Stratech: 4QFY15 swung to a net profit from $2.4m, a sequential improvement from $1.8m net loss in 3QFY15. Nevertheless, FY15 net profit was only half of last year’s at $732,000.
In the year, revenue expanded 48.3% to $16.5m, from both existing and new contracts, including the installation of iFerret at Dubai International Airport, Hong Kong International Airport, and at the airbase of a top air force.
Gross margin fell 24.8ppt to 58.4% due to higher proportion of third party components.
Bottom line dragged by a 14.1% increase in net operating expenses to $8.9m, as increased administrative expenses from the group restructuring was offset by lower amortization assets as some intangibles have been fully amortized.
Management is currently in negotiations to install the iFerret at a major international airport and securing orders for other products such as the iVACS (intelligent vehicle access control system), and Super BullsEye II (advanced weapon scoring system).
Meanwhile, the recently awarded contracts for airfield surveillance systems in Hong Kong and Singapore are expected to contribute to FY16 earnings.
Stratech is trading at trailing P/E of 8.4x
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