It certainly has been a great day of trade for the NetComm Wireless Ltd (ASX: NTC) share price.
As we approach the close, the broadband equipment company's shares are up 16.5% to $1.31.
What happened?
This morning NetComm released its half-year results which revealed an 89% increase in revenue to $88.6 million. During the half earnings before interest, tax, depreciation and amortisation rose 13 times on the prior corresponding period to $9.2 million.
Ultimately, this improved performance led to net profit after tax of $3.7 million, compared to a loss of $1.7 million in the prior period.
The main driver of this growth was its M2M business, which now accounts for 85% of total company revenue. M2M more than doubled revenue during the half to $75.1 million.
During the half the company benefitted from large orders received in relation to the FTTC DPU contract with the nbn and the initial order of fixed wireless units by AT&T in the US for its rural broadband project.
Pleasingly, management appears to expect more of the same in the second-half. It advised that it anticipates strong revenue and EBITDA growth over the remainder of FY 2018 as key contracts are further rolled out.
While the nbn rollout may be the bane of companies like Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPM), it certainly appears to be a big positive for NetComm.
