Global Invacom Group (QS9) H1 2023 earnings summary

Executive summary

• 1H FY2023 revenue fell 16.3% YoY to US$31.338m; gross profit rose 12.7% to US$8.307m and net loss narrowed to US$2.136m from US$3.292m.

• Delayed satellite launches, postponed customer orders and semiconductor supply constraints weighed on trading; improved product mix and operational efficiencies supported higher margins and a smaller loss.

Financial highlights

• Revenue was US$31.338m versus US$37.420m; gross profit was US$8.307m versus US$7.369m.

• Loss before tax narrowed to US$2.107m from US$3.253m; net loss was US$2.136m versus US$3.292m.

• Other income was US$432k, primarily from selling the 49% Fibre TV to Home Limited investment; total consideration including loan repayment was US$372k.

• Administrative and R&D expenses combined rose 2.9% YoY to US$10.4m, including higher professional fees and strategic-review costs.

Outlook and guidance

• The strategic review continues to assess corporate and operational structure, streamline core functions, reduce costs, and seek new markets and customers.

• The financial year is expected to remain challenging, although signs of renewed customer activity and accelerated satellite launch timetables have emerged.

• Titan and Obliquiti NGSO development continues to address multi-orbit satellite connectivity needs; no specific financial guidance was stated.