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- Amid a wave of quarterly updates, NetLinkz (NET) has reaffirmed its full-year revenue guidance
- Despite COVID-19 interruptions, the cloud networker estimates it will bring in $15.3 million in revenue by the end of 2020
- NetLinkz generated over $2 million in sales over the last quarter
- However, to protect its Australian staff, NetLinkz has ordered all engineers, technicians and admin to work from home
- Additionally, NetLinkz believes its $3 million-strong cash holding will help it buffer the coronavirus storm
- But to maintain financial security, the company is cutting costs across the board — slashing executive salaries in two
- Despite this, the acquisition of Security Software International brought in $760,000 in revenue over January and February
- NetLinkz shares have seen a 47.8 per cent uptake today. Company stock is trading for 6.8 cents per share
Amid a wave of quarterly updates, NetLinkz (NET) has reaffirmed its full-year revenue guidance.
Despite COVID-19 interruptions, the cloud networker estimates it will bring in $15.3 million in revenue by the end of 2020.
NetLinkz generated over $2 million in sales over the last quarter, positioning it well to meet the reaffirmed annual sales guidance.
Additionally, there’s a silver lining in the remote working conditions for NetLinkz. An uptake in demand for cloud connectivity has translated into increased orders for the company’s technology.
Working from home
To protect its Australian staff, NetLinkz has ordered all engineers, technicians and admin to work from home.
In China, however, the staff at the Beijing lab are beginning to move back on site.
As China continues to ease lockdown restrictions, NetLinkz believes all Beijing employees will be back on board by the end of April.
Cost-cutting
NetLinkz believes its $3 million-strong cash holding will help it buffer the coronavirus storm.
However, to maintain financial security, the company is cutting costs across the board.
As a result, the executive and management teams will halve their salaries over the next six months.
Additionally, costs at NetLinkz’s Australian corporate offices are being scrutinised.
Despite this, NetLinkz remains well funded over the coming months.
Chinese operations
For the next 18 months, the company’s Chinese operations have already been paid for.
On top of that, product development at NetLinkz’s Beijing lab is ahead of schedule.
Because it’s been tracking ahead since last December, Netlinkz expects to see a 30 per cent reduction in development costs from the start of May.
Security Software International acquisition
In more good news, NetLinkz says its acquisition on Security Software International (SSI) is now complete.
Roughly $760,000 was generated from the deal over January and February.
As a result, some of the SSI team is coming onto the NetLinkz board.
Outgoing SSI CEO, Samuel Py, will lead the NetLinkz Australian and New Zealand (ANZ) division. Meanwhile, SSI’s Chief Technical Officer, Stephan Molle, will continue in his role at the NetLinkz ANZ branch.
Despite the changes, James Tsiolis will remain as the NetLinkz Group’s CEO and Executive Chairman.
NetLinkz shares have seen a 47.8 per cent uptake today. Company stock is trading for 6.8 cents per share at market close.
