Netlinkz Limited (ASX: NET) today reported record receipts from customers for the quarter ended 30 September 2020.
Growth in receipts has been driven by increasing demand for its VSN platform, particularly in China.
Netlinkz, an Australian software company that specialises in secure virtual network solutions, has been refining its data security products since 2014.
Its core product is a globally-patented, award-winning technology called the Virtual Invisible Network (VIN), which is proving to be a popular network security solution around the globe.
Its China connection was made particularly strong during the formative days of COVID-19.
As the pandemic gripped the world, NetLinkz through its 80% owned Beijing iLinkAll Science and Technology Co. Ltd, was asked to help lead the fight against the virus, whilst improving information flow and work process using NetLinkz’s VSN.
iLinkAll is the 2019 award winner of the Innovative Cloud Service Platform by the China Software Industry Association. It leads the China SDN market in providing innovative intelligent enterprise solutions to secure networks and assists their digital transformations.
Since the COVID outbreak, there has been enormous upside.
NET receipts from customers grew 77% quarter-on-quarter to $5.5 million (June quarter 2020: $3.1 million).
Further to this, recurring revenue continues to track up and is likely to account for a greater percentage of customer receipts as new VSN deployments are secured.
“Netlinkz is very pleased to report continuing top line growth and the September quarter is another record performance. That said, based on the large market opportunity we have in China and with the Indian market opening up to us through the Natsoft partnership, we can say with every confidence that customer receipts will continue to increase considerably from here,” Netlinkz Executive Chairman and Chief Executive Officer James Tsiolis said:
“A key focus for our team right now is to deliver our greatly enhanced VSN ‘2’ platform which is in the final stages of development. Enhancements to the platform ensure that we maintain a market-leading position and deliver high levels of tendering success. We look forward to reporting on progress as well as some other pleasing growth initiatives we are close to delivering.”
For Netlinkz, this is the third consecutive quarter of strong growth in receipts from customers this calendar year.
The company is now comfortably placed to meet its previously stated guidance of $15.5 million of receipts from customers by the end of CY2020 and is currently working on forecasts for FY2021 to give shareholders a clear comparison between FY2020 and FY2021 performance.
About NET’s VSN
NetLinkz’s VSN allows organisations to underpin their network operations with an intelligent networking platform that provides a secure and elastic network overlay that extends all the way to the edge of the organisation’s network and offers high quality of service and infinite scalability.
The following graphic highlights its capabilities:
VSN utilises an award winning, world-class encryption that protects all network transmissions from edge to edge. In fact, the benefits of the VSN are many and varied:
- VSN offers autonomous adjustment of bandwidth & smart routing
- VSN can switch between peer-to-peer and mesh mode
- VSN employs a powerful backbone over any existing network
- VSN uses access control lists (ACLs) to ensure that network services are only available to authorised users – making the network invisible to unauthorised users
- Security policy management is centralised in the VSM and enforced at the edge
- VSN blends open standards with cutting edge virtual technology, giving it a rich feature set that is ahead of the SDWAN market
- VSN offers 5G-ready edge devices that support IoT and extends the network edge to the mobile device for demanding branch edge deployments.
- Leapfrogs latent technologies
These benefits, along with creating a secure network were paramount in the Beijing government selecting iLinkAll to help combat COVID and put people back to work.