Sometimes growth investors get lucky, and sometimes they just get it right.
The Netlinkz Ltd (ASX: NET) share price has surged 350% higher on the ASX in just the last 12 months to close at $0.14 per share yesterday.
But what has driven the Netlinkz share price explosion in 2019, and can it go even higher?
Second quarter explosion
The Netlinkz share price is up 366.7% in the last 12 months, including 250% since the end of March 2019.
This astronomical growth in the last quarter has been driven by increasing growth expectations for the Aussie networking group, as it has continued to announce key partnerships and expanding sales agreements.
The company announced that Blue Tech (a US Federal Government IT solutions provider) would lab test its virtual invisible network solution (VINs) cyber security software in mid-March 2019, before providing an investor update on March 2019 on its China-focused global business model.
What did Netlinkz announce yesterday?
The Netlinkz share price soared 22% higher yesterday. The first catalyst for the share price move was Netlinkz's after-market announcement on Tuesday regarding the successful lab testing of its cyber security SDWAN VIN software.
The company announced that Blue Tech has successfully completed lab testing of the latest version of Netlinkz software and found "no issues with connectivity over VINs whatsoever".
The company also announced that it has received cash proceeds of $160,000 for the sale of VINs as a VPN replacement product from its pilot program with China Telecom Wuxi for the period October 2018 to March 2019, from its China reseller based in Hong Kong and its China-based agent JASTVIN.
Netlinkz management said the agreements the company has in place and the receipt of these payments from the China reseller demonstrates the continuing demand by Chinese corporate customers, confirms the success of the pilot program and the process and effectiveness of its structures.
The sales of the VPN replacement product through JASTVIN will now continue through 51 cities in China as the company continues to expand its sales channels and volume, with management expecting to provide further earnings guidance in the near future.
