NetComm flags bullish 18 months ahead

Strong international demand could see a tripling of revenues by 2H 2011

Networking hardware vendor NetComm (ASX:NTC) is predicting a bullish 18 months ahead, forecasting a tripling of its revenues by the second half of 2011.

In a market guidance provided to the ASX today, the company said that investment in the development of 3G gateway technology and international expansion in 2009 and 2010 would see revenues grow from 22.9 million in the first half of 2010 to between 33.9 and 39.3 million in the second half of 2010.

In the first half of 2011 this was expected to grow to between 42.0 and 48.0 million and in the second half of 2011 to between 58 and 68 million.

EBITDA is predicted to grow up to eight times from $900,000 in the first half of 2010 to between $5.5 million and $8.5 million in the second half of 2011.

According to the guidance, strong orders were also fuelling the aggressive growth estimates, including existing supply agreements with UAEcarrier Etisalat and Canadian carrier Telus, an ongoing relationship with Telstra, and continued growth in the company’s ADSL equipment business.

In a May investor update presentation the company said growth in the mobile broadband equipment segment was estimated to average more than 55 per cent for the next four to five years.

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