The Audinate Group Ltd (ASX: AU8) share price has been volatile in morning trade, opening today's trading session down more than 10% following an announcement released by the company late yesterday.
What did Audinate announce?
Following yesterday's trading session, Audinate released a statement to the market announcing that the company will host an investor briefing today. The briefing is designed to discuss the company's 2019 annual results and also provides an opportunity for investors to ask questions.
Audinate is scheduled to release its 2019 annual results on 23 August. Management are enthusiastic about the strong growth prospects of Audinate's core business.
Outlook for Audinate
Despite today's fall, the Audiante share price has had a huge run in 2019, up more than 83% for the year. Audinate provides hardware and software solutions to the audiovisual (AV) market. The company's flagship and award-winning Dante program is a global leader in AV connectivity. Dante eliminates the need for traditional analogue connectivity and transmits synchronised audio signals across large distances via IP networks. The platform is used extensively across the professional live sound, commercial installation, broadcast, public address, and recording industries globally.
Following strong full-year results in 2018, Audinate has set key priorities to underpin growth in FY19. These include:
- Geographic expansion of sales and support teams
- Broaden the suite of core Dante products to accelerate penetration with OEMs
- Invest in development of Dante video solutions
- Continue the roll-out of Dante Domain Manager and Dante AVIO adapters.
Early last month, analysts at broker Morgan Stanley initiated coverage on Audinate with an 'overweight' rating and price target of $10.30. Analysts cited the company's dominant industry position in the AV sector and structural tailwinds as signs of future growth. The broker noted that Audinate has a strong future in networked audio and expects strong sales growth in audio, software sales and revenue from Audinate's expanded video offering.
At the time of writing Audinate's share price has bounced strongly from the opening low of $6.01, trading at around $6.45.
