The Audinate Group Ltd (ASX: AD8) share price is climbing higher today following the release of its quarterly trading update.
At the time of writing, the media networking solutions provider's shares are swapping hands for $8.03, up 2.03%.
What did Audinate announce?
The catalyst for the rise in the Audinate shares this morning has come from its quarterly trading update.
According to its release, Audinate reported robust growth for the March quarter, achieving unaudited revenues of US$7 million. The sound performance reflects a 31% increase on the prior corresponding period.
Audinate attributed the result to its newly released Bluetooth and USB-C AVIO adapters as well as an increase in customer orders. Furthermore, the company also strived to manage supply chains disruptions caused by COVID-19.
Pleasingly though, Audinate highlighted that the chips, cards, and modules revenue have continued to grow when compared to H1 FY21. Predominately, this has derived from the entire range of AVIO adaptors and Ultimo chips.
Audinate CEO Aidan Williams provided an update on the company's outlook, saying:
We are pleased with the ongoing revenue trajectory of the business and the initial contributions from our new AVIO adaptors. However, we are closely watching global supply chains for potential negative impacts on both our customers and Audinate, which may constrain our near-term revenue and growth.
Along with our manufacturing and OEM partners, we are working to mitigate supply chain challenges and expect this near-term uncertainty to resolve itself as CY21 progresses. We remain very confident in the long-term outlook for the business.
Leadership change
In further news, possibly boosting Audinate shares, the company restructured some of the leadership team.
Audinate co-founder, Dr. Varuni Witana will move into the role of chief technology officer, heading up R&D activities of technology architecture. Previously, Dr. Witana worked alongside Audinate CEO Aidan Williams to develop the core Dante technology at the National ICT Australia (NICTA).
In addition, John Rush will take up the position of chief marketing officer, expanding on his current responsibilities in sales. Prior to joining Audinate, Mr. Rush held the role of vice president of marketing and product at Vesta — an electronics payment solutions company.
Mr. Williams commented on the management change:
I am thrilled to have someone of Varuni's calibre and track record in such an important role for Audinate. I'm confident she will continue to drive our long-term strategy forward through innovation and R&D. Additionally, we are pleased to further expand Josh's role to incorporate the global sales function. His market and product knowledge combined with a strong analytical approach will bring immediate benefits to our global sales teams.
Audinate share price snapshot
Over the past 12 months, the Audinate share price has accelerated to almost 70%. Year-to-date, however, the company's shares are flat.
Audinate presides a market capitalisation of around $617 million, with more than 76 million shares outstanding.
