The Audinate Group Ltd (ASX: AD8) share price is on course for a strong finish to the week.
In morning trade, the audio over IP networking solution provider's shares are up 6% to $9.15.
This leaves the Audinate share price trading within touching distance of its record high.
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Why is the Audinate share price charging higher?
The catalyst for the rise in the Audinate share price has been the release of an update on its performance in FY 2021.
According to the release, the company achieved revenue of US$25 million in FY 2021. This was an increase of 23% from the US$20.4 million it achieved a year earlier.
This follows an extremely strong fourth quarter performance, which saw the company's revenue increase 74% over the prior corresponding period.
Supply chain concerns
Possibly holding the Audinate share price back a touch today was management's commentary on the supply chain.
It warned that uncertainties in the global supply of chips and electronic components continue to be a near-term risk for both Audinate and its Original Equipment Manufacturer (OEM) customers.
Nevertheless, Audinate was able to meet customer demand for chips and modules over the past few months despite minor impacts from a COVID-related shut-down of its contract manufacturer's plant in Malaysia and some under-delivery of raw materials from suppliers.
It also notes that that increasing component lead times and requests by chip manufacturers for demand visibility up to 12 months out have resulted in a record backlog of committed sales orders for FY 2022.
Management commentary
Audinate's Co-founder and CEO, Aidan Williams, commented: "We are pleased with the FY21 revenue performance and the resilience of the business in the face of COVID related challenges over the last 15 months. The recent launch of the first Dante video products manufactured by our customers was another substantial milestone and market feedback has been encouraging. While Audinate and our manufacturing customers have successfully navigated supply chain challenges to date, we expect continued uncertainty throughout the remainder of CY21."
Commenting on its outlook, Williams said: "The strong finish to the year, together with the record backlog of sales orders, means that Audinate is well placed to return to US$ revenue growth in the historical range and consistent with current market expectations in FY22."
