The Straker Translations Ltd (ASX: STG) share price has defied the market weakness and stormed higher today.
In afternoon trade the AI data-driven language translation platform provider's shares are up almost 4% to $1.82.
Why is the Straker share price charging higher?
Investors have been buying Straker's shares today following the release of its second quarter update.
According to the release, Straker posted cash inflows of NZ$7.3 million during the second quarter. This was a 15% increase on the same period last year and a 19% lift on the first quarter.
The company also reported improvements in its operating net cash outflows. This was reduced to a NZ$0.3 million outflow. And if you exclude the NZ$0.27 million of restructuring costs, the business would have been close to breakeven. Straker finished the period with cash and equivalents of NZ$14 million.
Straker's CEO and co-founder, Grant Straker, was pleased with the quarter.
He said: "The benefits from our growth strategy were evident in our second quarter performance, with continued growth in cash inflows moving the Company closer to cash breakeven, reflecting the successful integration of acquisitions made over the past 12 months and our growing pipeline of new business opportunities, including further progress with potential enterprise clients."
Outlook.
The company continues to execute on its five-point growth strategy and is in advanced discussions with two acquisition opportunities. Management believes these opportunities will build on its large and recognisable position in the global translations market.
It is also making progress with its evolution to service the large enterprise/corporate segment of the market, with a dedicated global sales team. Although the lead times for these are longer, the size of the opportunities are multiples larger. This focus has led to the company ending the period with its largest ever pipeline of new business opportunities.
As a result, management is confident that the current opportunities will deliver strong revenue growth in the second half and beyond.
