- Audinate Group reported an in-line revenue number (unaudited) in 1H FY2021. The figures, however, were significantly higher compared to the previous half-year revenue.
- The unaudited revenue was hit by the strengthening of the AUD/USD exchange rate.
- AD8 took a step forward in the direction of its medium-term strategic priorities. The Company onboarded four video development team members, and seven would join in the upcoming two months.
- Audinate hired a Vice President of Strategic Partnerships in Cambridge to focus on corporate development and merger & acquisition prospects.
Audinate Group Limited (ASX:AD8) has provided an update on its unaudited H1 FY2021 results (period ended 31 December 2020) with an impressive 19.35% growth in revenue compared to the previous six months (H2 FY2020).
Despite the impact of a strengthening Australian dollar, which had a negative effect of ~A$15.4 million in revenue, the Company’s unaudited revenue was in line with the H1 FY2020.
New South Wales-headquartered Audinate Group is a developer of AV-industry leading Dante® media networking solutions.
What management say about the 1H FY2021 result?
Development During 1H FY2021
Due to an unrelated corporate acquisition in Cambridge, the Company could attract and set an experienced video development team comprising 11 staff members. The onboarding of four team members got accomplished, and the remaining would start over the upcoming two months. The Company anticipates the team to further strengthen by the closure of FY2021.
The initiative taken by the Company is as per its medium-term strategic priorities which were pointed in the investor presentation and include 165 years of video experience and expertise to Audinate.
These initiatives taken by the Company would result in further cash expenses during FY2021 which would be in between A$1.3 million to A$1.5 million. A part of the cash expenses would get capitalised as per the current policy on capitalisation of development costs.
A Glance at medium-term strategic priorities
- From 2019, the Company mid-term strategic priorities aim to double its engineering and R&D roles over two years.
- Put in place its business infrastructure platform to support its long-term growth.
- Focus on developing next-generation Dante audio & video software implementations.
- Make Dante video popular technology amongst OEMs.
- Expand AD8’s total addressable market with the inclusion of video & software products.
Stock Information: At AEDT 2:31 PM, AD8 shares were trading at A$7.790, in line with the previous close. The Company has a market capitalisation of A$594.01 million.