TerraNet has announced a new order worth SEK950k ($113k) from a world-leading provider of passive and active safety in the automotive sector. TerraNet is already working with this tier one company to provide sensor-based vehicle communications for offline and non-cellular network services (using TerraNet’s know-how in direct device-to-device Wi-Fi based wireless communication). This specific order is for the continued development of LTE (long-term evolution – or 4G wireless technology) for use in autonomous vehicles. This order is a particularly important verification of the group’s progress in bringing its direct Wi-Fi communications expertise to the LTE space, which is widely expected to become the communication medium of choice for vehicle-to-vehicle (V2V) communications in the future. On this basis, the development of a software module for sale by a leading tier one provides substantial upside potential for the group.
Written by
TerraNet |
New V2V order from leading tier one company |
New order |
Technology |
7 December 2017 |
Share price performance
Business description
Analysts
TerraNet is a research client of Edison Investment Research Limited |
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TerraNet has announced a new order worth SEK950k ($113k) from a world-leading provider of passive and active safety in the automotive sector. TerraNet is already working with this tier one company to provide sensor-based vehicle communications for offline and non-cellular network services (using TerraNet’s know-how in direct device-to-device Wi-Fi based wireless communication). This specific order is for the continued development of LTE (long-term evolution – or 4G wireless technology) for use in autonomous vehicles. This order is a particularly important verification of the group’s progress in bringing its direct Wi-Fi communications expertise to the LTE space, which is widely expected to become the communication medium of choice for vehicle-to-vehicle (V2V) communications in the future. On this basis, the development of a software module for sale by a leading tier one provides substantial upside potential for the group.
Year end |
Revenue* (SEKm) |
EBITDA |
EPS** |
Net operating |
Net debt/ (cash) (SEKm) |
EV/revenue (x) |
12/15 |
0.4 |
(17.2) |
(2.4) |
(13.3) |
(5.2) |
1112.2 |
12/16 |
2.7 |
(25.0) |
(3.2) |
(22.6) |
(4.1) |
162.5 |
12/17e |
6.5 |
(58.3) |
(3.5) |
(54.7) |
(54.3) |
66.7 |
12/18e |
39.7 |
(70.7) |
(3.2) |
(70.1) |
22.0 |
10.9 |
12/19e |
121.2 |
(24.4) |
(1.2) |
(29.5) |
60.8 |
2.6 |
Note: *External revenues excluding own work capitalised. **EPS are normalised, excluding amortisation of acquired intangibles and share-based payments.
TerraNet is working to quite a tight deadline. TerraNet and its partner intend that the embedded software module will be licensed and serve as an integral system component in new light vehicles by 2020.
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Disclaimer
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Disclaimer
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7digital is proposing to raise £8.5m (before expenses) through the issue of up to 212.5m new shares at a price of 4p, a 22% discount to close on 30 November. £8m of this has already been placed or subscribed, with £0.5m available via an open offer. The shares will be admitted to AIM on 19 December, subject to shareholder approval.