NetComm Limited (ASX: NTC), an Australian leader in consumer and business broadband solutions, today announced half-year revenue guidance of $38 million to $42 million.
NetComm Limited (ASX: NTC), an Australian leader in consumer and business broadband solutions, today announced half-year revenue guidance of $38 million to $42 million. In line with continuous disclosure requirements this is a material change in the expected half-year revenues compared to H1 07/08 revenues of $9.6 million.
This lift in revenue guidance is based on sales and committed orders for the period. While we expect to maintain strong revenue growth, our staff numbers are forecast to increase by only 7% in the first half. We believe this growth will be sustainable, said David Stewart, NetComm Managing Director. There is strong demand for wireless broadband worldwide and NetComm is well placed to benefit from this growth.
Based on the guidance we have released today, subject to any material change in circumstances, the company intends to reinstate its dividend policy for the 2008/09 full year, said Mr Stewart.
NetComms strategy is to build on current growth in three key areas: wireless broadband; network management products and services; and the core business of broadband networking solutions. This is overlaid with an expansion into new international markets and increased penetration into new domestic commercial markets.
We can report that we have in place two distribution agreements with overseas distributors covering six countries. In partnership with our distributors, we are in discussions with a number of overseas telecommunication carriers to supply 3G wireless broadband devices and have received our first order from this activity, said Mr Stewart.
Further information is provided in the market update presentation released with this announcement.
Given current forecasts, NetComm also expects full year revenue to materially benefit; however, the company is not providing guidance or forecast for the full year result at this time.
We are very pleased that the strategy articulated at last years AGM is beginning to deliver such positive results as these augur well for our loyal NetComm shareholders. We have in place the vision, strategy, leadership team and the leading product and service portfolio to continue to deliver success from our strategy for growth, concluded Mr Stewart.