Australian wireless telecommunications hardware manufacturer, NetComm Wireless (ASX:NTC), has officiated Ken Sheridan to be the company’s new chief executive, following his interim duties as acting CEO. The appointment followed David Stewart's retirement in November last year.
NetComm Wireless chairman, Justin Milne, said the company undertook a “thorough process” to make the decision, with the assistance of a third party search firm.
He added that this external work, coupled with Sheridan’s "deep knowledge of the business and strong relationships with investors and customers", made him the clear choice.
“Ken Sheridan has done a wonderful job for us in the role of acting CEO,” NetComm Wireless chairman, Justin Milne, said.
“In the last few months he has helped sharpen the company’s focus towards our major opportunities and has made a very significant difference to the culture of the company. The board is very confident that we now have the right man for the job ahead.”
Sheridan’s appointment comes as Netcomm reports a loss of $1.7 million for the first half of the financial year (1H17) which it says is due to investments made in infrastructure and workforce.
According to Netcomm, the company increased its engineer count from 91 to 125, sales and marketing staff from 29 to 34 and other staff from 23 to 31.
The company said, in a statement, that the reinvestment in staff and infrastructure is in line with its wider growth strategy to enhance its capabilities as it pursues multiple global opportunities.
However, the company reported a record revenue of $47 million for the period - a slight 1.2 per cent increase on the same period last year.
The majority of revenues came from the company’s new, growth businesses (M2M, Fixed Wireless), up 16.4 per cent to $36.3 million.
As a result, these growth businesses attributed to three quarters (77 per cent) of Netcomm’s total revenue - up 10 per cent compared to the prior corresponding period.
The company reported earnings before interest, tax, depreciation and amortization (EBITDA) to be $700,00 for the 1H17.
Netcomm said it expects further revenue composition as the company’s Ericsson and nbn Fixed Wireless contract evolves.
In November last year, the company was set to bolster its bottom line by inking a master equipment and services supply agreement with nbn, the company building Australia’s National Broadband Network (NBN).
The deal saw NetComm Wireless supply nbn with 1-port and 4-port Distribution Point Units (DPUs) that have been designed for the nbn’s Fibre-to-the-Curb (FttC) projects, and related services, with work likely to commence during 2018.
“NetComm Wireless is a great Australian story. We have excellent people, unique expertise and great technologies which we are now selling to major companies in the US, Europe and Australia. We look forward to Ken Sheridan leading the company to the very bright future we see ahead,” Milne added.