ASX Tech Stocks: Bluechiip drops 15% as FY21 revenues fall sharply

Chip maker Bluechiip (ASX:BCT) dropped 15% today after announcing big revenue drop of 78.2% for FY21.

The company made $51,133 – down from $184,497 last financial year – which it said was partially a result of its lawsuit against Labcon North America for the termination of a development and supply agreement.

However, private mediation saw the companies end their dispute and enter into a settlement agreement on 22 June 2021, where Labon agreed to pay the company US$850,000 cash and return US$750,000 worth of Bluechiip delta tags.

The agreement settlement sum has been recognised as deferred revenue – which will be recognised over the term of the new supply agreement with Labcon and on receipt of the returned goods.

The company also had a 25% decline in operating expenses with reduced R&D activities spend of $1,212,537 (compared to $2,709,511 in2020).

Other ASX tech stocks with news out today:

Nexion Group (ASX:NNG) unchanged

Cloud infrastructure provider Nexion remains unchanged today, even after announcing a strong start to FY22 with a 50% increase in total contract revenue for Q1.

The company signed additional multi-million-dollar service contracts with IBM Australia Ltd (NYSE:IBM) to add more products – including NEXION OneCloud Infrastructure as a Service (IaaS), on-site support and additional managed services for projects in Western Australia.

This, plus additional business at Clough has increased new total contract value (TCV) of $5.1million to around $15 million.

Dug Technology (ASX:DUG) -6.78%

Despite signing a US$8.7million binding heads of agreement (HOA) with HODL Ranch Mining LLC today, shares in Dug Technology fell by 6.78% in morning trade.

The HOA includes supply of high-performance computing (HPC) infrastructure, which will be hosted in DUG’s Houston data centre at Skybox and utilise the DUG Cool immersion technology.

“[The agreement] is a testament to our green, energy-efficient HPC technology and ability to deliver tailored solutions,” DUG managing director Dr Matthew Lamont said.

The company also announced it had refinanced its US$17,805,000 term debt facility with the Commonwealth Bank – extending the expiry date from 7 January 2022 to 1 July 2022.