NetComm Limited (ASX: NTC) reported today an EBITDA of AUD3.67 million for the half year ended 31 December 2008, an increase of more than AUD3.18 million over the corresponding period in 2007.Sales revenue was AUD40.26 Million compared to AUD9.6 million from the same period in 2007.
NetComm Limited (ASX: NTC) reported today an EBITDA of AUD3.67 million for the half year ended 31 December 2008, an increase of more than AUD3.18 million over the corresponding period in 2007. Sales revenue was AUD40.26 Million compared to AUD9.6 million from the same period in 2007. Sales revenue and EBITDA were in-line with the guidance released Q4 2008.
NetComm reported a significant increase in its free cash flow resulting in a cash balance of AUD5.09 Million at the end of the period. Based on its strong cash flow and as previously announced, NetComm intends to reinstate its dividend policy.
"These are extremely pleasing results for NetComm and its shareholders. NetComm has successfully repositioned itself as the Australian leader in the design and supply of broadband connectivity devices and services. We are now seeing the rewards from this new business direction, said Mr David Stewart, NetComm Managing Director.
With no long term debt commitments and a strong cash position we are encouraged by the opportunities which are now available to us to continue to grow the business, said Stewart.
NetComm launched nine products over the reporting period predominantly in the high growth 3G mobile and fixed wireless market. Our reputation in 3G connectivity devices is rapidly growing as we gain recognition as a leader in the development and supply of high speed, high quality 3G routers, said Stewart.
NetComm is focused on growing through its export business, managed connectivity services and core broadband devices.
We are encouraged by the level of interest in our 3G devices and there are over 35 trials underway with international telecommunications carriers, said Stewart.
To support this activity NetComm has signed agreements with eight international systems integrators to distribute its range of high speed 3G broadband devices. These new distribution agreements are central to growing our export business, including developing countries where the fixed networks are often limited to major cities and do not offer adequate broadband capability, said Mr David Stewart.
In addition to the export business NetComm managed connectivity services business, NetAssure has a strong pipeline of prospective customers.
The recent acquisition of the profitable specialist 3G developer Call Direct will expand NetComms product development capabilities and lead to growth in its industrial and commercial line of business in the area of 3G communications.
We are in a promising and unique position despite these trying economic conditions. We have real revenue growth potential, underpinned by solid business fundamentals. NetComm will continue to focus on growing the business in a considered and strategic manner. We expect to maintain revenue and profit momentum for the full year, " concluded Stewart.