- Data centre company DXN (DXN) achieved positive quarterly cash flow for the first time during the December 2020 quarter
- The company’s cash receipts, totalling $1.97 million, were 89 per cent higher than they were during the previous quarter
- DXN further strengthened its cash position with $1.8 million in new contracts and by restructuring its ANZ debt facility
- The company ended the quarter on December 31, 2020, with $2.3 million in total available funds
- DXN closed in the grey, to trade at 1.7 cents per share
Data centre company DXN (DXN) achieved positive quarterly cash flow for the first time during the December 2020 quarter.
During the three-month period which ended on December 31, 2020, the company’s operating activities produced $55,000 in net cash. This was the result of reduced overhead costs and increased cash receipts from DXN’s customers.
The company’s overall cash receipts for the quarter came in at $1.97 million, which was 89 per cent higher than in the previous quarter. This included a payment of $610,000 from Southern Cross.
DXN was able to further strengthen its cash position by securing $1.8 million in new sales during the quarter. This included a contract worth roughly $700,000 with Streamline Connect, for the supply of modules to a large mining client in Western Australia’s Pilbara region.
It also consisted of a contract worth approximately $1.1 million with APX Partners for a cable landing station.
In addition to securing new contracts, DXN also boosted its balance sheet by renegotiating its debt facility with ANZ (ANZ). Through these negotiations, the company was able to significantly simplify the facility’s loan structure and remove certain covenants.
As a result of the facility restructuring, DXN reduced its repayment posts by $85,000 per month.
While COVID-19 complicated DXN’s delivery of projects during 2020, the company was still able to overcome various challenges posed by the pandemic. To offset potential delays caused by border closures, DXN entered into several sub-contract arrangements to assist with commissioning and installation activities in Australia and abroad.
As a result, the company was able to complete installation of its first cable landing station in Fiji, for Southern Cross Cable Network.
The company ended the quarter on December 31, 2020 with $2.3 million in total available funding.
DXN closed in the grey, to trade at 1.7 cents per share at 4:10 pm AEDT.