Etherstack Plc (ESK.AX) Trading Update - Revenue Guidance
Etherstack Plc (ASX:ESK) is pleased to provide a trading update and revenue guidance for the financial year ending 31 December 2023. All amounts are in USD.
Trading update
The unaudited 30 June 2023 half year results are:
- Revenue: revenue was $2.9 million down 40% on the prior corresponding period (half ending 30 June 2022 or "pcp"). The decrease is primarily due to project delays outside of Etherstacks' control but also reflects the inherent nature of Etherstack's revenues which may be volatile when driven by a small number of large projects and associated milestones which often balance out in the subsequent half. Revenue guidance for the full year ending 31 December 2023 is set out below
- EBITDA: EBITDA is ($0.54) million down from $2.2 million in the pcp
- Statutory net profit/(loss) after tax: Statutory net loss after tax is ($1.5) million a decrease from $1.6 million profit for the pcp
Full details will be set out in the half year financial report to be finalised shortly.
Full Year 2023 Revenue Guidance
Etherstack expects revenue for the year ending 31 December 2023 to be in the range of USD 9.1 million to USD 10.1 million.
This compares to the 31 December 2022 revenue result of $9.7 million
Achieving the 2023 guidance revenue outcome assumes:
- No significant variation in foreign currency rates vs the reporting currency (USD)
- Project deliverables which determine the timing of revenue recognition are delivered as planned/scheduled. There can be project delays, beyond the control of Etherstack, which lead to revenue being recognised in different periods to original plans and schedules. As noted in the past, the revenues from Etherstack projects can be driven from a small number of individually large projects and a change in the timing of the recognition of the revenue can have a material impact on the results for a particular period.
David Carter Chief Financial Officer T: +61 2 8399 7500 www.etherstack.com Investor Relations Melanie Singh T: +61 439 748 819 melanie@nwrcommunications.com.au
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