Netlinkz nearly triples cash receipts from customers in FY21

Netlinkz Ltd (ASX:NET) rounded off the 2021 financial year with around $15 million in customer receipts — nearly triple the cumulative result tabled at the same time last year. Over FY21, the technology stock’s unaudited revenue increased roughly 174% on the previous financial year, with around $2.7 million brought in over the June quarter. Activities-wise, Netlinkz executed a $15 million entitlement offer during FY21’s final quarter, with the funding poised to accelerate the company’s growth. Moving into the new financial year, Netlinkz has $10.8 million in the bank to support its upcoming operations. Financial performance Speaking to its quarterly revenue, Netlikz said its business performed as expected and in line with the previous quarter’s result. Cash receipts for the June quarter came in at $1.7 million, bringing the full-year result up to $14.8 million. Ultimately, this figure is 2.7 times greater than the approximate $6 million result tabled in the previous corresponding period. The scope of some large projects in Asia also increased, leading this division to grow 10% on the quarter-on-quarter metrics. Owing to the seasonality of sales cycles, Netlinkz expects to experiences a stronger first-half in terms of financial performance over the next two years. In addition, the technology stock lowered its operating expenses in FY21’s final quarter, with costs coming in at $3.5 million compared to the $4.4 million averaged quarterly spend experienced over the rest of the financial year. Over the June quarter, Netlinkz repaid $2.1 million in debt, including $0.9m of convertible notes redeemed and a further $1.2m of short-term loans. Current activities As COVID-19 continues to impact businesses the world over, Netlinkz has identified opportunities to grow its secure technology offering globally. Looking ahead, the technology stock has a number of proof of concepts (POCs) in the pipeline, potentially leading to revenue generation over the course of the next six to nine months. In India, Netlinkz is developing varied secure network and internet of things (IoT) solutions, including: Secure work-from-home enablement; Solar farm monitoring and analytics; and A real-time water quality monitoring project (similar to the Chengdu water project in China) for the Karnataka Government. In the meantime, the company continues to execute new partnership opportunities globally. Netlinkz recently executed a joint venture agreement with Al Rabban International, Qatar, which will establish an IoT lab in Doha and grow the business across the Middle East. Meanwhile, on home soil, The Australia-headquartered tech company established an alliance with SouthCloud, a telecommunications provider servicing rural customers across the country. The relationship will see Netlinkz underpin the SouthCloud backbone in network security and deploy secure networking services for SouthCloud’s customers. Ultimately, this will help Netlinkz establish a large-scale telecommunications use-case for its virtual secure network (VSN) software. Finally, Netlinkz’ memorandum of understanding (MOU) with Uni Systems has been expanded to accelerate involvement in European research and development initiatives and go to market with large potential enterprise clients in Europe. The parties will explore the potential for a joint venture during the course of this MOU. Applications for Netlinkz' VSN solution. Senior appointments To progress its development strategy, Netlinkz made three senior appointments over the winter months. In June, chief marketing and revenue officer Sam Akbari joined the Netlinkz team, bringing with him more than 12 years of professional experience across enterprise business-to-business telecommunications sales. Akbari has held senior management positions in marketing and was previously responsible for the successful global rollout of the go-to-market strategy of an enterprise software-as-a-service platform. At Netlinkz, he is responsible for all sales and marketing activities, including evolving the global go-to-market strategy across direct, partner and carrier channels. This month, Agathi Galani onboarded as the business leader for Netlinkz’ alliance with Uni Systems. Galani leverages experience in opening new markets, generating leads and optimising revenue streams through the delivery of robust IT solutions. She’s worked alongside organisations like SUN Microsystems and Dell EMC, and the technology stock believes her acumen aligns with what it plans to achieve in Europe. In the coming weeks, Rotem Salomonovitch will also commence as Netlinkz’ chief technology officer (CTO). An industry veteran with two decades of experience in the networking industry, Salomonovitch brings over 10 years of professional experience as a product leader in software-defined networking and IoT, particularly in the highly competitive US and Australian markets. The incoming CTO has deployed and scaled up networking solutions with a range of US-based and global organisations, operating at the forefront of networking and digital infrastructure solutions since 2007. At Netlinkz, he will be responsible for worldwide product development and positioning.