ASX Tech Stocks: Codan swings a 16pc gain but LiveTiles ain’t so lucky
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Up 16.7% in early morning trade today is comms tech player Codan, which finished the half-year to 31 December with unaudited sales of $257m – an increase of 32% of the previous corresponding period.
The net profit after tax is expected to be around $50 million, an increase of 21%.
“Despite the global shortages of electronic components and the well-publicised global supply chain disruptions, we were able to successfully maintain supply to our customers and increase our inventory holdings,” the company said.
“The conscious decision to invest in increased levels of inventory places the group in a strong position as we enter the second half of FY22.”
Codan said the businesses acquired at the end of last financial year, DTC and Zetron, both exceeded its first half profit expectations.
Ai-Media Technologies (ASX:AIM)
The AI transcription and translation provider was up 5.8% today, off the back of a cashflow positive December quarterly.
You may have seen the leaked 7NEWS video last week where the anchors said what they really thought about Novak Djokovic – courtesy of a naughty AIM employee.
Anyway, the company reported cashflow from operating activities was $1.9 million for the quarter, a $5.6 million improvement on the prior comparative period (pcp) and up $1.9 million on Q1 FY22.
Revenue was $14.7 million for Q2 FY22, up 25% on the pcp, with gross margins exceeding 50% (vs 39% on the pcp).
The company said it saw increased adoption of its automated SaaS products Lexi and Smart Lexi with large international brands like FOX television group and ESPN+ in the US increasing the volumes of Lexi and Smart Lexi on live broadcast content.
“Our continued transition from a leading captioning service provider to a global technology SaaS business is well underway,” co-founder and CEO Tony Abrahams said.
“Our iCap platform minutes increased by 24% on the pcp and our SaaS product line Lexi and Smart Lexi volumes grew by an impressive 115% on the pcp.”
The developer and supplier of high-performance materials for the lithium-ion battery industry was down 7.2% in early morning trade, after announcing its intent to enter into investment and supply agreements with KORE Power, Inc.
The company’s been working with KORE since 2019, and this is the latest step in the ongoing joint effort to strengthen the North American battery supply chain, from key materials to cell and pack manufacturing for electric vehicles and energy storage systems.
“Novonix and KORE Power have been actively working together to improve battery technology utilising Novonix’s proprietary cell testing technologies, and these agreements deepen our longstanding collaboration,” co-founder and CEO Dr Chris Burns said.
Pending board approvals of both companies and the execution of definitive documentation, NVX will acquire an approximately 5% stake in KORE Power and will become the exclusive supplier of graphite anode materials to KORE Power’s large-scale battery cell manufacturing facility in the US – which will need close to 12,000 tonnes per year of graphite anode material when fully operational.
Employee engagement software player LiveTiles dropped 9.4%, despite strong H1 revenue growth of $26.7m, a 32% increase compared to 1H 2021 – and record cash receipts of $15.3m, 18% higher than pcp of $13m.
The company made a strategic investment over the period to acquire BindTuning, a leading Digital Workplace software company helping to accelerate the development of the LiveTiles Marketplace for Employee Experience solutions.
“We are leading the way in helping companies understand how to improve their own employee experience offering for their staff as well as providing the best employee experience platform to support the needs of users,” co-founder and CEO Karl Redenbach said.
“There has never been a more important time for employers to look after their employees as we are seeing today.
“We now have 2.7m contracted licences up from 2.3m at 30 June 2021 and these metrics will be our key focus going forward.”
LVT also took a minority 10% stake in a Canberra-based digital design and UX consulting business, Hide & Seek, for AUD$250k during the quarter.