The company’s shares are pushing higher…
The post Etherstack (ASX:ESK) share price soars 7% on initial order with telecommunications giant appeared first on The Motley Fool Australia. –
The Etherstack PLC (ASX: ESK) share price is bucking the trend on the All Ordinaries Index (ASX: XAO) today. This comes after the communications wireless technology company announced a positive update to the market.
At the time of writing, Etherstack shares are fetching for 58 cents, up 7.41%. In comparison, the All Ords is hovering around 7,531 points, down 2.23%.
Etherstack secures first order with AT&T
Investors are sending the Etherstack share price higher after digesting the company’s latest news.
According to its release, Etherstack advised that it has been awarded an initial order with American conglomerate AT&T.
The order is for the supply of Etherstack software licences and equipment, as well as integration and professional services.
Etherstack operates in wireless communications technologies for customers in the public safety, defence, utilities and mining industries. The company’s protocol stacks are exported globally and licensed by leading radio manufacturers.
The first order is expected to generate around US$420,000 (A$575,000) with delivery and revenue to be recognised this financial year.
Etherstack CEO David Deacon commented:
We are extremely honoured to secure our first direct deal with AT&T. It is a great achievement for Etherstack’s team and technology to be able to supply the world’s largest and most venerable telecommunications company.
We look forward to building a lasting relationship on the back of this initial order.
The win builds on the company’s recent success in securing another purchase order with communications provider RCS Telecommunications in May. That deal alone was worth $600,00 with most of the funds received in FY21.
About the Etherstack share price
The majority of the last 12 months has been relatively indifferent for Etherstack shares. However, a sharp and sudden dip in May saw the company’s share price plunge to 46 cents, before picking up again.
Since then, its shares have gradually trodden lower to post a loss of around 7% year-to-date.
Based on today’s price, Etherstack presides a market capitalisation of about $75.1 million and has approximately 131 million shares outstanding.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.