Audinate Sales Surge In June Quarter Audinate has confirmed its...

Audinate Sales Surge In June Quarter

Audinate has confirmed its technological dominance of the professional AV industry, beating prospectus forecasts and securing strong operating cash flow in the June quarter.

-Well capitalised to invest in strategic growth initiatives
-Cash receipts increased 34% in the June quarter
-Strongest sales in June quarter since inception

By Eva Brocklehurst

Audinate ((AD8)) has beaten prospectus forecasts after a significant June quarter and confirmed its dominance of the professional audio-visual market. Shaw and Partners welcomes the quarterly numbers as the business continues to surpass its "lofty" expectations, which were set in the wake of a robust first half and after a recent site visit.

The audiovisual addressable market is more than $450m annually, according to industry calculations. However, this number excludes post-production equipment and specialist broadcasting, part of Audinate's remit.

The company's fourth quarter is typically its strongest and this reflects OEM partner product launches in line with large industry trade shows. FY18 operating cash flow of over $1m was helped by flows of more than $1.7m in the June quarter.

Shaw and Partners notes operating cash flow was strong despite higher proportionate product manufacturing, operating and advertising costs in the fourth quarter, exceeding its forecast of $200,000.

Canaccord Genuity considers the company well capitalised to invest in a number of strategic growth initiatives, aiding its Dante product in the medium term. Dante incorporates IT into the professional AV industry.

Market Leader

Audinate leads its market with over 80% share of its segment. Canaccord Genuity suggests the company's product is quickly becoming a default standard for system integrators/installers and OEMs.


Original article:
https://www.fnarena.com/index.php/2018/07/26/audinate-sales-surge-in-june-quarter/