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Coronavirus: Strong demand sends this ASX tech share 17% higher

The MNF Group Ltd (ASX: MNF) share price has been a very strong performer on Thursday.

The communications technology company’s shares were up approximately 17% at one stage this morning.

At the time of writing the MNF Group share price is up 12.5% to $3.33.

Why is the MNF Group share price rocketing higher?

Investors have been scrambling to buy the company’s shares this morning after it reaffirmed its guidance for FY 2020.

It continues to expect FY 2020 EBITDA in the range of $36 million to $39 million.

Given how many companies have been withdrawing their guidance this month such as Accent Group Ltd (ASX: AX1) and Flight Centre Travel Group Ltd (ASX: FLT), this development went down especially well with the market.

Increasing demand.

Management advised that the company is currently experiencing strong demand for core products across its three operating segments – Global Wholesale, Domestic Wholesale and Direct.

According to the release, the key product in demand is Australian based phone numbers, which are used for collaboration and conferencing applications.

This is likely to have been driven by the countless businesses across the country which are working from home in an effort to combat the spread of the coronavirus.

In addition to strong demand for numbers, management advised that is also currently experiencing higher than normal usage volumes across all segments.

Though, the company acknowledges that the situation is evolving rapidly. And while currently there is strong demand for its services, the external environment remains uncertain.

Like many of its customers, MNF has instigated its business continuity plans. This means that all of its employees will be capable of working from home using MNF’s own collaboration products and technology to operate the business remotely.

The company intends to update the market with any further trading and operational developments as and when they occur.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of MNF Group Limited. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited. The Motley Fool Australia has recommended Accent Group and MNF Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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