Audinate is strongly positioned to withstand significant changes...

Audinate is strongly positioned to withstand significant changes in sector and economic conditions, with over A$30.9 million cash on hand at 31 March 2020, and no debt.

As it stands, the backlog of committed but unfulfilled sales orders from April onward is higher than the average month end backlog for the previous eight months of FY20.
Over the past six weeks Audinate’s main focus has been the safety and wellbeing of employees, contractors and customers. Reflecting the potential for knock-on economic downturn, the Company has acted to reduce costs, moderating its near term recruitment plans. Marketing and travel expenditure have been curtailed and the Company is actively monitoring all other discretionary expenditure.

Whilst it is very challenging to predict the potential impact of COVID-19 on the day-to-day chips, cards and modules business, we continue to make progress toward strategic and longer term milestones. Notably, Audinate achieved an important video milestone last month, delivering the Dante AV Product Design Suite to Yamaha. This product is a turn-key networked video product design, enabling manufacturers to rapidly develop and release Dante video products.

STRONG BUY at $5.82 (IMO)