Special Report: The company booked customer receipts of $5.8m as sales almost doubled.
Virtual Secure Network (VSN) company Netlinkz (ASX:NET) is finding traction in global markets.
The company announced its quarterly sales result for September this morning where it booked customer receipts of $5.8m – a gain of 89 per cent from the June quarter.
The huge increase – a new record high – was underpinned by strong demand for its VSN technology in China, as well as other global markets.
It also marks the third straight quarter of top line growth, leaving Netlinkz on track to meet full-year revenue guidance of ~$15m by the end of 2020.
Investors responded well to the update, as NET shares rose to around 9c in morning trade — the highest level since January.
Global opportunity
Discussing the result, Netlinkz CEO James Tsiolis highlighted the company’s strong track record in China, where it has landed a number of key infrastructure projects through its Beijing-based subsidiary.
Along with that, Tsiolis also flagged the potential for further growth across the Asia-Pacific – particularly in India where Netlinkz can leverage its partnership with US company Natsoft Corp.
And the sharp rise in cash receipts is evidence the company is putting runs on the board as it looks to establish an enduring technology advantage in mobile data collection.
Netlinkz’ VSN device allows clients to manage their data through mobile devices with secure, high-speed transmission that can be fit to existing infrastructure.
Tsiolis said that as the company drives sales, it’s also made key improvements on the product development side.
“A key focus for our team right now is to deliver our greatly enhanced VSN 2.0 platform, which is now being rolled out to customers,” Tsiolis said.
“Enhancements to the platform ensure that we maintain a market-leading position and deliver high levels of tendering success.”
With key market opportunities in two of the world’s largest economies, Netlinkz is positioning itself for further growth as mobile data collection becomes more widespread.
The company will provide markets with a more detailed breakdown of its September quarter numbers with the release of its 4C filing at the end of October.
This article was developed in collaboration with Netlinkz, 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.