Etherstack Plc (ASX:ESK) Appendix 4C and Trading Update [IMG]...

Etherstack Plc (ASX:ESK) Appendix 4C and Trading Update



ABN Newswire9 July 2020



Sydney, Australia, July 9, 2020 - (ABN Newswire) - Etherstack (ASX:ESK.AX - News) is pleased to present commentary on the Company's activities in H1 FY20, to accompany the lodgement of its Appendix 4C cash report for the quarter ending 30 June 2020. Figures quoted for the first half (H1) FY2020 are preliminary and unaudited.


Highlights

- Revenue Growth: revenue for H1 2020, is US$2.4m, up 40% on the previous corresponding period (H1 2019), with a broad mix of equipment sales, support, technology licensing and royalty revenues

- Strong Positive Operating Cashflow: the Company generated US$1.354m net cash from operating activities for the H1 half, and finished the half with US$1.4m (~AU$2.0m) cash on hand, representing a quarterly improvement of US$1m over the previous quarterly 4C position.

- Strategic Wins: as previously announced in late June, Etherstack entered into a strategic multi-year Global Teaming Agreement with consumer electronics giant, Samsung, to deliver next generation Mission Critical Push To Talk (MCPTT) over LTE solutions to telecommunications carriers and governments across the globe. The Company also won a material deal to supply digital radio network equipment to a resources sector client in Western Australia.

- Expansion Wins: the first half saw repeat business for the Company's deployed large digital radio networks as used in the public safety and electric utilities industries, with material network expansion orders as previously announced.

- Recurring Revenue Growth: a combination of new and expansion orders continued to drive the Company's recurring revenue growth as derived from long term support revenue. This trend is expected to continue in the current half year and into FY2021 as more networks and equipment is deployed.

- Debt Reduction through Convertible Note Conversion: in the past two weeks, the Company retired A$2m of debt through the conversion of convertible notes into new equity.

- Reduced Borrowings: the Company continued to pay down other debt during the first half of FY2020
To view the quarterly cashflow report, please visit:


https://abnnewswire.net/lnk/0VB36TIV

About Etherstack Plc:

Etherstack (ASX:ESK.AX - News) is a wireless technology company specialising in developing, manufacturing and licensing mission critical radio technologies for wireless equipment manufacturers and network operators around the globe. With a particular focus in the public safety, defence, utilities, transportation and resource sectors, Etherstack's technology and solutions can be found in radio communications equipment used in the most demanding situations. The company has Research and Development facilities in London, Sydney, New York and Yokohama.

Contact:
Etherstack
David Carter, Chief Financial Officer
T: +61 2 8399 7500
www.etherstack.com
Media: Walbrook Investor Relations
Mr. Ben Knowles
T: +61 426 277 760
[email protected]

Source:
Etherstack Plc
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