Tech: Ava Risk Group bounces 22% on updated revenue forecast

Shares in tech security platform Ava Risk Group Limited (ASX:AVA) were up strongly this morning, after the market responded positively to its Q1 trading update.

The company reported revenue in the three months to September of $9.9m, with underlying earnings of $1.2m — an annual gain of more than 300 per cent.

Investors sent the stock up more than 15 per cent in early trade, which helped to partially reverse a broader 2019 downtrend:

AVA’s product range is led by its Future Fibre Technology (FFT) — an integrated security system that integrates with CCTV cameras, infra-red devices, motion detectors, and anti-penetration and thermal sensors.

The company said its technology division contributed $5.5m towards total quarterly revenues, with a gross margin of 72 per cent. It also flagged further growth in the year ahead, flagging further work of $4.3m in the pipeline as at September 30.

The company emphasised that its quarterly results related to core operations only, and don’t include revenue generated from its $5m contract with the Indian military that AVA signed back in May.

As part of that deal, AVA’s tech will be deployed by India’s defence force as part of an upgrade program for perimeter security an air bases across the country.

AVA said initial purchase orders have been made in connection with the project, and it expects to generate revenue from the India project by the end of this year.

ALSO READ: AVA just won a contract to protect US nuclear power plants

In other ASX tech news today:

Internet of Things (IoT) and cloud-based platform Buddy Technologies Ltd (ASX:BUD) announced it has finalised a $20m trade finance facility, and has made two initial drawdowns of $US1.1m and $AU900,000. It’s also repaid all obligations in connection with a previous facility. Regarding the company’s share entitlement offer announced in September, BUD said around $3m of the $5m target had been taken up by eligible shareholders, with the offer set to close this Friday.

And mobile games company iCandy Interactive Limited (ASX:ICI) announced that it has made its initial submission to Canadian regulators, as it pursues a dual listing on the ASX and Toronto’s TSX Venture Exchange. Shares in the company were up 4.76 per cent at 4.4 cents.