Audinate improves Q2 performance, shares jump
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The news: Audiovisual tech company Audinate posted an improved profit in the second quarter and signalled moderate strengthening in the second half of the fiscal year, sending its shares higher.
The numbers: The company swung to a net loss of $2.2 million for the six months to December, down from a $4.7 million profit a year ago, while revenue was down 38% to $28.72 million.
While overall gross profit for the half-year was down 29% from a year ago, it improved to $12.9 million in the December quarter, up from $10.8 million in the first quarter.
Audinate shares are up 16% to $8.80 in early ASX trading.
The context: Audinate, the developer of the Audio over Ethernet (AoE) system Dante, said its first-half performance reflected the impact of excess inventory in the OEM channel, which has prevented customers from placing new orders. The company expects moderate strengthening in the second half but said these trading conditions are likely to persist throughout FY25, with a return to typical order patterns expected in FY26.
Meanwhile, gross margin in the first half improved to 82.2% from 71.5% a year ago, driven by a favourable shift towards software-based solutions. The company said its long-term outlook remains strong, underpinned by a growing installed base of over six million Dante devices in the field.
The source: ASX
