On Thursday, the Ava Risk Group Ltd (ASX: AVA) share price rocketed 45.71% to 26 cents per share, following the release of the company's quarterly report.
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What was in the announcement?
Ava Risk Group announced that it had positive operating cash flow of $4 million for the quarter to 30 June 2020. The company's cash balance increased to $7,878,000 from $3,742,000 at the end of the previous quarter.
The announcement stated: "Our strategies for delivering profitable growth and generating positive cashflow produced an increase of $4.1 million in net cash holdings as at 30 June 2020, reflective of a growth in revenues, customer cash collections and positive EBITDA performance."
Ava announced that it had shipped 800 units as part of its IMOD contract for Future Fibre Technology's data network security technology. The company has already recognised $5.0 million from this contract in the 2020 financial year with the remaining balance of around $10 million to be received in financial year 2021.
Ava received a loan from the US Government of $333,000 as part of its coronavirus support measures in the 2020 financial year. It expects this loan to be forgiven, which will result in a $333,000 improvement to the company's income in the first half of the 2021 financial year.
Operating expenditure in the final quarter of the 2020 financial year was $11.7 million with product and manufacturing costs of $7.6 million, staff costs of $2.9 million, together with administration and corporate costs of $900,000.
The company paid $203,000 to its directors during the final quarter of the 2020 financial year.
About the Ava Risk Group share price
Ava Risk Group is a technology company that provides risk management services and technologies to commercial, government, military and industrial clients around the world. Its solutions include intrusion detection, electronic access control, data networks, secure international logistics and storage of high value assets. Ava's team is spread across 6 continents and according to the company, protects thousands of sites.
Ava Risk Group shares are up 225% since their 52-week low of 8 cents and have returned 62.5% since the beginning of the year. The Ava Risk Group share price is up 85.71% since this time last year.
