DXN Limited (ASX:DXN) Reports Strong Q2 FY25 Results
Key Financial Highlights
DXN Limited reported a revenue of $4.8 million for the December quarter, reflecting a robust 58.1% increase from Q1 FY25. The company’s cash balance stood at $5.1 million at the end of December 2024, following a successful $6.5 million capital raise. Notably, the funds were allocated to upgrading the Darwin Property, fostering innovation in modular data centres, and reducing the PURE Asset Management loan balance.
Operational Advancements
During the quarter, DXN launched a new HPC AI Module at the Pacific Telecom Conference, addressing the rising demand for AI infrastructure. The company also progressed key projects, including commencing installations at Stanmore Coal and initiating work on the Pilbara Ports project. Modular Data Centre revenue totalled $4.1 million, heavily driven by existing projects like the East Micronesia Cable Station.
Future Outlook
The company expects sustained growth with new contracts, including a recent $0.6 million agreement with BwebwerikiNET Limited, funded by the Asian Development Bank. This contract enhances DXN’s position in the Pacific Islands and will involve the design and installation of critical modules. The company’s ambition for FY25 remains steadfast at a revenue target of $16.0 million, bolstered by a strategic shift towards high-growth areas.
Motley Fool contributor Abbie Stokes 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 Scott Phillips.
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