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Information technology sector is one of the most prominent sectors, which plays a major role in the contribution for the development of an economy. As technology is changing with each passing day, the companies are required to adapt the same. In this article, we will be looking at the three IT companies with their recent updates:
Audinate Group Limited (ASX: AD8)
Audinate Group Limited (ASX: AD8) is a globally known professional audio technology provider, which officially got listed on Australian Stock Exchange in 2017.
Revenue increases by 14%
On 24th February 2020, the company notified the market participants with the results for first half of financial year 2020 for the period closed 31 December 2019 and outlined the following:
- During the half-year, the company reported a rise of 14% in revenue, which stood at A$16.1 million. This has been driven by the impact of US tariffs as well as overall macro-economic condition. Net profit of the company stood at A$3.41 million with a decline of approx. 60%.
- As per the key personnel of the company, AD8 has delivered against its strategic objectives along with continuing growth in revenue and gross profit, which was supported by growth in software sale.
- For the half-year period, the company reported gross profit amounting to A$12.5 million with a rise of 20%.
- Cashflows from operating activities stood at $2.9 million in 1H FY20, which experienced a rise from $0.6 million in 1H FY19. This rise has been fueled by additional revenue from customers.
Plans for Upcoming Years
- On the outlook front, the company is well placed to pioneer the future of AV. Moreover, the results for 1H FY20 have been impacted by macro-economic conditions as well as US tariffs and these are anticipated to persist for 2H FY20, coupled with potential Coronavirus impacts.
- Even with these temporary challenges, the company currently anticipates delivering further revenue growth in 2H FY20, although it is expected to be below the historical range.
- Over the upcoming two years, the company would be investing for doubling the engineering and R&D functions. It would be developing next generation Dante audio and video software implementations.
- The company would be expanding its Total Addressable Market along with the addition of video & software products.
- The company remains optimistic about its position to capitalise on the analogue to digital transition which is gathering pace within the AV industry.
The stock of AD8 was trading at $6.800 per share on 25th February 2020, indicating a rise of 4.777% (at AEDT 1:38 PM). The company has a market capitalisation of $440.01 million as on 25th February 2020. The total outstanding shares of the company stood at 67.8 million, and its 52-week low and high is $4.240 and $9.300, respectively. The company has generated a total return of -22.74% and -5.26% in the time period of three months and six months, respectively.
Reffind Limited (ASX: RFN)
Australia based Reffind Limited (ASX: RFN) is a SaaS entity engaged with revolutionising employee peer acknowledgment, along with the how consumer loyalty and employee incentives are designed, compensated and operated.
On 24th February 2020, RFN shared an announcement made by Loyyal Corporation (Reffind Limited is a significant shareholder in Loyyal), that a three-year commercial production vendor agreement has been signed with The Emirates Group. Both the companies have entered into an agreement for the exclusive utilisation of blockchain-enabled loyalty and rewards platform of Loyyal to function the Emirates Airline’s Skywards frequent flyer programme’s partner loyalty redemptions.
As per RFN’S view, the new three-year contract between the entities denoted a key development in the working association among them, taking into consideration the exclusiveness and longer duration of the deal.
A Look at December 2019 Quarter
In another update, the company recently updated the market with the operational performance for the quarter ended 31 December 2019:
- RFN witnessed a change in its top management, wherein, it has appointed Joshua Quinn for the role of non-executive director. Mr Quinn possesses expertise in corporate and international taxation, which include tax consolidations from formation to exit and compliance, CGT, FBT, restructures, tax audits as well as dispute resolution of more than 17 years.
- With respect to Loyyal investment update, the company stated that Loyyal successfully wrapped up a live pilot with Emirates Skywards, which happens to be a loyalty program from Emirates Airlines.
- Moreover, RFN looks for significant value in its investment Loyyal which has been strengthened by its strong progress, as well as increased support from sophisticated technology investors in Japan, Dubai and USA.
- After the end of quarter, RFN acknowledged the continuing support from mostly prior sophisticated investors for completing a capital raising amounting to $500,000.
The stock of RFN was trading flat at $0.004 per share on 25th February 2020 (at AEDT 2:06 PM). The company has a market capitalisation of $3.36 million as on 25th February 2020. The total outstanding shares of the company stood at 840.5 million, and its 52-week low and high is $0.002 and $0.008, respectively. The company has generated a total return of -20.00% in the last 1- year period.
Dubber Corporation Limited
The world’s most scalable call recording service Dubber Corporation Limited (ASX: DUB) that has been embraced as basic network infrastructure by many internationally leading telecom carriers in the regions like North America, Europe etc.
On 3rd February 2020, the company through a release announced that it has inked an agreement with Telstra allowing customers of Telstra to access Call Recording and Data Capture Platform of Dubber for business telephony and mobile.
For the quarter ended 31st December 2019 (Q1 FY20), the company reported revenue amounting to $2.4 million with a rise of 11.8% as compared to $2.15 million of September quarter. The company experienced a rise in end user subscribers, which stood at 1,22,000 at the end of quarter. Moreover, it showcased a rise in agreements with Service Providers to 123 from 113 during the December 2019 quarter.
The company is confident that its platform is on track during the current quarter to be listed on the Cisco Price List, which is allowing for seamless order entry for the broader global Cisco partner channel.
The stock of DUB was trading at $1.005 per share on 25th February 2020, indicating a rise of 1.515% (at AEDT 2:15 PM). The company has a market capitalisation of $189.33 million as on 25th February 2020. The total outstanding shares of the company stood at 189.33 million, and its 52-week low and high is $0.665 and $1.760, respectively. The company has generated a total return of -25.84% and -17.84% in the time period of three months and six months, respectively.
