An NBN Co hardware deployment contract has seen NetComm Wireless’ revenue and profits boom for the first half of the 2018 financial year.
The networking vendor saw its revenue surge to $88.6 million in the six months leading up to 31 December 2017, compared to $47 million in the previous corresponding period.
NetComm landed the deal with NBN in 2016 to supply one-port and four-port distribution point units (DPUs) and related services for the fibre-to-the-curb (FTTC) project, the rollout for which is set to commence in the second half of the current financial year.
“We were pleased to have further enhanced our relationship with nbn, signing a contract to supply [Network Connection Devices (NCDs)] for their FTTC project,” NetComm chief executive Ken Sheridan said.
“This world-first device incorporates a Gfast/VDSL modem with Reverse Power Feed capability, as well as monitoring and diagnostics reporting in a single device.”
The wireless networking specialist posted an after-tax profit of $3.7 million, compared to a loss of $1.7 million in the half year ending 31 December 2016. EBITDA meanwhile was $9.2 million, up from $700,000.
“It has been a very strong period for NetComm as we continued to deliver our strategic plan,” NetComm chairman Justin Milne said.
“I am particularly pleased to see NetComm achieve outstanding growth following critical investments made over the past two years.”
The Sydney-headquartered telecommunications equipment vendor also shipped out initial orders for its contract with AT&T and its rural broadband project.
“Over the period we received material revenues across several of our key contracts, as our high growth M2M business expanded,” Sheridan said.
“We continued to rollout the Ericsson/NBN fixed wireless contract and anticipate launching a new 100mbps service this calendar year, our third technology upgrade in only four years.”
Sheridan added that while the initial rollout with AT&T had been slower than initially expected, NetComm expects an “acceleration” in the next financial year as the US telco looks to ensure 1.1 million premises are available for service by 2020.
Meanwhile, NetComm also expects to continue revenue and EBITDA growth for the rest of the financial year as the contracts proceed with the rollouts.
“Having strengthened our sales presence in our key strategic markets of Europe, UK and North America, we are keenly focused on winning new business from Tier 1 Carriers,” Sheridan said.
“Having delivered operational success across our key growth business and with a strong balance sheet and cash at bank, we are in an excellent position to continue to grow. The benefits from the investments made to enhance our engineering capabilities are flowing through as we become a leading bespoke telecommunications technology solutions provider in global markets.”