Spectur Limited (ASX: SP3) Reports Record Revenues On Strong Surveillance Product Demand
A record-setting quarter affirms Spectur Limited (ASX: SP3) growth metrics as it continues to send shockwaves on the development of high definition security camera powered by the Internet of Things. Earnings for the three months ended June 2019 affirm a company on its way to become a key a player in the video surveillance market. Ongoing sales and recurring revenue growth signal the company’s growing market share in a market poised to reach $62.62 billion by 2023.
Record Quarterly Earnings
Specturs transition from an industrial startup to a leading tech company is gaining traction as depicted by solid fourth quarter results. A 23% year-over-year growth in revenue to $1.45 million marks an important milestone. The growth led the company to full-year revenue of more than $4.8 million, above market expectations.
Robust revenue growth saw Spectur post two consecutive months of positive cash flow. The company had $2.16 million as cash at a bank as of July 8, 2019. The current cash balance supplemented by a new capital raise should allow Spectur to implement its growth strategy going forward.
Revenue growth received a boost on customers buying surveillance solutions rather than renting them. Unit sales topped record highs of more than 1,000 as rentals came in the excess of 200 units. Conversely, outright sales triggered a spike in paid subscriptions as well as serve access.
Recurring revenues as a result of growth in subscriptions topped $592,000. Going forward, upfront sales of new unit sales are likely to dominate the overall revenues. Management is also projecting higher gross margin and more recurring revenues as focus shifts to servicing government and utility customers. Plans are also underway to service customers outside Australia especially in New Zealand.
“Spectur continues to build revenue and its brand. With the strengthening of our management team, continued progress towards becoming cash flow positive from operations and a compelling, practical strategy, Spectur is well placed to grow and deliver on our promise,” says Spectur Chairman Darren Cooper.
Growing Video Surveillance Empire
The future can only be bright for Spectur in the multi-billion video surveillance industry. Management is already looking into the future as part of an effort of expanding the company’s footprint and push for market share. Geographic expansion in Australia is already in play in addition to the creation of new outbound sales channels.
The company is also increasingly looking to expand its current customer mix in a bid to diversify revenue streams. Product line expansion while leveraging Internet of Things is top on the agenda as management continues to bolster Spectur competitive edge.
In a bid to shrug off competition in the video surveillance business, Spectur has resorted to making video monitoring and surveillance a lot smarter. With the help of the internet of things, the company is already offering security and surveillance systems connected to cloud-based technology solutions.
Spectur should continue to enjoy an excellent run on revenue generation and market traction on being the only supplier of solar-powered deterrence and surveillance solutions in Australia. The company’s product mix is currently made up of thermal security cameras as well as HD5 solar security camera systems and time-lapse camera systems.
PLEASE BE ADVISED THAT YOUR CONTINUED USE OF THIS SITE OR THE INFORMATION PROVIDED HEREIN SHALL INDICATE YOUR CONSENT AND AGREEMENT TO THESE TERMS.
This website www.sectorreports.com.au is a service of Profectus Solutions Pty. Ltd. an investor relations group and media firm. The website or article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Profectus is not responsible for material posted on this website and does not guarantee the content, accuracy, or use of the content in this site. No advice or information, whether oral or written, obtained by you from Profectus Solutions or through or from the service shall create any warranty not expressly stated.
Profectus Solutions do not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Profectus does not in any way endorse or recommend individuals, products or services that may be discussed on this site. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional licensed financial planner and adviser. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
Conflict of interest
Directors, staff or third parties of Profectus may at times own shares of companies that are profiled within our network. We as part of our business model actively seek to do business with listed ASX or other companies.
We currently own shares of the profiled company SP3 that were purchased at IPO, in a placement and on market. We have NOT been compensated in anyway for the production of this Corporate Awareness Campaign.