Audinate exceeds forecasts as strong revenue growth drives positive EBITDA and profit

Revenue growth of 30 per cent to A$19.7 million, exceeding Prospectus forecasts of A$18.6 million. EBITDA increased to $A0.6 million. NPAT increased to A$2.5 million.
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In its first full year as an ASX-listed company, digital-audio visual company Audinate Group Limited (AD8) experienced strong revenue growth of 30 per cent to A$19.7 million, exceeding Prospectus forecasts of A$18.6 million.

As the leading global provider of professional audio networking technologies, Audinate’s patented Dante platform distributes high quality digital audio signals from the AV industry’s professional-grade audio devices over computer networks – bringing the benefits of IT networking to the AV industry.

Audinate CEO Lee Ellison said the company performed strongly in FY18 with revenue growth driven by a 38 per cent increase in shipments of Dante chips, cards and modules to approximately 248,000 units while more than 450 products were added to its product range over the year. Audinate also grew the number of original equipment manufacturers (OEMs) adopting Dante to 438 manufacturer brands, up from 369 for the same period last year.

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“We are very pleased with the performance and execution of our growth strategy that delivered a set of results exceeding the Prospectus forecasts we set for FY18. During the past financial year, Audinate continued to increase the penetration of our Dante audio networking technology across the professional audio-visual market. New products revenues from our Dante Domain Manager software and Dante AVIO adapters also exceeded the Prospectus forecast,” he said.

In addition to sales of chips, modules and cards, Audinate also generated software and royalties – 150,000 units of software were sold in FY18, a 58 per cent increase on FY17 figures. Consistent with the prior year, its gross margin remained strong at approximately 75 per cent.

Audinate’s net profit after tax increased to A$2.5 million in FY18, up from a $20.4 million loss in FY17, boosted by a one-off A$2.4 million subsidy for moving into a tax consolidated group in Australia.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) also exceeded expectations at A$0.6 million, up from forecast of a loss of A$1.2 million.

In the second half of the 2018 financial year, Audinate successfully launched Dante Domain Manager and a range of Dante AVIO adapters with the initial sales of these products exceeding the A$0.7 million Prospectus forecast for FY18. The company also demonstrated a video prototype at InfoComm in June 2018, which is expected to launch commercially by the end of FY19.

These new products position the company for continued revenue growth over the coming year, supported by further investment in R&D. Audinate’s key priorities in FY19 are to expand its geographical sales and support footprint; broaden its suite of core Dante products to accelerate penetration within OEMs; and invest in the development of the Dante video solution.

“Ongoing growth in the core business will be augmented by contributions from the Dante AVIO adapters and Dante Domain Manager products launched during FY18,” Mr Ellison added.

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