The Audinate Group Ltd (ASX:AD8) share price was trading 19% lower on Monday at lunchtime after the audio-visual software business provided its latest batch of results to investors.
Audinate joins the ranks of Reliance Worldwide Corporation Ltd (ASX: RWC) and WiseTech Group Ltd (ASX: WTC) is being struck down during the first round of 2020’s reporting season.
For context, the broader Australian share market or S&P/ASX 200 (ASX: XJO) was trading at 6987.1, down 2.13%.
Who is Audinate Group?
Audinate is a provider of digital Audio-Visual (AV) networking technologies. The company’s Dante platform distributes digital audio signals over computer networks, and is designed to bring the benefits of IT networking to the professional AV industry.
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5 financial headlines from Audinate’s report:
- Total Dante-enabled devices rose 35% to 2,371 (1H19 1,639)
- Revenue was $16.1 million, up 14%
- Gross profit was up 20% to $12.5 million
- Statutory net profit was $341,00, down 60%
- Operating cash flow was $2.9 million, up from $551 million
“Audinate has continued to deliver against its strategic objectives with ongoing revenue and gross profit growth, underpinned by growth in software sales,” Audinate CEO, Aidan Williams said.
“The Dante ecosystem continues to expand and interest in Dante is stronger than ever with a record 147 new Dante enabled products released at the recent Integrated Systems Europe (ISE) Tradeshow.”
Pleasingly for investors, Audinate said the interest in its Dante system was “stronger than ever” with nearly 20,000 professionals trained with the technology during the period.
Looking towards the future Audinate says it expects uncertain macro conditions to continue in light of US tariffs and the Coronavirus impact. While the company does indeed expect revenue growth for the second half it acknowledged the temporary weaknesses and expects to report growth slightly below its historical average.
“We are pleased to have deepened Dante’s position as the de-facto standard in audio networking and remain excited by the growth opportunities presented by Dante AV,” Williams said.
“We remain confident in Audinate’s position to capitalise on the analogue to digital transition that is gathering pace within the AV industry.”
Audinate Group shares were last seen trading at $6.22, giving the company a market capitalisation more than $400 million.
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