Netcomm Wireless Ltd shares are surging on an NBN deal

Shares in Netcomm Wireless Ltd (ASX:NTC) have surged over 20% to $1.36 in today's session following the company's announcement that it had secured a large order from NBN Co Ltd.

Tim Katavic

Tim Katavic has been a contributor to The Motley Fool Australia since September 2017. He is a member of CPA Australia with a background in audit and assurance, business advisory services and taxation. Tim prefers growth investing over value investing and has a keen interest in the aerospace, financial services, gaming, healthcare and information technology sectors on the Australian and U.S. equity markets.

Published December 4, 2017 3:19 pm AEDT

Shares in Netcomm Wireless Ltd (ASX: NTC) have surged over 20% to $1.36 in today's session following the company's announcement that it had secured a large order from NBN Co Ltd for its world first product Network Connection Device.

The initial order from NBN is also expected to grow over time and will generate $66 million of revenues to NetComm.

NetComm is a developer of Fixed Wireless broadband, Fibre to the distribution point (DPU) and wireless M2M/Industrial Internet of Things technologies.

The last 12 months have been a disappointment for shareholders with the stock plunging from its 52 week highs of $2.29 in December last year to bottom at $1.03 in October.

In FY17, the company grew revenue by 26.2% to $107.6 million and posted a net loss of $1.8 million because of an extensive investment of $12.6 million in additional staff and increasing its capability to scale up existing contracts.

The company has a strong balance sheet with $22 million in cash at June year end with no debt and should enjoy a re-rating following today's positive announcement.

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