Tech play Connected IO received combined cash receipts and accrued revenues of $998,000 in the June 2018 quarter with another $650,000 in purchase orders on the books yet to be invoiced. The company expects these results to scale up in the second half of 2018 on the back of its strategic relationships with major US customers.
Connected IO has stepped on the financial accelerator with the Perth-listed ‘internet of things’ tech firm reporting solid cash receipts and accrued revenues for the June 2018 quarter.
In a market update this week, the company said it had generated cash receipts of $537,000 for the quarter, up from $522,000 from the previous quarter.
It also reported accrued revenues of $460,000 through shipped and invoiced product, most of which should be converted into cash receipts in the September quarter.
The company could see further growth in its cash receipts in the coming months with $650,000 in purchase orders – mostly from large customers making recurring orders – dropping in the June 2018 quarter.
It is expected that these purchase orders will be converted to cash receipts before the end of the calendar year.
Connected IO CEO Yakov Temov said: “The increase in combined cash receipts and accrued revenue is as a result of a significant sales drive as the company strives to achieve its first million-dollar cash receipt quarter.”
“These results are reflective of the growth of strategic relationships with major US customers, and are anticipated to strengthen and scale up in the second half of 2018.”
Current inventories have grown 50% to $1.2m in anticipation of invoicing and shipment.
Connected IO has amassed a high profile list of blue chip clients for its modem-like wireless devices that provide users with the ability to control or monitor a variety of different “things” remotely over the internet in a wide array of commercial operations.
Last month, the company cut its U.S. overheads dramatically by 40% and slashed manufacturing costs, which is expected to increase gross margins on some products by between 30% and 50%.
This performance mirrors the growth experienced by the broader internet of things market with ResearchAndMarkets.com estimating that total revenues for third party IoT platforms will grow at a compound annual growth rate of 31.7% from USD$1.78bn in 2017