NetComm Wireless (ASX:NTC) has experienced record half-year revenues and earnings for the six months ending 2017, thanks largely to key projects such as its contract with the company behind the National Broadband Network (NBN) rollout, NBN Co.
During the first half of the 2018 financial year, the group's revenue increased by 89 per cent, to $88.6 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) was up to $9.2 million, representing a 1252 per cent year-on-year increase for the period.
Net profit after tax (NPAT), meanwhile, saw a turnaround, rising 295 per cent to $3.7 million in the black, after experiencing a $1.9 million loss in FY17.
NetComm previously landed a hardware deal with NBN Co to supply network connection devices (NCDs) for its Fibre-to-the-Curb (FttC) project, which is set to deliver $66 million in revenue for NetComm within an 18-month period following the launch, planned for the second half of 2018.
NetComm also delivered an initial order of fixed wireless units to AT&T in the United States for its rural broadband project; and strengthened its sales presence in markets such as Europe, UK and North America.
“It has been a very strong period for NetComm as we continue to deliver our strategic plan. I am particularly pleased to see NetComm achieve outstanding growth following critical investments made over the past two years,” NetComm chairman, Justin Milne, said. “Our balance sheet remains strong with cash reserves of $13.1 million and available unused debt facilities of $20 million.”
NetComm’s M2M business, which now represents 85 per cent of group revenue, was up 107 per cent to $75.1 million, and its broadband business made a turnaround from a loss of $1.9 million during the same period last year, to $3.7 million in the black.
“Over the period we received material revenues across several of our key contracts, as our high growth M2M business expanded. We continued to rollout the Ericsson/NBN fixed wireless contract and anticipate launching a new 100Mbps service this calendar year, our third technology upgrade in only four years,” NetComm CEO and managing director, Ken Sheridan, said.
“Having delivered operational success across our key growth business and with a strong balance sheet and cash at bank, we are in an excellent position to continue to grow. The benefits from the investments made to enhance our engineering capabilities are flowing through as we become a telecommunications technology solutions provider in global markets.”
In November 2016, NetComm Wireless announced the supply of 1-port and 4-port distribution point units (DPUs) designed specifically for the NBN Co’s fibre-to-the-curb (FttC) projects and related services.
The DPUs are to be installed outside premises to connect fibre to a household’s existing copper lines.
In February 2017, the company said that the first order of the DPU would result in $28 million in revenues, which was expected to be generated between June and August 2017.