Australian IoT solution provider Sensera (ASX: SE1) has posted a 15% growth on full year revenue figures for FY 2020 of $16.9 million.
The figures compare to the previous year’s $14.7m and were partly affected by the impacts of COVID-19 disruptions which to date have primarily affected the company’s IOT Solutions business.
Revenue for the final quarter of the financial year came in as projected at $3.3m while a gross margin of 60% was also in line with expectations.
Gross margin for the full year was recorded at 48%, representing an improvement over the 41% achieved in the previous year.
Sensera said a product mix shift, and changes to manufacturing and product models have improved overall margins, with the second half of the year totalling close to the 60% gross margin target model.
The company retained global animal health company Zoetis as its largest customer during the fourth quarter and despite a COVID-related slowdown in mining and manufacturing, achieved shipments to an additional eight customers.
Despite the pandemic restrictions, Sensera said its revenues remained resilient and its progress supported by recent contract wins.
In June, the company entered into a strategic partnership with US-based Triton Systems to integrate its “location aware” IoT technology with Triton’s artificial intelligence and sensor innovations for asset-tracking applications used by the US Department of Defence.
The two companies signed an agreement to create a reliable, end-to-end solution for monitoring and tracking the location and operational-readiness of military and security assets at the department’s 800 bases located across 70 countries.
Sensera also made progress on a European rail safety project where its technology has been tested and approved to move to the next phase.
Material revenue on both projects is expected to be realised in the second half of the 2021 financial year.
Sensera’s MicroDevices division posted a 2020 revenue of $6.8m aided by its essential role in medical markets during COVID-19.
Over $2.89m in new orders were obtained in the final two months of the year for the development and delivery of sensors to be used in the detection of a COVID-19 solution.
The sensors are in pre-production and the company expects to ramp up into full production in 2021.
With restructuring and cost-cutting initiatives at the fore, Sensera said it had been managing its cash in order to navigate through COVID-related business issues.
“Our management team believes we have made meaningful progress in building out a business which will be sustainable by significantly reducing costs and increasing margins,” the company said.
“While [it has been] a difficult market environment during COVID-19, we have been able to move multiple customers and opportunities forward to lay the foundation for a robust new financial year.”
At midday trade, Sensera shares were 25.93% to $0.034.