AUDINATEGL FPO (ASX: AD8), also known as Audinate, revealed record revenues and profits in its first half results this morning. Its share price rose 1% to $2.83 at the time of writing. Revenue grew 34% to $8.8 million, and net profit after tax (NPAT) grew to $2.2 million from a loss of $16 million last year.
Notably most of Audinate's profit came from a one-time tax benefit. Earnings before interest, tax, depreciation, and amortisation (EBITDA) were just $86,000. Audinate burned through around $1 million in cash in the half (excluding some one-off payments). The company is well funded with $14 million in cash and no debt.
US-dollar revenues grew 39% compared to the previous half, thanks to a big increase in sales volumes of Audinate's Dante chips, cards, and modules, and the repeat revenues associated with software and royalties.
The number of original equipment manufacturers (OEMs) carrying Dante-enabled products grew from 346 to 392 OEMs. The number of Dante-enabled products in the market grew 33% to 1,292 products. This growth should help underpin future demand for Dante products and software.
Over the full year, Audinate management expects to meet their prospectus forecasts, which include A$18.6 million in revenue and a full-year EBITDA loss of $1.2 million at a constant exchange rate. Management will continue investing in new products to broaden their market opportunity, and expects to report a positive EBITDA year in 2019.
