- Scout Security (SCT) has recorded a cashflow-positive December 2019 quarter
- The security company generated half a million in net cash from operations, based on $1.4 million of cash receipts
- Its white label program generated $800,000 during the quarter as well as $532,000 from hardware sales
- In operations, Scout released three new home security products which have proven popular so far
- Scout has risen 37.9 per cent today on the ASX today, with shares trading for 9.1 cents each
Scout Security (SCT) has reported achieving a cashflow positive December quarter for the period ending December 31 2019.
The security systems company generated $0.5 million in net cash profits from operations based on $1.4 million of cash receipts.
During the quarter, Scout released three new smart home security products including the Scout Panic Button, Remote Control and Siren.
In an emergency, the Scout Panic Button allows users to trigger their existing Scout security system just by pushing a button within a 300ft range. So far, a Maine-based police department has become an ongoing customer and it has been reported that domestic violence victims have seen positive change.
The Scout Remote Control is a compact way for customers to easily control their Scout security system.
The Scout Siren deters intruders and can be installed in any power outlet. It also acts as a Zigbee repeater (a tool that passes messages across connected home devices), strengthening the signal between a user’s existing Scout Hub and sensors.
Scout began marketing these products during the December 2019 quarter and achieved first sales through its recently upgraded website.
In its white label development program, the company completed several contractual milestones and generated roughly $800,000 in cash for the period.
Additionally, Scout received $532,000 in the quarter for hardware sales.
“Scout’s direct business continues to generate cash and industry recognition of our technology, [which] we are now leveraging through significant emphasis on white label programs that bring scale to our operations,” CEO and Co-founder Dan Roberts said.
The company’s cashflow positive December quarter shows the potential of Scout’s white label opportunity.
Scout will continue to invest in its white label business this year to secure a strategic position within the smart security and smart home industries.
“We are beginning to see the potential of our business when it fires on all cylinders, taking multiple white label partners through the phases of development, launch and scale,” Dan added.
In addition, it expects multiple partner launches in 2020 which will see Scout gaining access to their iconic branding, global distribution networks and unique product development capabilities.
Scout has risen 37.9 per cent today on the ASX today, with shares trading for 9.1 cents each at 12:17 pm AEDT.