Tesserent hits earnings targets, on the acquisition trail with new $10m loan
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Cybersecurity platform Tesserent (ASX:TNT) told the market it’s hit some key trading milestones in a business update this morning.
The company said revenue in the June quarter was high enough to be extrapolated into an annualised rate of at least $40m.
While Tesserent didn’t provide the revenue figures specifically, it said the result was the criteria for one of its core trading objectives outlined in its March quarter 4C filing published on April 28.
In addition, Tesserent said unaudited figures also pointed to a positive core-earnings result in June, as well as net-positive cash flows from operations — a key metric for small caps looking to achieve economies of scale.
Shares rose by around 20 per cent in morning trade to 9.8c, just off 2020 highs of above 10c reached in early February.
Tesserent also provided details on a new funding arrangement, where it rolled over existing debt facilities with debt provider PURE Asset Management.
The new $15m facility will replace the company’s existing $5m loan, with a revised interest rate of 8.9 per cent (down from 11.5 per cent).
Tesserent said the funds would be used to facilitate “earnings-accretive acquisitions”, three of which are already in progress.
PURE director Nick Berry said the company’s client base comprising both companies and government agencies left it well-positioned to benefit from the increased focus on cybersecurity services.
The sector has increasingly come into focus during the pandemic, amid broader geo-political tensions and some high profile attacks such as last week’s Twitter hack.
“Recent news flow from the Morrison government only strengthens the likelihood of the industry continuing to deliver structural growth materially in excess of GDP,” Berry said.
The four-year loan term includes 43,750,000 warrants that become exercisable when the Tesserent share price reaches 12c per share.
Semiconductor technology developer BluGlass (ASX:BLG) announced the launch of a commercial-scale platform for its patented manufacturing process — the remote plasma chemical vapour deposition (RPCVD) system.
BluGlass said the RPCVD had been “successfully retrofitted” onto an existing platform called the AIXTRON 2800 G4. Developing the proof of concept was integral to its commercial scaling ambitions for the RPCVD technology, which creates an improved manufacturing process for semiconductors by facilitating cooler temperatures.
Shares in BluGlass rose by more than 20 per cent in morning trade to 5.4c, still off the 12-month highs of 14c reached last October.