Etherstack's H1 2024 Financial Results

Etherstack plc (ASX:ESK) has reported its results for the half year ended 30 June 2024. The company's revenue increased by 14% to $3,258 from $2,853 in the restated prior corresponding period. The half year EBITDA is ($177), up 21.7% from ($226) in the restated prior corresponding period. The Group had strong cash receipts of $4,575 in the half year, compared to $2,889 for the prior corresponding period, and had a positive operating cashflow of $869. Statutory net loss after tax is $1,486, an increase from $1,150 loss for the restated prior corresponding period. Management expects a significantly stronger second half as milestones for contracted projects are delivered, balancing out the full year result as seen in recent years.

Executive Commentary on H1 2024 Results

Etherstack's Chief Executive Officer, David Deacon, commented, 'Our primary focus in three related market verticals, digital land mobile radio, mission critical push to talk over cellular and defence communication networks is progressing well with advances in each vertical. While the headline revenue number for the half year is an increase on the prior year, the revenue results for both half year periods reflects some volatility in revenue driven by project revenues derived from a small number of large projects. We look forward to posting new wins before year end.'

Summary of H1 2024 Results and Outlook

Etherstack's H1 2024 results show a 14% increase in revenue, driven by project revenues from defence customers and growth in support revenues. The company expects a stronger second half as milestones for contracted projects are delivered. Significant progress has been made on major projects, and strategic business development continues in multiple international markets with Samsung and other top-tier communication companies. Etherstack's ambitions include further opportunities within the defence sector and the expectation of being awarded further projects during H2. The company has also demonstrated customer satisfaction with its technical solutions and ongoing support. With the expectation of material project revenues in H2 of 2024 and beyond, Etherstack remains optimistic about its future performance and growth prospects.