Harris Technology Group Q3 FY24 Activity Report

Harris Technology Group Limited (ASX: $HT8) has released its activity report for the March 2024 quarter, reporting sales revenue of $4.5M. The company recorded a net operating cash outflow of $582K and had $1.0M cash on hand with $6.3M undrawn on financing facility. Inventory on hand remained flat at $4.2M, with a continued focus on higher-margin products and cash preservation.

Executive Commentary on Q3 FY24 Performance

Harris Technology CEO, Garrison Huang, stated, 'We have continued to navigate the difficult retail landscape with prudent cash management. The ongoing focus on higher-margin products is improving our average margins. Having identified a good growth opportunity in refurbished tech products, we are recording increasing success in this vertical where there is lower competitive activity. Harris Technology has an advantage in this space due to our established eCommerce presence and expertise across the tech products supply chain as consumers continue demonstrating higher price sensitivity due to the macroeconomic headwinds.'

Summary of Q3 FY24 Report and Outlook

Harris Technology Group's Q3 FY24 report reflects subdued sales in line with the cyclical effects of the retail sector post-Christmas. The company's focus on higher-margin products and cash preservation has contributed to the improvement in average gross margins. The increasing success in the refurbished tech products vertical presents a growth opportunity for the company, leveraging its established eCommerce presence and expertise across the tech products supply chain. With no requirement to raise capital in the foreseeable future, Harris Technology aims to continue navigating the challenging retail landscape while capitalizing on the potential to increase the scale of its refurbished product sales and consistent sales from the Household category.