- Virtual reality and software specialist Vection Technologies (VR1) has revealed a solid quarter of cash receipts despite the COVID-19 pandemic bringing about a challenging trading environment
- Cash receipts for the June 2020 quarter came in at $577,000 — higher than the same time last year, but lower than the March 2020 quarter
- Still, for the full 2020 financial year, Vection said its $2.8 million in cash receipts is a 79 per cent increase on 2019 financial year receipts
- The company had around $1.6 million in the bank at the end of June
- Looking ahead, Vection says its plans over the next six months revolve largely around bringing its software further across the health care, education, and automotive sectors
- Nevertheless, on a tough day for the tech sector, Vection shares closed 2.44 per cent lower and worth four cents each
Virtual reality and software specialist Vection Technologies (VR1) has revealed a solid quarter of cash receipts despite the COVID-19 pandemic bringing about a challenging trading environment.
Cash receipts for the June quarter came in at $577,000 all up, which is a healthy increase on the $484,000 from the same quarter last year. However, this quarter’s figures are lower than the March 2020 quarter, over which Vection pulled in $658,000 in customer receipts.
Still, Vection said for the full 2020 financial year, the company’s total cash receipts were $2.8 million, representing an increase of 79 per cent over the 2019 financial year’s $1.6 million customer receipts.
Moreover, Vection burned around $280,000 over the June quarter and ended the quarter with roughly $1.6 million cash in the bank — meaning at this level of cash burn, the company still has roughly one and a half years’ worth of cash left before it needs a top-up.
Vection Managing Director Gianmarco Biagi attributed the company’s “strong commercial strategy” to its growth during the COVID-19 environment.
“We have remained committed to the shifting requirements of our customers IoT supporting them during this uncertain time while working remotely, and have achieved our growth goals for FY20,” Gianmarco said.
“COVID-19 has marked a paradigm shift for businesses globally, setting the grounds for strong acceleration of digitalisation aligned with Industry 4.0, positioning the company in the front seat for future growth and the achievement of our future goals,” he said.
Looking ahead, Vection’s plans over the next six months revolve largely around bringing its software-as-a-service (SaaS) solutions further across the health care, education, and automotive sectors, with a longer-term goal of 50 per cent annual recurring revenue (ARR) by June 2022 in mind.
The company also plans to integrate its recently-purchased Mindesk suite with computer-aided design (CAD) and building information modelling (BIM) software.
Nevertheless, on a tough day for the tech sector, Vection shares declined by 2.44 per cent to close worth four cents each. The company has a $33.21 million market cap.