- IT and consumer electronics business Harris Technology (HT8) announced a 40 per cent year-on-year increase in sales revenue for the December 2021 quarter
- Unaudited revenue came to $13.4 million compared to $9.6 million in the prior corresponding period which was driven by sales events such as Black Friday
- Harris’s inventory capacity increased by 50 per cent after consolidating three warehouses into one and is looking at expanded its Household Products category
- The company spent $2.3 million in operating costs on the back of higher working capital needs during the peak trading season and ended the quarter with $2.1 million in cash
- Shares were down 14 per cent to trade at 8 cents
IT and consumer electronics business Harris Technology (HT8) has announced a 40 per cent year-on-year increase in sales revenue for the December 2021 quarter.
Unaudited revenue for the three-month period came to $13.4 million compared to $9.6 million in the prior corresponding period (December 2020 quarter). This takes revenue for the first half of FY22 to $28.5 million.
Interestingly, the $9.6 million figure followed closely behind the previous quarter’s result of $9.8 million which was reportedly Harris Tech’s highest-ever revenue at that time — showcasing the company’s progress over the past two years.
December 2021 quarter sales were largely driven by retail events such as Black Friday, Cyber Monday, Boxing Day and the overall Christmas period.
Throughout that period the company said it maintained a number one ranked seller rating on Amazon AU with 100 per cent positive feedback over the past 12 months.
Harris Technology makes and sells products such as mobile phone accessories, inks and toners, antivirus software and gaming products.
It increased its inventory capacity by 50 per cent in the December quarter by consolidating three warehouses into one larger warehouse in Victoria. Utilising the new warehouse, Harris conducted an online retail trial of household and Christmas products through its marketplace stores to expand its product categories with healthy margins. These included tools, toys, cleaning, gardening, and pet products.
Harris claims the results have been encouraging and it will continue to explore the expansion of the Household Products category over the course of this year.
“We have delivered $28.5 million in sales for the first half year compared to the same time last year of $19.4 million. The consolidation of three smaller warehouses into one large complex has positioned Harris Technology to build on the momentum built since pivoting to a pure-play online retailer,” CEO Garrison Huang said.
The company used the warehouse consolidation as a chance to liquidate ageing inventory. This led to some products being discounted to clearance prices and, as of December 31, inventory on hand decreased 8 per cent from the September quarter to $11.6 million.
Harris spent roughly $15.4 million on product manufacturing and operating costs, $1000 on advertising, and $563,000 on admin and corporate costs. It invested $99,000 on property, plant and equipment and generated $953,000 from financing activities.
It burnt through $2.3 million in operating costs which it claims was consistent with higher working capital requirements during the peak trading season.
Harris ended the quarter with $2.1 million in cash and 1.5 quarters left of estimated available funding. However, it said it won’t need to raise further cash as cashflow in the next periods is expected to be either positive or flat.
Its shares were down 14 per cent to 8 cents at 1:51 pm AEDT.