- Despite facing some supply chain challenges, Audinate Group (AD8) increased revenue in H1 FY22 to US$14.8 million (A$20.7 million)
- The 33.3 per cent increase was coupled with an increase in gross profit to US$11.2 million (A$15.7 million) — both of which were attributed to sales of its Dante product solutions
- Audinate increased its customer base by 12 per cent to 403 and its customers released another 211 Dante enabled products during the six-month period
- While chip shortages, product delays and COVID-related shutdowns expected to linger into H2 FY22, Audinate aims to navigate these while fulfilling its initiatives
- Company shares are down 4.14 per cent to trade at $7.41
Despite supply chain challenges, Audinate Group (AD8) managed to deliver a strong revenue result for the first half of the 2022 financial year.
The company reported US$14.8 million (A$20.7 million) in revenue for the six-month period which marked a 33.3 per cent growth on the prior corresponding period, being the first half of FY21.
Gross profit also increased by 30.2 per cent to US$11.2 million (A$15.7 million) at a gross margin of 75.6 per cent.
Audinate attributed the increased earnings to a growth in sales of chips, cards and modules such as the Dante AVIO adaptors, Dante Brooklyn module and the Dante Ultimo chip.
Headquartered in New South Wales, Audinate is focused on pioneering the audiovisual (AV) industry. It developed the network solution, ‘Dante’, which can be used in a variety of scenarios such as broadcasting and recording studios, theatres, universities, houses of worship, stadiums, and more.
Audinate developed the software suite to replace traditional analogue audio cables by transmitting ‘perfectly synchronised’ audio signals to multiple locations at once, just by using an ethernet cable.
During the half-year, Audinate secured 57 design wins with original equipment manufacturers (OEMs), which was up 23.9 per cent on the pcp.
The company increased OEM customers to 403 which marked a 12 per cent growth from the end of H1 FY21 and the OEM customers released another 211 Dante enabled products during the period.
In terms of expenditure, AD8 spent $13.3 million on operating activities in H1 FY22 which represented a 33 per cent increase to the pcp.
The key movement was a $2.8 million increase in employee costs due to a higher headcount. Operating costs also included those related to the acquisition of the Silex Insight video business.
The acquisition is expected to increase video hardware engineering capacity, accelerate Audinate’s video product strategy and give it access to engineering talent pools in the UK and Europe.
Despite challenges such as chip shortages, product delays and COVID-related shutdowns expected to linger into the second half of FY22, the company remains positive.
“Further supply chain tightness is expected in 2H22 but we are pleased to have received indicative additional commitments from chip suppliers. Consequently we now anticipate satisfying demand for our Brooklyn and Broadway products in the second half,” AD8 Co-founder and CEO Aidan Williams said.
The company said revenue for 2H22 would be driven by chip availability for itself and OEM customers.
Company shares were down 4.14 per cent to trade at $7.41 at 3:45 pm AEDT.