The Audinate Group Ltd (ASX:AD8) share price was trading 19% lower on Monday at lunchtime after the audio-visual software business provided its latest batch of results to investors.
For context, the broader Australian share market or S&P/ASX 200 (ASX: XJO) was trading at 6987.1, down 2.13%.
Who is Audinate Group?
Audinate is a provider of digital Audio-Visual (AV) networking technologies. The company’s Dante platform distributes digital audio signals over computer networks, and is designed to bring the benefits of IT networking to the professional AV industry.
Featured video: how to do a DCF analysis
In the Rask Education video above, I explain in great detail how to conduct a Discounted Cash Flow (DCF) analysis on a business. To take the full valuation course (which is free), click here to go to Rask Education.
5 financial headlines from Audinate’s report:
- Total Dante-enabled devices rose 35% to 2,371 (1H19 1,639)
- Revenue was $16.1 million, up 14%
- Gross profit was up 20% to $12.5 million
- Statutory net profit was $341,00, down 60%
- Operating cash flow was $2.9 million, up from $551 million
“Audinate has continued to deliver against its strategic objectives with ongoing revenue and gross profit growth, underpinned by growth in software sales,” Audinate CEO, Aidan Williams said.
“The Dante ecosystem continues to expand and interest in Dante is stronger than ever with a record 147 new Dante enabled products released at the recent Integrated Systems Europe (ISE) Tradeshow.”
Pleasingly for investors, Audinate said the interest in its Dante system was “stronger than ever” with nearly 20,000 professionals trained with the technology during the period.
Looking towards the future Audinate says it expects uncertain macro conditions to continue in light of US tariffs and the Coronavirus impact. While the company does indeed expect revenue growth for the second half it acknowledged the temporary weaknesses and expects to report growth slightly below its historical average.
“We are pleased to have deepened Dante’s position as the de-facto standard in audio networking and remain excited by the growth opportunities presented by Dante AV,” Williams said.
“We remain confident in Audinate’s position to capitalise on the analogue to digital transition that is gathering pace within the AV industry.”
Audinate Group shares were last seen trading at $6.22, giving the company a market capitalisation more than $400 million.
Online Value Investing Course - FREE!
How do you value an investment? Do you really understand what you’re investing in and why?
We’ve just updated our FREE business valuation course and made it available to investors like you. Complete with models, templates and tools, simply click here to access the course.
It’s completely free!
Disclaimer and warning: The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms of Service and Financial Services Guide before using this website.