Elsight Limited (ASX: ELS) today provided an update on operational progress, commercial opportunities and strategic priorities of the business. The update has favoured the company on Australian Securities Exchange to such an extent that the stock soared up by 16.667% to last trade at $0.630 on 10 April 2019.
The company has delivered a 100% increase in 1Q 2019 revenue on the previous corresponding period and has launched a new flagship product ‘Halo’. However, the revenue figures have yet not been revealed are due to be published by the end of this month, i.e., April 2019.
Halo is a communication platform that integrates Elsight’s technology of high bandwidth completely secure data transmission. The Board and management consider Halo as a standalone “company maker”. It reportedly has the potential to transform the scale and pace of commercialisation and enables Elsight to capitalise on the enormous end market opportunities across many of the world’s fastest growing verticals.
It is offered as a standalone device or internal board, is adaptable to any platform or device and is much smaller than any other bonded solution. It is therefore positioned to be ideal for OEMs (original electronics manufacturers) of autonomous vehicles and ADAS, handheld devices, cameras, drones or any device that moves and requires lightweight, high-bandwidth, low-power consumption, always-on connectivity and highly secure communications.
The company further reported that it has signed the number of repeat orders from existing customers including Traffilog who signed up for the Rider-T series for its highly demanding heavy-duty fleet management customer and Alrena for another order for its emergency telemedicine kits - Smart Medicase.
Elsight has realised the commercial potential of its advanced communication technologies for real-time data, video, and audio transmission over cellular networks in mission-critical environments is significantly greater than expected given its essential application in some of the world’s fastest-growing industries including drones, tablets, autonomous and driver assisted systems (ADAS) and security cameras. These unique end-market opportunities combined with the world’s leading secure data transmission technology are believed to provides the foundation for significant value creation potential over the short, medium and long term.
Halo was officially launched in February 2019 at the MWC19 Barcelona, one of the most significant techs and mobile exhibitions in Europe. It was widely attended with representation from many of the world’s leading corporates within verticals that are prime commercial targets for Halo. As a result of meetings held at the event, follow up discussions have commenced and are continuing with international tier-one leaders in the fields of network technology, telco providers, automotive and aviation. Interest in Halo from potential customers at the exhibition was overwhelmingly positive with around 200 sales leads generated including a number of especially promising opportunities with leading multi-national organisations.
The company has a high activity pipeline set for the rest of 2019 with the commercialisation of Halo, the launch of a cloud-based interface and a number of key business development events across the globe.
Over the past 12 months, ELS has declined by 8.47% including a negative price change of 18.80% in the past three months.