Motley Fool Australia

The Calix (ASX:CXL) share price rips 13% higher on revenue growth

rise in asx tech share price represented by digitised rocket shooting out of person's hand
Image source: Getty Images

The Calix Ltd (ASX: CXL) share price is rocketing 13% higher into all-time record territory today after the company released its first-half FY21 results.

This brings its year-to-date returns to an eye-watering 108%. At the time of writing, the Calix share price is trading up 13.1% at $2.15.

Calix share price soars on accelerating growth 

Calix’s core technology is being used to develop more environmentally friendly solutions for advanced batteries, crop protection, aquaculture, wastewater and carbon reduction. Despite COVID-19, the company continued to grow sales from its municipal and industrial customers which are considered an essential service. 

In HY21, the company’s total revenue increased 114% to $16.27 million while operating profits ticked positive to $3.06 million compared to the $245,000 loss in HY20. 

Overview of Calix technologies 

Calix is developing multiple environmental business opportunities, all from one core technology. These industries/sectors include: 

  • Water: Water treatment, aquaculture
  • COMigration: Cement, line
  • Biotech: Crop protection, marine coatings
  • Advanced batteries: Advanced cathode and anode materials 
  • Sustainable processing: Mineral and chemical progressing 

How it works

Its core technology involves grinding minerals to between one hundredth and one-thousandth of a millimetre in size, and then flash heating them in an externally heated reactor in a very short time. As trapped gases in the minerals bubble out of the particles, they create highly permeable, honeycomb-like structures in the particles.

Calix’s technology allows for the direct separation of CO2, enabling it to be used in traditionally carbon dioxide intensive industries.

Calix is currently targeting all the above industries, seeking to expand revenues, margins, project execution and deal flow across multiple geographies. 

Water is a key segment for the business, having completed 3 US plant upgrades and commenced construction of a fourth US plant. The company signed its first memorandum of understanding (MOU) with a European partner with paid trials underway.

The company remains poised to re-establish aquaculture sales in China and targeting new markets post-COVID. This segment generated a majority of the company’s revenues, with water treatment sales up 159% on pcp to $9.14 million. 

Outlook

The Calix share price has been riding the momentum behind the renewables industry. The company will continue working towards the FY21 targets across each segment.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Related Articles…