ASX Tech Stocks: MSL jumps on Q1 FY22 revenue and archtis starts trading in the US

MSL increased Q1 FY22 revenue by 40% compared to FY21
archTIS starts trading on US OTCQB market
Spacetalk raises $8 million for US expansion support

MSL Solutions (ASX:MSL)

Up 4.44% today was sports, leisure and hospitality SaaS provider MSL Solutions after releasing its Q1 FY22 report.

Unaudited revenue was $7.7 million – an increase of 40% from Q1 FY22 – which the company said was driven by UK business rebound post-COVID and the positive contribution of the SwiftPOS acquisition completed in November 2020.

Strong Sales in Q1 FY22 were driven by enterprise sales deals for SwiftPOS in APAC, including new wins at AAMI Park, MyState Bank Arena, Logan City Council, Theatre Royal with Trafalgar Entertainment and NSW National Parks and Wildlife Service.

Plus the company scored additional new UK enterprise client wins for SwiftPOS with Angus Steak House and British Airways i360.

“We are pleased to deliver strong quarterly revenue growth, driven by POS sales in both our UK business and through the SwiftPOS business, ahead of venues reopening across our key markets,” CEO Pat Howard said.

“Although we have seen some deferral of investment in the APAC POS market during the September quarter, enterprise sales wins have been strong in this sector and will support revenue growth in the next quarter, together with the inevitable catch up on deferred projects.”

DUG Technology (ASX:DUG)

Dug Technology was up 3.28% on announcing a restructure of its services business line to reduce fixed costs and enhance operational efficiency across office space, projects, geographical business units and personnel.

Right-sizing office space is expected to provide annualised savings of approximately US$0.55 million, to be realised in the second half of the 2022 calendar year.
And the company expects once-off redundancy costs of around US$0.85 million will result in annualised cost savings of approximately US$4.1 million.

The company says the managing director and chief operating officer will each be deferring 20% of their salary, with the majority of the board’s non-executive directors also voluntarily deferring 20% of their fees.

While DUG says this not expected to be a long term measure, salary/fee deferment could realise savings of around US$0.225 million per month and will be reviewed quarterly.

All in all, the company expects to realise cost savings in FY22 of around US$4.2 million.

Spacetalk (ASX:SPA)

Tech communication provider Spacetalk was up 2.22% today after raising $8 million via the issue of 42,105,264 ordinary shares at $0.19 per share.

The 2-tranche institutional placement of $5.6 million and $2.4 million, will allow the company to resource its North American expansion and to meet market demand from existing distribution channels and will also fund the development of the next generation of wearable devices and applications.

“Spacetalk can now continue our European and North American expansion confident in the knowledge that we have the financial resources and shareholder support to achieve our goals,” CEO Mark Fortunatow said.

The placement issue price represents a 15.6% discount to the last closing price of Spacetalk’s shares (on 28 October 2021) and 12.7% discount to the 5-day volume weighted average price ending on that date.

The company also announced a share purchase plan to raise up to $2.5 million at the same price as the placement.

Archtis (ASX:AR9)

Secure information SaaS player archTIS was up 1.75% after commencing trading on the OTCQB Market in the United States under the symbol ARHLF.

The company says the OTCQB listing broadens its international profile and provides direct

access to US institutional and retail investors – which aligns with the company’s growing operations in the US market.

“We are pleased to be quoted on the OTCQB Venture Market due to growing demand from institutional and retail investors in the US who have expressed interest in archTIS’ global story around securing the world’s most sensitive information,” managing director and CEO Daniel Lai said.

“We believe this move will help support our efforts to scale our secure collaboration technologies across the globe and diversify our shareholder base, without impacting our existing ASX obligations.”

archTIS Global COO and US president Kurt Mueffelmann said the company is establishing deep roots in the US with a major focus on U.S. expansion including federal agencies and defence contractors.

“The OTCQB listing only further confirms that commitment,” he said.