We’re pleased to advise that Gleneagle has successfully recruited Raj Logaraj to join the Board of Elsight. Gleneagle will work closely with Raj to expand Elsight’s pipeline in the Indo Pacific region – namely, Singapore, Indonesia, Hong Kong, Philippines, Malaysia and, of course, Australia.
Click here for today’s announcement.
Highlights from the Quarterly Update announced on 31 July:
- Revenue for Q2 2018 rose by 51% to US$ 374,000 over its Q2 2017 revenue. Quarter-on-quarter, revenues increased by 33% from Q1 2018’s revenues of around US$ 281,203 which makes the company’s year-to-date revenues somewhere in the amount of US$ 655,203
- The largest order came from Maxtech Networks, a wireless communication company called in to assist in the recent successful Thai cave rescue mission. Maxtech turned to ELS to purchase a clear, reliable and secure video transmission solution for integrating with its Snipertech technology.
- Moving forward, ELS is expecting revenues to exceed US$3 million by year-end as management expects growth rate to accelerate further in the second half.
Elsight has a commanding position in the video on-the-move communications sector. Elsight is the only solution to distribute 4K resolution (ie broadcast quality) video over cellular networks ‘on the move’ with 0.5 second latency. The nearest competitor suffers 60 second latency.
We expect this sector to grow rapidly as organisations are finally able to use AI to process video streams from the field, in verticals such as Defence, Security, First Responders and Transport. The recent raising of US$600m for an AI Video start up indicates what's ahead.
ELS is attractively valued. Its $60m valuation is underpinned by rapid sales growth in HLS and huge upside in the long term via the autonomous vehicle sector (which could be realised by spinning-off Elsight’s tech in that vertical). The Company and TMT Research projects $4m revenue in 2018, being a 400% increase on prior years.
Click here for TMT's Research Report.
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Corporate Finance - Executive Director
Gleneagle Securities (Aust) Pty Limited
Level 27, 25 Bligh Street, Sydney NSW 2000
Mob: +61 414 450 154
Ph: +612 8277 6683 | Fax: +612 9475 0154