US-based Connected IO (ASX: CIO) is on target to achieve its fourth consecutive quarter of growth, with the company expecting more than $1 million in cash receipts for the three months ending June.
By the end of May, Connected IO had received $501,000 in cash for the June quarter, with shipped and invoiced products amounting to a further $536,000.
According to Connected IO, the majority of its revenue arises from recurring orders, which are coming from an increasing customer base.
“This has been an exciting period in the history of Connected IO as the company has undergone important changes as it transitions to the next stage of its development,” Connected IO managing director Yakov Temov said.
Mr Temov said the company’s strategy to establish long-term relationships with key clients and partners had led to the record cash receipts and revenues during the current quarter.
During the March quarter, Connected IO reported revenue of $640,000, which was a 16% increase on the December periods of $560,000.
Connected IO business
Connected IO is targeting the trillion-dollar internet of things (IoT) market with its hardware and technology.
The company produces routers, modems and communication solutions for security, surveillance, and energy management fields.
A new product line was introduced during the March quarter with the company shipping its CR48NA operator agnostic multi-SIM router for the first time.
Connected IO claims the product represents a “giant leap” in its strategy to transition from hardware manufacturing to providing turn-key subscription-based services comprising both hardware and software.
The CR48NA router is compatible with 5G technology and has been targeted at managed service providers in the US, with the managed service provider market expected to grow from US$180 billion in 2018 to US$282 billion by 2023.
This morning’s news regarding Connected IO improving business performance drove the company’s share price up 50% to $0.003.