Tech: It’s a mixed bag this morning as more companies respond to the crisis
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With the global COVID-19 contagion yet to reach its peak, it’s now accepted that coronavirus will have a materially lasting impact on the global economy.
And as the outlook changes, more ASX small-caps are updating investors on how their business is changing with the times.
There were a number of announcements this morning in the tech sector, which in turn prompted a range of responses from the market.
Leading the way was software communications company MNF Group (ASX:MNF), which is providing services as customers scramble to set up remote working operations.
MNF said it was seeing “strong demand” across each of its three core operating segments, led by a sharp pickup in requests for Australia-based phone numbers.
The company said its own continuity plan will allow all employees to work from home, and reaffirmed full-year core earnings guidance of $36m to $39m. Shares in MNF bounced off recent lows to climb more than 20 per cent in morning trade.
3D additive manufacturing company Titomic (ASX:TTT) also had a good morning, after announcing it had so far experienced “little to no disruption” to its operations from the crisis.
The company said it also had sent contingency plans to all staff in the event of a virus-related disruption, and touted its strong cash position following a $19m cap raise in February.
Titomic also announced it had joined forces with a sales and distribution partner, BTech Innovation, in Turkey. BTech is the “Turkish representative of the biggest 3D printing companies in the world”, Titomic said, and will help provide access to Turkey’s defence and manufacturing industries.
On the other side of the ledger, Hills Limited (ASX:HIL) slumped after announcing it now expects the COVID-19 crisis to “affect customer demand for some Hills products and services”.
In particular, the company said its Hills Health Solutions service may face disruption as customers reprioritise their spending budgets. As a result, the company said it was now withdrawing earnings guidance and would provide an update on trading conditions “when appropriate”.