ASX Tech: Vection boards the Metaverse bandwagon, while CV Check gets off to a flyer in Q2
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Up 15.38% was workforce management and reporting tech company CV Check.
The company announced a strong start to Q2, with positive operating cashflows of $400,000 in October, with $12.6 million in the bank.
October revenue was $2 million, which is up 81% on the previous corresponding period (pcp) and October cash receipts were $2.3 million, up 99% on pcp
CV1 added that momentum looks strong, with November currently on track to exceed the October results.
“With strong recent employment demand across the region, CV1, has seen a corresponding uptick in order flows, further validating our strategy of pursuing a B2B focus,” CEO Michael Ivanchenko said.
“CV1’s innovations, such as our Covid-vaccine status check, continue to gain traction with a market needing certainty and reliability as it grows.”
“We are confident that as the full benefits of our workforce compliance monitoring and management software, Cited, are brought to the market, CV1 will be able to accelerate further growth through the balance of FY22.”
The real-time software player was up 7.5% in early morning trade today.
Vection has just unveiled its FrameS ‘Metaverse’ release, in anticipation of becoming an Embedded App within Webex in the second half of FY22.
Essentially this would be combining the 3D worlds capabilities of FrameS with Webex’s video conferencing and online meetings tools, Vection said.
It would allow organisations to autonomously build self-contained immersive metaverses: enterprise focussed, dynamic 3D worlds where people can participate equally from anywhere in the world, the company added.
VR1 said the Metaverse release is being rolled-out to its existing user base including, among others, high-end fashion retailer Giorgio Armani and luxury yachts manufacturer Ferretti Group.
“Vection has always been a true believer in virtual 3D worlds, where organisations and people can connect and collaborate to create value” managing director Gianmarco Biagi said.
“Today, following years of development, we believe we are on the cusp of a major adoption revolution, where, via Webex’s established user base and Vection’s critical metaverse-focussed technology, we can play a major role in framing the future of the XR industry and the metaverse to come.”
The company said the ‘Metaverse’ term has recently received significant interest, with leading technology companies Facebook (Meta) and Microsoft (Mesh for Microsoft Teams) positioning themselves to develop tools and solutions for the new internet to come.
The wireless tech company was up 8.6% today.
The company reported an increased revenue guidance of US$8.4m to US$8.6m for FY21 – an increase of between 77% and 83% over FY20 full year revenue.
Etherstack puts this down to US infrastructure spending at the state and local government level is expected to drive significant growth in digital LMR networks.
CEO David Deacon said that with global infrastructure and domestic defence spending predicted to be particularly strong over the next 5 plus years, Etherstack is poised for significant growth in its core business areas.
“The high margins associated with software delivery and strong growth in our recurring revenues derived from long term support contracts point to sustainable and increasing profitability for the foreseeable future,” he said.
Plus, the focus on sovereign defence capabilities and associated government spend in Australia and UK provides management with a longer-term positive view for the company’s burgeoning defence business within these markets over 5-10 years.
Down 15.5% today was video tech company Atomos.
The company has entered into a Cloud Development Agreement with Cinemacraft Inc to fund the completion of its Videogram platform.
In addition, Atomos will receive an option to acquire all shares in Cinemacraft.
It’s all part of the company’s strategy to build on its depth in video and multi-camera capture to expand into cloud-based services – with Atomos to leverage Cinemacraft’s technology to accelerate its own cloud platform.
Atomos has signed a Software Development Agreement committing US$ 1.2 million and expects to invest up to US$0.8 million for patents and to oversee Videogram’s development through to commercialisation.
Plus, the company may exercise its option to acquire all shares in Cinemacraft based on a valuation linked to the financial performance of the Videogram platform over two 12-month periods: ending September 30, 2023.
The founder and CEO of Cinemacraft, Sandeep Casi, has joined Atomos as a senior executive and is contributing to Atomos’ cloud strategy.
“When you combine Sandeep’s experience developing technology at Fuji Film and ILM for Lucas Films, with his passion for using machine learning to simplify a creator’s journey, you can see Videogram is poised to reinvent the way online video is discovered, consumed, shared and monetised,” Atomos CEO Estelle McGechie said.
The SaaS enterprise resource planning (ERP) player was down 3.25% in early morning trade.
The company reported its financial results for the year ended 30 September 2021, with profit before tax up 19% at $97.8 million, and SaaS annual recurring revenue (ARR) up 43% at $192.3 million organically.
The company said it achieved a ‘watershed milestone’ during the year, announcing the end of its On-Premise business by October 2024 – which is expected to drive the SaaS business.
TNE also said its on track to hit its target of $500 million + ARR by FY26 off the back of the end of its On-Premise business.
It could be an achievable goal, with current ARR at $257.5 million, meaning an additional $242.5 million of ARR is needed in the next 5 years.
Plus, ARR is at 90% of total revenue which means the majority of the company’s revenue is locked in at the start of the financial year, positioning them well to achieve strong growth in the new year.
“We expect by FY24 our Total Revenue will be growing by 15%+ per annum with the cessation of our On-Premise business,” the company said.