All amounts are in thousands of USD, unless otherwise specified.
-- Revenue: revenue was $2,916 down 40% on the prior corresponding period (“pcp”). The decrease is primarily due to project delays outside of Etherstacks’ control but also reflects the inherent nature of Etherstack’s revenues which may be volatile when driven by a small number of large projects and associated milestones which often balance out in the subsequent half
-- EBITDA: EBITDA is ($543) down from $2,216 in the pcp
-- Statutory net profit/(loss) after tax: Statutory net loss after tax is ($1,467) a decrease from $1,654 for the pcp
-- Full year guidance: notwithstanding the project related decrease in first half revenue, management expects delayed first half milestones on a major project to be realised in the second half balancing out the full year result. Management has provided full year guidance to the market of revenue between $9,100 and $10,100 based on contracted revenues and discussions with existing customers in relation to second half deliveries and expects the company to remain profitable and operating cashflow positive as in the past several years
-- Significant progress made on major projects: the Group has delivered scheduled milestones on the LMR-IWF deployment with Samsung for the AT&T Firstnet project in the United States and are moving into the “Controlled Introduction” stage of the project in H2
-- Strategic business development: in the half year, and up to the date of this report, the Group:
---- Continued to pursue and develop opportunities for our MCX IWF product in conjunction with Samsung including the second MCX-IWF licence transaction announced 4th October 2022. This generates $1 million for Etherstack’s H2 revenues
---- Continued to pursue and develop opportunities within the Australian defence sector. Activity has commenced on the follow-on project for the Defence project announced on 7 September 2022 with major deliverables scheduled for H2 and additional deliverables next financial year
---- Continued to pursue and develop opportunities in the digital land mobile radio sector. Collectively, resource projects in this sector contributed more than $620 in the half year although none were individually large enough to be separately announced.
---- Awarded contracts by new public safety agency clients in Western Australia and a Commonwealth nation for our innovative PTT (push-to-talk)-over-Satellite product known as the IVX
-- Secured medium term funding: a funding agreement was completed with Icom Inc on 29 June 2023 securing 4 year funding terms for Etherstack to provide additional working capital in support of growth objectives.
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