Preliminary Final Report
Sydney, Feb 17, 2023 AEST (ABN Newswire) - Etherstack plc (ASX:ESK) is pleased to present the Appendix 4E (Preliminary final report) for the year ended 31 December 2022.
David Deacon, Etherstack CEO noted, "2022 was a very strong year for the business. Revenue grew 14% following an 81% increase in 2021. A significant increase in profitability was achieved in FY 22 with 14% revenue growth driving EBITDA growth of 33% and Statutory profit after tax growth of 51%.
We have progressed on all the core building blocks of our business. Etherstack continued building its recurring revenue base, its intellectual property portfolio and an opportunity pipeline containing top-tier global communications companies.
Progress on these building blocks in 2022 has produced results that the Company, the Board and myself are very proud of.
- Etherstack delivered on key milestones in the first Samsung project for Samsung's customer, AT&T (on behalf of FirstNet(R) emergency services network),
- Signed a revised Global Teaming Agreement with Samsung in October 2022 which extends the contractual relationship for a further 5 years and contains a mechanism for further extensions. Within this framework, the company has pursued additional carrier opportunities with Samsung which, when concluded, are expected to generate significant revenues for Etherstack.
- An initial Nokia MCX IWF (Mission Critical Push-To-Talk InterWorking Function) contract was signed for a pilot project in Australia proving the global demand for the product. The Company believes there is a substantial addressable market for this product with known procurements under way in many OECD countries, but also notes the market is evolving and adoption timing can be unpredictable. That said, we are very pleased to have won the first major deliveries of this type in the world with Samsung and Nokia.
- Government business including technology and services contracts with the UK Ministry of Defence, the Australian Department of Defence and Australian Department of Home Affairs. In particular, an AUD $1.7m Australian Defence follow-on order received in September 2022.
- In 2020, the Company entered an initial deal with an integration partner to deliver a digital radio network to a Rio Tinto project in Western Australia. Two follow-on orders were received in FY 21 and a further two in FY 22 for Rio Tinto projects. There is significant opportunity for Etherstack in this sector and with this end user.
- The Group made two major product releases in 2022:
- Carrier grade MCX IWF. This seamlessly bridges traditional public safety land mobile radio (LMR) networks with next generation MCPTX (Mission Critical Push To Talk) services. -
- NATO NBWF (Narrowband Waveform) standard waveform software implementation, framework and simulation tools for use by NATO member nations and their defence radio manufacturers.
Importantly and specifically in the context of Etherstack's MCPTX business, the revised Global Teaming Agreement with Samsung allows Etherstack to pursue opportunities with other network vendors or directly with telco carriers.
As a consequence, the addressable market for our MCPTX LMR IWF product has increased significantly. This is demonstrated by the pilot contract with Nokia, as noted above. In addition, the company is pursuing opportunities separately with both Samsung and Nokia and is also pursuing opportunities to provide MCX IWF technology directly to carriers for integration with their preferred MCX partners.
We are very pleased to see that revenue growth is driving increased profitability. We are committed to driving further revenue and profit growth for our shareholders and are well placed to deliver on these objectives."
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About Etherstack Plc
Etherstack (ASX:ESK) is the world's leading licensor of wireless technologies for the digital LMR industry and the Company develops wireless products for the main digital radio communications standards known as APCO P25, TETRA and DMR. Over the past 25 years, over twenty wireless equipment manufacturers have licensed LMR technologies from Etherstack for use in their products.
MCPTT over LTE is an emerging cellular standard that provides public safety grade PTT (Push-To-Talk) solutions within 4G and 5G cellular networks. Demand for MCPTT services and equipment by telecommunications carriers and end user agencies has been steadily growing in the past few years and is expected to rise rapidly over the next 36-48 months.