NetComm confident despite revenue and profit drop

Stuart Corner
Thursday, 26 August 2010 13:50

IT Industry - Listed Tech

Netcomm has posted full year revenues and profit well down on FY09. However FY09 was a year of spectacular growth, and the company has so far maintained its FY11 guidance for strong growth.

Netcom posted full year revenues of $55.26m, down 29.6 percent, and NPAT $1.63m, down 72.4 percent. There were distinct signs of improvement in the second half with EBITDA of $3.56m v H1 of $0.886m and NPAT of $1.685m v H1 loss of $0.060m.

The company said: "Revenue and earnings for FY2010 were lower than 2009 when the company experienced unprecedented demand from carriers for its 3G products during the first half of that financial year. NetComm's international expansion strategy and focus on Mobile Broadband Gateways resulted in a significant improvement in unit sales and profitability in the second half of the 2010 financial year. The improved earnings translated into a stronger cash position with net cash increasing from $2.191m in 1H 2010 to $4.251m at 30 June 2010." NetComm's FY09 revenue was three times that in FY08 and EBITDA six times.

In June this year NetComm issued guidance that could see it generate revenues in excess of $100m in FY11 and EBITDA in the range $8.0m - $13.0m. Commenting on the FY10 result, CEO, David Stewart, said: "Momentum from the 2H 2010 result has been carried into the 2011 financial year as we continue to bring new global carrier partnerships into the NetComm Group. This is reflected in the previously released guidance for 2011."

On its outlook, the company said: "Expansion into overseas markets has been a game changing event for NetComm. The company is continuing its strong customer development in the North American and Middle East regions. The global mobile broadband market is estimated to grow well over 20 percent per annum. These forces are expected to underpin NetComm's unit sales for 2011."