Australia’s IT sector Index, S&P/ASX 200 Information Technology (Sector) has been on an upward trend this year, soaring from AUD 1057.80 as on 2 January 2019 to AUD 1277 as on 8 March 2019. Below are 3 IT stocks that have gained traction this year.
Altium Limited (ASX: ALU)
From the beginning of the new year 2019, the stock of Altium Limited (ASX: ALU) has given a decent performance with 51.97% YTD return as on 7 March 2019. In the last three months till 7 March 2019, the stock of ALU has generated a return of 50.02%. This stock is consistently giving a positive performance since its inception and is one of the loved stocks amongst the investors.
The shares closed the trading session at A$33.070, up by 0.7% as compared to previous trading day’s closing price.
The company released its half-yearly results on 18 February 2019. During the period (1H FY19), the company reported an increase in the revenue from the ordinary activities by 24% to US$78.481 million. There was an increase in the EBITDA during the period by 49.4% to US$28.360 million as compared to the previous corresponding period. The EBIT went up by 55% and the net profit after tax for the period was 57.6% to US$23.441 million. ALU had declared a final dividend of A$14 cents per share.
Also, the company aims to achieve a revenue target US$200 million by 2020, where all its segment will be generating a double-digit revenue.
The past performance of the stock when gets complemented with the company’s strong financial performance and decent outlook has made the stock popular amongst the investors, giving them the confidence to get a positive return in the long run.
Netcomm Wireless Limited (ASX: NTC)
NTC is another IT stock, which has gained traction this year. Since the beginning of the new year, a steady movement has been seen in the share price of the company with an impressive YTD return of 41.45% with the stock witnessing a sudden hike on 22 February. The shares, which closed at A$0.710 on 21 February 2019, increased up by almost 46% to A$1.065 on 22 February.
The company recently released the half-yearly results for FY19. There was an increase in the Group’s revenue by 6.5% to $94.3 million. The EBITDA during the period was reported at $8.3 million. Simultaneously, the NPAT dropped from $3.7 million to $2.3 million on the previous corresponding period. The decline in the NPAT was driven by increased operating cash outflow during the period. The increase in the revenue was driven by the scaling of the network connection device from NBN as well as the sales of fixed wireless and network connection device (NCD) across the world. Although the EBITDA got influenced by the change in the sales mix along with the NCD sales having a lower margin than the Distribution point units and increased operating expenses as a result of the development of 5G capabilities, however, in the long run, these investments will lay a foundation for the next stage of growth, as stated by the company.
Also, the balance sheet remained strong during the period.
At present, the shares are trading at A$1.075 as on 8 March 2019.
Livetiles Limited (ASX: LVT)
LiveTiles has also displaced impressive performance this year with a strong YTD return of 20.59%. The shares are currently trading at A$0.410 as on 8 March 2019.
On 15 January 2019, the company highlighted that as of 31 December 2018, the annualized recurring revenue has reached $22.9 million which was, up by 232% as compared to its previous corresponding period. In the CY2018, the company continued to build a huge pipeline of sales opportunities, which was driven by the company’s global partnership with Microsoft, and through the N3 sales and marketing channel.
The company recently launched an Airline artificial intelligence solution with Microsoft. Through LiveTiles’ Gate Agent Assistant Bot, the artificial intelligence will be used, to provide automated responses as well as retrieve information, which will enable the staff associated with the airline to quickly respond to customer demand at the gate.
The company had been selected as one of the 4 partners in Australia, to participate in the Microsoft P2P Integrated Solution Program. Through this program, the company expects a tremendous new dimension in its partnership with Microsoft. The partnership between LVT and Microsoft was to develop cloud-based Enterprise solution.
On 5 February 2019, the company announced the acquisition of Wizdom, a leading plug and play, Microsoft-aligned digital workspace software business, which has a strong footprint in Europe. The transaction got completed on 13 February 2019. With the completion of the deal, there is massive scope for its expansion and presence of LVT in the European market.
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