Quixant to deliver higher than expected revenue and profit
Gaming and broadcast industry tech innovator Quixant saw its share price head north after a trading update forecasting full-year revenue of $87.1 million – ahead of market expectations – for the year to December 31.
The AIM-quoted group reported a strong finish to 2021 driven by robust demand for its products across both its gaming and Densitron divisions; Densitron sells control surface, control system, display and computing solutions.
Quixant also expects adjusted profit before tax to be ahead of market expectations despite continued pressure on margins presented by electronic component shortages and price inflation. Net cash at year-end increased to $17.6m from $15m at June 30.
Quixant says the robust trading in 2021 and continued supportive trading environment, despite ongoing COVID risks, positioned the group well for further growth.
It says that since Q2 2020 the gaming market has generally remained resilient to lockdown restrictions and customers have demonstrated increasing demand.
The group says it enters 2022 with a strong order book which provides good forward visibility across both divisions. Management continues to closely monitor and, as much as possible, mitigate supply chain challenges and the impact of cost inflation on overheads and component pricing which are expected to continue into at least the second half of 2022.
The group expects to report its full year results for 2021 on April 5. The current range of forecasts cite revenue of between $78m and $80m with a consensus of $79m and adjusted profit before tax of $4.9m.
CEO Jon Jayal said: “I am pleased to report on positive progress during the year in which we delivered revenue and profits ahead of market expectations.
“Through the careful management of supply chain and working together with our customer base, we have mitigated the impact on the business and our end customers from the acute component shortages facing technology markets.
“These results further demonstrate the strength of the relationships we have forged with our customers, which has resulted in excellent order visibility.
“A robust return of demand and a broadened product offering in the Gaming business, combined with our strategic positioning of Densitron, gives us confidence in the group's short and long-term growth opportunity.”