian race clubs and the Seven Network.

Linius CEO, Chris Richardson commented on the recent development and explained that horse-betting in Australia alone generates ~ $ 18 billion in annual revenues, and globally, the business is generating over $ 116 billion every year. The company aims to leverage this opportunity and scale its business by replicating its solutions across other betting agencies, betting sites and all other sports worldwide.

FY19 Results

On 30 August 2019, the company disclosed its annual results for the financial year ended 30 June 2019 (FY19), reporting revenue from ordinary activities at $ 164,254, which is an increase of 80.2% over FY18 and the loss for the year after income tax amounted to $ 11,557,874.

Stock Information

Linius Technologies’ market capitalisation stands at around $ 37.5 million with ~ 1.04 billion shares outstanding. On 10 September 2019 (AEST 12:41 PM), the LNU stock price was trading at $ 0.035, down 2.778% by $ 0.001 from its previous close.

Family Zone Cyber Safety Limited
Business Snapshot

Family Zone Cyber Safety Limited (ASX: FZO) is an IT sector company, playing an important role in ensuring cyber safety and managing digital lifestyles at the backdrop of an increasing demand for keeping kids safe against online threats. The company has developed a peculiar cloud-based platform solution that enables schools, parents and cyber experts to collaborate for effectively monitoring, protecting and educating their children.

Family Zone Partners with JB Hi-Fi

On 9 September 2019, Family Zone Cyber Safety updated the stakeholders about a new exciting and strategic partnership established with Australia’s leading education technology provider, JB Hi-Fi Solutions.

In Australia, there are more than 10,000 schools and all of them are actively seeking to deploy appropriate technology solutions to build and support their modern learning environments. Besides, the technology needs of the education industry are ever expanding from learning devices, peripherals and networking equipment, to learning and business applications, security and safety services.

JB Hi-Fi has been in the education business for more than 18 years, backed by a solutions team of more than 150 across the country, and over 300 retail stores. It is also one of the leading suppliers of computing equipment for BYOD programmes at schools across Australia.

Through this new partnership, Family Zone and JB Hi-Fi Solutions would together provide the schools in Australia with a comprehensive suite of products and services along with streamlined purchasing, deployment and administration. The key elements of the partnership have been elaborated below-

Family Zone Cyber Safety Limited company announcement

Source: Company announcement dated 9 September 2019

FY19 Results

For the financial year ended 30 June 2019 (FY19), the company reported an 80% increase in revenue from ordinary activities at $ 4.18 million and through the year, Family Zone continued to develop and refine the commercialisation strategy for its suite of cyber safety products.

Besides, Family Zone’s consistent investment in R&D initiatives during FY19 resulted in the company receiving government grant income of ~$ 3.83 million, taking the total revenue and other income for FY19 to ~ $ 8.03 million.

Stock Information

With a market capitalisation of around $ 40 million and ~ 205.13 million shares outstanding, the FZO stock was trading at $ 0.190, down 2.564% by $ 0.005 on 10 September 2019 (AEST 12:43 PM). In addition, the FZO stock has delivered positive returns of 56% in the last three months.

Bigtincan Holdings Limited
Business Snapshot

Bigtincan Holdings Limited (ASX: BTH), based in Boston, US, helps the sales and service teams of companies to increase the odds of winning while enhancing customer satisfaction. The company offers a mobile, AI-based sales platform, which empowers reps to engage more effectively with customers and prospects. Some of the clients of Bigtincan include Merck, AT&T and Thermo Fisher.

Bigtincan Holdings Limited FY19 full year presentationSource: FY19 Full-Year Results Presentation

New Contract Secured

On 9 September 2019, Bigtincan Holdings announced to have secured a new contract for a retail deployment from a US-based company engaged in retailing shoes, apparel and sports equipment, globally. The total value of the contract is around $ 2.8 million, and the term of the contract is three years.

The Bigtincan® Zunos software platform would be used to develop a modern, personalised and mobile learning and content ecosystem, that would be available to be used by a large number of frontline retail staff within the United States and globally.

Recent Acquisitions

On 5 September 2019, Bigtincan announced to have acquired Asdeq Labs Pty Ltd, an Australian software company established in 2011 with offices in Hobart, Tasmania. The move adds the existing products of Asdeq Labs to the Bigtincan technology stack.

The initial acquisition price is ~$ 490,000 (less debt and subject to a working capital adjustment) and Asdeq is expected to add ~$ 400,000 in sustainable annualised recurring revenue (ARR).

This follows the recently signed asset purchase agreement to acquire the assets of Veelo, Inc, based in Oregon, US, for a consideration comprising USD 1.8 million and the assumption of normal associated liabilities. Veelo’s premium sales enablement platform is expected to supplement the sales performance of the clients through appropriately guiding them on what to know, say and do. Moreover, the move is expected to bring in AUD~ 1.1 million in sustainable ARR and the leading technology would complement Bigtincan’s existing product suite.

Stock Information

Bigtincan’s market cap stands at around $ 136.2 million with ~ 261.93 million shares outstanding. On 10 September 2019 (AEST 12:44 PM), the BTH stock was trading at $ 0.525, edging up 0.962% by $ 0.005. Besides, BTH has delivered positive returns of 91.60% YTD, 30.85% in the last six months and 7.22% in the last three months.


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