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Audinate Reports Strong Growth

According to outgoing Audinate CEO Lee Ellison, “Both earnings and operating cash flows grew substantially more than revenue as Audinate’s operations began to scale with our Dante-enabled products further penetrating key market segments. These results reflect the success of the passionate team at Audinate that is executing on our growth strategy.”

Surry Hills, Australia (Aug. 27, 2019)—Revenue, earnings and cash flow all show strong growth in the recently announced year-end results for Audinate Group Ltd., which also reports that the total number of Dante-enabled products rose 30 percent to 2,134.

Revenue growth for the 12 months ended June 30, 2019 (FY19), was 34 percent (in US$ terms). In A$ terms, revenue was up 44 percent to A$28.3 million. This reflects a 29 percent increase in shipments of Dante chips, cards, modules and software, according to the report. Gross margin at 74 percent was flat compared to FY18.

Total operating expenses increased 30 percent to A$18.3 million, primarily driven by further investment in people, with 19 new roles mostly related to sales and engineering, a second year of long-term incentive expenses and costs associated with the company’s new Sydney office, to support ongoing growth.

The strong growth in revenue underpinned a 249 percent increase in EBITDA to A$2.8 million (FY18: A$0.6 million) as the growth in gross profit flowed through to earnings.

The strong balance sheet stems from a successful year of capital raising, including an oversubscribed A$20 million placement on June 6, 2019. The company raised an additional A$4 million shortly after year-end.

The number of Dante enabled products available for sale was up 30 percent to 2,134 products at year-end, from 1,639 at the same date last year. The number of OEMs shipping Dante-enabled products was up 22 percent to 270.

Audinate entered the video market with the release of its Dante AV Module and the introduction of Dante AV Product Design Suite in June 2019. The Dante AV Product Design Suite is expected to be shipped to OEMs by the end of calendar year 2019.

Related: At InfoComm: Audinate Launches Dante-as-Software Products, June 13, 2019

Audinate also released two new software products at InfoComm in June 2019. Dante Application Library (DAL) allows software developers to seamlessly integrate Dante functionality directly into their PC and Mac applications. DAL has been adopted by Zoom Video Communications for its Zoom Room application for video meetings.

Dante Embedded Platform (DEP) enables manufacturers to implement Dante in software running on Linux for Intel and ARM processors. QSC is the first DEP customer to deploy the product within the Q-SYS line of digital signal processors and is expected to be rolled out by the end of calendar year 2019.

Related: Audinate Announces Internal Successor for CEO, May 30, 2019

Commenting on the retirement of CEO Lee Ellison on Sept. 13, 2019, which was announced May 30, chairman David Krall said, “Yet another set of great results for Audinate is testament to the fantastic job that Lee has done over many years and the exceptional leadership team that he has developed. We have a natural successor in co-founder Aidan Williams, and we are excited about the next chapter under his leadership and vision.”

Audinate •