artec technologies - Carrying sales momentum into FY20
FY19 revenues of €2.0m were weaker than management expected due to a small number of material contracts failing to materialise by year-end. However, those contracts did not disappear and investment in sales in FY19 led to a strong start to H120 (management estimates H120 revenues will exceed €1.5m) with momentum expected to continue in H220. Recent trading has highlighted the benefits of a flexible, diversified business, with the security segment (DACH-focused, government contracts) benefiting, while uncertainty is higher in the broadcast segment (international, private sector clients), despite market share gains following the exit of Verizon Volicon. However, COVID-19 uncertainties make forecasting difficult, particularly for Q420, typically the strongest quarter. With net cash of €0.5m, artec remains sufficiently capitalised and, if management can build on a strong H120, we believe there is significant upside to the shares.Artec Technologies AG is a Germany-based company engaged in the development, production and sale of software solutions and complete systems in the field of digital technology. The Company operates through two segments: Video Security Technology and Media and Broadcast. The Video Security Technology segment develops MULTIEYE product and system solutions for video surveillance and security systems at airports, banks, museums, shopping centers, car parks, railway stations logistic centers, as well as private and industrial facilities. The Media and Broadcast segment offers product and system solutions for the transmission, recording and replay of television (TV), video and radio broadcasts via network or the Internet, including Internet Protocol television (IPTV).
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