Harris Technology Group (ASX:HT8) achieves record revenue in Q1 FY21Consumer DiscretionaryASX:HT8 MCAP $40.79M
Jessica De Freitas Markets Reporter [email protected] 29 October 2020 14:22 
CEO, Garrison Huang (left)
Source: ARN
- IT and electronics consumer business Harris Technology Group (HT8) has achieved $9.8 million in revenue for the September quarter marking the highest amount of revenue Harris has achieved in one quarter
- Harris reported positive sales which it attributed to its Pro-Hygiene sanitiser range and a public shift to working, learning and shopping from home
- The business spent over $11.3 million on inventory but says it is now well-positioned and prepared for upcoming sales events such as Black Friday, Cyber Monday and Christmas
- At the end of the quarter, Harris had $3.34 million - an increase from the $1.19 million it started with
- Company shares have dropped 9.38 per cent and are trading for 14.5 cents
Harris Technology Group (HT8) has achieved the highest quarterly amounts of revenue and profit before tax in the September quarter.
The record figures came in at $9.8 million in revenue and $835,000 of profit before tax. The revenue is solid as it marks a significant increase from the $2 million in Q1 Fy20 and the $6.8 million reported in Q4 FY20.
Harris Technology is an online IT and consumer electronics business however, it did dive into the sanitiser craze due to COVID-19. Specifically, the launch of Harris' Pro-Hygiene in
April saw the company's shares spike 232 per cent.
Not only did COVID-19 cause a shift in sanitising behaviours, but, it also changed the way people work, learn and shop. This led Harris to focus more on its online electronic consumer products such as mobile phone accessories, inks and toners, antivirus software and gaming products.
The business welcomed the first quarter of FY21 with a record amount of monthly revenue. In
July alone, it achieved an unaudited revenue of $3.44 million. This is a significant climb from the $780,000 in July 2019.
The sales trend continued into August when Harris
reported a 411 per cent year-on-year increase in revenue to $3.32 million in August alone.
The company attributed this figure to Victorian Government restrictions -leading the state to buy more Pro-Hygiene products.
However, now that restrictions are easing in cities like Melbourne, Harris will not be relying on its sanitiser products for sales growth. Rather, the company has been expanding its electronic, IT and gaming products.
To support these efforts, Harris
raised $4.9 million in August and netted $4.674 million after costs.
The capital raise was aimed at funding more products to boost business growth. Inventory increased from $2.2 million at the end of June to $4.74 million at the end of September.
This increased inventory resulted in the expenditure of almost $11.7 million for Q1 FY21. This was allocated to inventory costs, advertising, staff and corporate costs, and taxes. However, Harris is now well-positioned and prepared for the upcoming trading events including Black Friday, Cyber Monday and Christmas.
"HT8 will be participating in the upcoming Black Friday/Cyber Monday sales event and expects to increase sales of its technology products during the Christmas shopping season," the company posted.
At the end of the September quarter, Harris had $3.34 million which is an increase from the $1.19 million it started with.
Company shares have dropped 9.38 per cent and are trading for 14.5 cents at 1:47 pm AEDT.
(20min delay)