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NetComm Wireless Limited (ASX: NTC)
NetComm Wireless Limited (ASX:NTC), an information technology company having an expertise in wireless Machine-to-Machine (M2M) and wireless broadband (3G/4G) technologies for consumer, business and industrial applications, reported an increase in its stock price by 50% by the market close on 22 February 2019. This has been the major contributor towards stockâs YTD return of 40.79% as on 27 February 2019.
On 22 February 2019, NetComm Wireless Limited declared its 1H FY2019 results for the period ended 31 December 2018. During the period, the Group revenue was up by 6.5% to $94.3 million as the company continued to roll-out contracts to global and domestic customers. The EBITDA declined during the period as a result of a change in the sales mix with a lower NCD sales margin than its Distribution Point Units as well as increased operating expenses in the development of the 5G capabilities for the next phase of growth. As a result, net profit after tax also declined to $2.3 million which was $3.7 million in 1H FY2018. The balance sheet remained strong during the period with no debt and $17.4 million as net cash.
During the period, the company signed an important contract to supply High Port Count Gfast Distribution Point Units (DPUs) with NBN as well as progress multiple major projects with its existing and prospective telco clients.
There was another update from the company on the same date that they have entered into a definitive agreement with the Casa Systems which is a NASDAQ listed company under which the CASA system will acquire 100% equity interest in the NetComm by way of a scheme of arrangement after the approval of the companyâs shareholders as well as the court.
In the remaining part of FY2019, the company will ensure the sustainable platform is in place to take the next step towards change in growth.
In the last one month, the stock has generated a return of 41.72%. At present the shares of NTC are trading at A$1.070 as on 28 February 2019 with a market capitalization of A$156.57m and a PE ratio of 123.67x.
Nearmap Ltd (ASX: NEA)
Nearmap Ltd (ASX:NEA) is a one of leading IT companies based in Australia which offers geospatial map offerings and aerial imagery. The companyâs stock remained in excitement for the month as the company declared its half-yearly results for the period ended 31 December 2018.
The period reported strong growth in the 1H FY2019 key metrics. The annualized contract value went up by 44% to $78.3 million on pcp. The revenue went up by 45% and the gross margin by 2%. Also, the company provided an operational highlight for its future growth where it discussed the product enhancement during 1H FY2019, the development of next generation of HyperCamera2 for faster capture, the extensive machine learning research for Nearmap dataset. These factors had helped the company to perform well in the 1H FY2019 where the balance sheet got strengthened following the capital raise. These factors will enable the company to accelerate the strategic objectives of the company which includes the international expansion, sales and marketing, product and technology development in the upcoming future growth.
If we see the last one-month performance of the company, the stock has generated a return of 33.01%. At present, the shares of NEA are trading at A$2.600 by close of trading session on 28 February 2019. The stock has a market capitalization of A$1.22 billion and approximately 444.56 million outstanding shares.
Altium Limited (ASX: ALU)
Altium Limited (ASX:ALU), another company from the information technology sector, engaged into the development of sales of computer software for the design of electronic products, remained popular in February 2019 after its solid 1H FY2019 results for the period ended 31 December 2018. In the last one month, the stock has generated a return of 34.81%. Also, this stock has consistently given a positive return since its inception.
The company declared its 1H FY2019 results where the companyâs revenue was up by 24% to $78.481 million. The EBITDA increased by 49.4%, EBIT by 55% and the net profit by 57.6%. The company declared a dividend of 14 cents per share which will be paid on 27 March 2019.
The stock seems to be popular as the company is laying a foundation to scale 100,000 subscribers. The company has started scaling its operations in China and the US. The company is also investing in Next Gen marketing as well as its business system which will support better management decision-making while maintaining strong operating leverage.
The company is aggressively executing on a Product Strategy for Dominance and Industry Transformation. By 2025, the company expects to generate more than $500 million revenue where 60-80% of the income will be through electronic design, 10-20% through the electronic parts and the supply chain and another 10-20% through electronic manufacturing and embedded software.
At present, the stock of ALU is trading at A$33.00 as on 28 February 2019 with a market capitalization of A$4.34 billion with approximately 130.51 billion outstanding shares.
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