Netlinkz maintains revenue guidance and stays on track for a strong year in 2020; shares rip higher
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Special Report: The company reiterated its forecast for full-year revenues of $15.3m. Netlinkz shares closed the day 47 per cent higher at 6.8c.
For IT networks platform Netlinkz (ASX:NET), the COVID-19 pandemic has provided an opportunity to demonstrate the flexibility of its business model as it builds out sales channels across the Asia-Pacific region.
Despite the global disruption, Netlinkz booked quarterly revenues of more than $2m in the three months to March 31.
And in an announcement yesterday, the company said it remained on track to achieve full-year revenue guidance of $15.3m in 2020, after moving fast to deal with the effects of the pandemic.
Shares in Netlinkz ripped higher following the announcement, to close the day at 6.8c – a gain of 47 per cent.
The numbers are evidence that the enforced shift to work-from-home strategies for many businesses has given rise to “increased interest in the company’s products to provide secure remote work solutions”, Netlinkz said.
Netlinkz also completed the integration process for Security Software International (SSI) Pacific Pty Ltd.
And as the global economic outlook grows more uncertain, the company is reaping the benefits of its efficient capital management program.
Along with $3m in the bank, Netlinkz was able to provide its China operations with a $4.1m capital injection, which leaves the business fully funded for the next 18 months.
The amount includes $1.1m to fund iLinkAll, the Beijing-based joint venture in which Netlinkz owns an 80 per cent stake.
In February, iLinkAll was selected by the Beijing municipal government, to provide remote information-sharing services as part of a coordinated effort to contain the virus.
To ensure the safety of its staff, the bulk of Netlinkz’ workforce – from engineering to administration – are continuing to work remotely across its operations in Australia and China.
However, staff at the Beijing office are beginning to head back to work as social distancing restrictions are lifted in China, and Netlinkz expects all staff to be “fully on site by late April”.