Audeara (ASX: $AUA) Q3 FY24 Quarterly Activities Report & Appendix 4C Update

Audeara Ltd (ASX: $AUA) has reported a record quarterly cash receipts of $1.12m for the quarter ended 31 March 2024. The company also achieved net positive operating cash flows, supported by a $2.1m Purchase Order for AUA Technology by a global musical instrument manufacturer. Additionally, Audeara advanced opportunities for AUA Technology in large Asian markets through strategic partnerships and witnessed a 64% increase in Australian wholesale revenues in FY24. The company also received a $673,000 R&D Tax Refund and implemented ongoing cost optimization initiatives, resulting in reductions in operating expenditure on a Prior Comparative Period (PCP) basis.

Executive Commentary on Q3 FY24 Performance

Chief Executive Officer, Dr James Fielding, expressed satisfaction with Audeara's trading update for the March quarter, highlighting the achievement of net positive cash flows from operations and the momentum in global expansion strategy. Dr Fielding emphasized the significant growth for the AUA Technology division, particularly with the receipt of a $2.1m purchase order from a major global music instrument manufacturer. He also underscored the company's successful execution of its strategy to leverage the IP from its hardware products into profitable licensing solutions with global third-party providers. Dr Fielding expressed confidence in Audeara's increasing foundation to expand its global revenue profile and hinted at providing more updates on the successful application of their white-label technology for the rest of 2024 and beyond. He also mentioned the company's traction in its core Australian hardware markets and ongoing discussions with commercial partners in European and Asian markets.

Summary of Q3 FY24 Performance and Outlook

Audeara's Q3 FY24 performance showcased record cash receipts, net positive operating cash flows, and a strong financial position with $2.1m in cash or equivalents at 31 March. The company's achievements in securing a $2.1m purchase order and advancing opportunities in large Asian markets demonstrate its potential for significant global revenue expansion. With ongoing cost optimization initiatives and a reduction in operating expenditure, Audeara is well-positioned to convert its product suite and distribution channels into increased revenues and group earnings. The company's strong cash position and momentum in global markets for the AUA Technology division provide a positive outlook for executing growth initiatives in 2024. Audeara's strategic partnerships and successful application of its technology are expected to further strengthen its international footprint and future revenue profile.