Harris Technology breaks another sales record
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Pure e-commerce play Harris Technology notches record sales for the quarter as gaming products fly off the shelves.
Pure-play e-commerce business Harris Technology (ASX:HT8) says that its strategy in expanding into the gaming category has paid off, after reporting a record-breaking Q3 sales and having anticipated increased demand from graphics cards as a result of rising Bitcoin prices.
The company reported unaudited sales of $10.4 million for the quarter, a 206 per cent increase from $3.4 million it produced in the same period last year.
Total unaudited revenue to March 2021 came in at $30 million, compared to $7.48 million in the same comparable period last year. This represents a smashing 300 per cent increase.
This follows the 370 per cent increase in revenues reported in the last half to December 31.
The significant performance delivered during the quarter was mainly the result of the company’s entry into the gaming sector – leveraging on its existing strength in the local market, where HT8 maintains its ranking as the number one technology seller on Amazon Australia, while at the same time increasing its market share on eBay and other eCommerce sites. Included in the gaming category of their products was custom-built PC components and graphics cards, two items that have been in huge demand from Bitcoin miners seeking to capitalise on all-time high BTC prices.
HT8 says that it’s been able to stay ahead of the curve and experience exponential growth by pre-empting market trends.
Harris Technology CEO, Garrison Huang, says this strategy has paid handsome dividends for the company.
“Recent demand on gaming graphic cards due to high Bitcoin prices has increased our gaming product revenue,” Huang said.
“By identifying market trends and proactively working with vendor partners, we are able to consistently secure supply, and ensure healthy stock levels of the most in-demand products, capitalising on these commercial opportunities.”
Along with high-end graphic cards, custom-built PCs, gaming mice, and keyboards are also products that have seen continuing strong demand in the gaming space.
According to the company, the global gaming market is worth about US$162.3 billion in 2020, and is expected to grow to US$295.6 billion by 2026 – a 10.5 per cent CAGR growth.
The Asia Pacific region remains the largest market in this category, as the Covid-19 brought about increased gaming activities, as well as remote learning trends, way beyond the peak of the pandemic.
This pre-emptive push into the gaming category followed similar agility displayed by Harris Technology 12 months ago at the beginning of the pandemic when launching their Pro-Hygiene brand. The pivot at the time shored up stock for Harris Technology during hygiene product shortages around the country and delivered more than $2 million in revenue from Pro-Hygiene sales off a standing start as a bolt-on to their flagship IT and electronics business.
HT8 has been busy signing up reseller agreements to expand its product range.
The latest reseller deal involves signing up ASX-listed smart lighting business, Buddy Technologies (ASX:BUD). Under the terms, HT8 will be appointed as an authorised reseller of Buddy’s LIFX Smart Lighting products.
It has also signed a deal with UK-listed MYSALE Group, where MYSALE will integrate HT8’s leading range of tech electronics products into the marketplace platform for its Australian ecommerce network.
Discussions are ongoing with other gaming products and home appliance brands to increase its product range even more. The company has supported this expansion by also expanding its warehouse capacity and working closely with long-time vendor partners around the world.
Harris Technology no longer operates any physical shopfronts – all businesses are now conducted online both on www.ht.com.au, and via the major online platforms such as Amazon, Kogan, Catch and eBay etc.
Its share price rose by 15 per cent on this announcement, and has surged by 650 per cent in the last 12 months.
This article was developed in collaboration with Harris Technology, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.