Artificial intelligence security company Spectur has delivered a record Q1 in FY23, with $1.657 million of revenue in sales of its solar-powered surveillance platform – a solution that MD Gerard Dyson describes as being like “the first smartphone in a world of flip-phones”.

The company’s revenues in the quarter were 15% higher than Q1 FY22 and represent the second-highest quarter on Spectur’s record, coming during what the company views as a ‘bearish’ environment.

“Against a backdrop of otherwise challenging global markets and economic conditions, the strong growth in the business and momentum that we are carrying at this time are very encouraging,” Dr Dyson said.

Recurring revenue, comprising rental or subscription agreements, made up 56% ($932,000) of total revenue, equivalent to a yearly run rate of $3.73 million.

Source: Spectur

The company’s unweighted pipeline of sales opportunities was $10.1 million at 3rd October 2022, slightly down from $10.2 million at 18th July 2022.

The weighted sales pipeline grew 17% compared with Q1 FY22 to $4.14 million, representing some opportunities moving from the unweighted to the weighted pipeline and other opportunities moving forward with what Spectur believes is an improved likelihood of success.

Notably, this strong residual pipeline follows the strongest Q1 of new contracts sold in the company’s history.

Source: Spectur

Coming out of two recent oversubscribed capital raises totalling $3.01 million, the company sits on a cash reserve of $2.8 million as at September 2022.

Of the $849,000 spent on operating activities, two of the largest areas of spending were legal, investor relations and brokerage costs related to the capital raising activities ($311,000) and building inventory to address the impact of supply chain risk (approximately $250,000).

“We successfully raised the capital required to support growth and improve profitability  in the medium term. We are expecting another strong quarter of growth in Q2 FY23 with far lower cash consumption,” Dr Dyson said.

Spectur realises tech advances and market expansion

Earlier investments in its engineering division are aiding the company’s transition to modular software and hardware architecture.

Spectur’s flagship STA6 platform received a ‘mid-life refresh’ with higher modularity, simplicity of production, configuration and maintenance – upgrades good enough to sell 16 units a week into its launch.

With growing interest in Spectur’s technology across its customer base and the media, specifically with beach warning applications, the company expects to increase its local market dominance in the unpowered safety and warning systems sector.

A dedicated sales division in Adelaide and a growing team in Auckland extend Spectur’s presence across Australia and New Zealand to address pent-up demand for better solutions and increasing market activity.

Pursuant to entering the US market – an estimated $250 million addressable market for Spectur outside Australia and New Zealand – the company undertook an initial desk study, soon to be supplemented by visits to high-profile industry conferences in Los Angeles and New York in November.

Late in September 2022, Spectur was confirmed to be eligible for the Federal Government’s Export Market Development Grant. The quantum of the grant is related to the number of successful applicants, with comparable prior year grants valued at $24,600 per annum.

The grant is expected to coincide with and potentially support the company’s ongoing market expansion plans over three years.

Spectur MD Dr Gerard Dyson will be holding an investor briefing on Friday, 21st October at 11am (AEDT), where he will provide a company update and discuss the developments in more detail. Click here to book in.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of Spectur Limited and will receive fees for its services.

Past performance is not a reliable indicator of future performance.

Sources:

• Stockhead, ‘We are the first smartphone in world of flip phones’: Spectur’s unique surveillance tech is taking off
• Spectur ASX Announcement, Spectur Limited (ASX:SP3) Completes Strongly Supported Security Purchase Plan Offer
• Spectur ASX Announcement, Spectur Limited (ASX:SP3) Quarterly Activities Report
• 10times.com, International Security Conference & Expo
• ndecalifornia.com, NATURAL DISASTERS EXPO CALIFORNIA