Weekly roundup: Tech stocks that emerged as winners - 4DS, OLL, ESH


  • The Australian technology sector has a hi-flyer during the pandemic hitting a record high. However, the sector was down this week primarily due to weak Wall Street performance.
  • Despite the sector ending in red, a few stocks closed on a high note.
  • In September 2020 quarter, semiconductor manufacturer, 4DS Memory was granted three additional USA patents, further strengthening its patent portfolio.
  • OpenLearning Limited reported strong growth across key metrics during the September 2020 quarter while investing in new medium-term revenue streams.
  • Esports renewed its Board during the quarter and also raised A$8 million via placement. The online gaming player also signed a partnership with Super League Gaming Inc.

The Australian technology sector is amongst the few that were strong performers during the tumultuous COVID-19 period. However, the S&P/ASX 200 Information Technology index fell this week, like most other sectors on the ASX.

During the week, ASX was majorly influenced by the weak Wall Street performance due to rising  COVID-19 cases in the US and European countries like Germany and France.

However, there were a few companies from the technology sector whose performance was relatively impressive during the week.

Let us look at three such stocks and see their latest updates and share price performance.

4DS Memory Limited (ASX:4DS)

4DS Memory Limited is a semiconductor development company of non-volatile memory technology, initiating Interface Switching ReRAM for next-generation gigabyte storage in mobile as well as the cloud.

In the last five days, the share price of 4DS Memory Limited has risen from A$0.080 on 26 October 2020 to A$0.100 by the end of day’s trade on 30 October 2020. The shares on 30 October 2020, slipped by 4.762% from its previous close.

 Q1 FY2021 Highlights:

On 28 October 2020, 4DS Memory Limited released its Q1 FY2021 results for the period ended 30 September 2020.

  • During Q1 FY2021, the Company completed its A$3.1 million Share Purchase Plan along with A$4.5 million Placement in June 2020. With this, the Company would be able to meet its FY2021 objectives.
  • On 4 August 2020, 4DS revealed that it was granted three additional USA patents. Thus, the Company’s portfolio of granted USA patents reached 26. 4DS entirely own all the patents.
  • Further, 4DS has filed six USA patent applications to safeguard its innovations and also bolster its intellectual property portfolio in the field of Interface Switching ReRAM for Storage Class Memory near to DRAM.

Board Update:

Post the Annual General Meeting of the Company, Drs. Wilbert van den Hoek would join 4DS board as Chairman.

Q1 FY2021 Cash Flow Highlights:

  • Net cash used in operating activities: A$2.110 million.
  • Net cash from financing activities: A$7.226 million.
  • Cash and cash equivalents at the end of the period: A$7.585 million.

FY2021 Outlook:

In FY2021, the Company strategic development goal includes the fabrication of megabit chip on state of the art (300mm) industry fab equipment, plus a corporate transaction.

OpenLearning Limited (ASX:OLL)

OpenLearning Limited is a SaaS company that offers a scalable online learning platform to education providers along with world-class courses for learners of each level. From 26 October 2020 to 30 October 2020, OLL shares improved by 14.06%. By the end of the day’s trade on 30 October 2020, OLL share price increased by 2.816% and settled at A$0.365.

On 28 October 2020, OpenLearning Limited released its Q3 FY2020 results for the period ended 30 September 2020.

Q3 FY2020 Highlights:

  • During the quarter, the Company reported strong growth across key metrics while investing in new medium-term revenue streams.
  • Despite slight dip QoQ because of the Company’s focus on getting revenue share arrangements for OpenCreds and longer-form programs, the YoY growth was robust.
  • Under the OpenCreds Investment Fund, the Company selected eight education providers to build 26 courses.
  • Annual recurring revenue increased by 55% to A$1.225 million YoY.
  • A 160% growth (YoY) was seen in Platform SaaS customers.
  • Cash Receipt from customers improved 45% to A$781k YoY.
  • There are 2.626 million registered users of OpenLearning, with a quarterly increase of 118k.
  • Total 4.238 million people are enrolled with OLL. There was a quarterly increase of 563k, up +15% QoQ.
  • By the end of the September 2020 quarter, the Company had A$4.7 million.
  • After the end of September 2020 quarter, OLL entered in an agreement to provide the UNSW Transition Program (online).

INTERESTING READ: E-learning focusses on skill development, continues to boom post the lockdown

Esports Mogul Limited (ASX:ESH)

Esports Mogul Limited owns pure-play online esports tournament and match-making platform in the world. From 26 October 2020 till 30 October 2020, ESH shares improved from A$0.02 to 0.022, representing a growth of 10%.

On 29 October 2020, Esports Mogul announced its Q3 FY2020 update for the period ended 30 September 2020.

Key Development During Q3 FY2020:

Board Renewal:

  • On 03 August 2020, Esports Mogul announced that the former Google, YouTube and Spotify Managing Director, Kate Vale joined the Company as a non-executive director.
  • A couple of days later, on 6 August 2020, former Electronic Arts, Midway and Disney Executive joins Mogul joined Mogul as CEO.
  • After these appointments, Mogul announced that Gernot Abl would move to Non-Executive Chairman.

Director Resignation:

In line with the update related to the Board changed released on 10 September 2020, Esports Mogul on 30 October 2020, confirmed the resignation of Mr Adam Jacoby as a non-executive director of the Company.

Some Important Developments Post Q3 FY2020 ended:

  • Mogul raised A$8 million in a considerably oversubscribed placement. Tranche 1 settled on 26 October 2020, where A$5 million was paid. Tranche 2 is of A$3 million, and it depends on shareholder approval at the general meeting likely to take place in late November 2020. The funds raised via placement would put the Company in a strong position while discussing significant partnerships with big brands and publishers. In the short run, the funds would be used for investment in e-commerce and digital sales expertise, scaling product and engineering resources plus data analytics.
  • Soon after the completion of Q3 FY2020, the Company entered into a strategic partnership with Super League Gaming Inc (Nasdaq: SLGG). Now, Mogul and Super League Gaming together started joint business development activities in several regions worldwide, to partner on revenue-generating opportunities by giving end-to-end solutions for brands via esports tournament activations & streaming.





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