The Audinate Group Ltd (ASX: AD8) share price is on the move on Wednesday following the release of a trading update.
At the time of writing, the professional audio-visual media networking solutions provider's shares are down 1% to $7.72.
What did Audinate announce?
This morning Audinate revealed that it generated unaudited revenue of US$11.1 million for the six-month period ended 31 December.
This was in line with the prior corresponding period, which was pre-COVID, and up from US$9.3 million during the second half of FY 2020.
However, the strengthening of the Australian dollar versus the US dollar has adversely impacted its revenue in the local currency. For the half, revenue came in at approximately A$15.4 million, which is down from A$16.1 million a year earlier.
Audinate's CEO, Aidan Williams, commented: "Our first half revenue result is pleasing, yet we remain cautious of the near-term economic uncertainty associated with the ongoing impacts of COVID-19 around the world. However, our strong balance sheet has enabled us to remain focused on our medium-term strategic priorities."
Video development team established.
Following an unrelated corporate acquisition in Cambridge, United Kingdom, Audinate revealed that it has been able to attract and establish an experienced video development team of 11 employees.
The release advises that the onboarding of four team members has been completed, with the remainder commencing over the coming months. After which, Audinate expects the team to be further strengthened by the end of the financial year.
These initiatives are estimated to result in additional cash expenditure in FY 2021 of approximately A$1.3 million to A$1.5 million. A portion of this will be capitalised in accordance with the existing policy on capitalisation of development costs.
Mr Williams commented: "The establishment of a dedicated video team significantly increases the level of video expertise and experience within Audinate and improves our ability to execute more swiftly on our video strategy. The addition of the VP of Strategic Partnerships is another important step in being able to execute on other business opportunities, which are emerging more regularly."
