30 June 2021 Half Year Results Presentation
Core network products are high margin. These software based solutions typically include long term support contracts.
Etherstack core revenues are transitioning to an Enterprise SaaS (software as a service) model. This is due to migration of existing PTT network solutions from specialised infrastructure hardware to network cloud based services.
Etherstack's software is underpinned by complex intellectual property developed over the course of 20+ years, with a Global teaming partnership with Samsung Electronics with respect to Mission Critical Push To Talk (MCPTX) over LTE to drive additional growth.
Etherstack has a globally diversified client base and maintains R&D and support offices in the UK, US, Japan and Australia.
1H CY21 Financial Highlights
- Revenue Growth: revenue is US$4.3m up 79% on the prior corresponding period ("pcp"), with growth across all revenue streams:
o Recurring revenues from long term support contracts have increased 30% from pcp
o Royalty revenues driven by sales of licencee products which incorporate Etherstack technology and have increased 129% from pcp
o Strong project revenues
- Strong EBITDA result: US$1.5m EBITDA for the half year (US$0.8m for the pcp)
- Net profit after tax: US$0.8m profit for the half year (US$2.3m loss for the pcp)
- Reduced Borrowings: the Company continued to pay down debt during the first half of FY2021
- Increased investment in R&D and development of new office and engineering facility in Sydney
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About Etherstack Plc
Etherstack (ASX:ESK) 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.