The Adacel Technologies Limited (ASX: ADA) share price is up by more than 19% today after the company updated the market with its revised profit before tax guidance.
It is welcome news for the technology company, which has been hard hit this year, with shares falling from $0.61 in January to a low of $0.30 cents on 23 March. The Adacel Technologies share price sits at $0.52 at the time of writing.
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What did Adacel Technologies announce?
This morning, Adacel Technologies advised the market it has updated its profit before tax guidance to $4.8 million following strong operational execution. This represents a 20% increase on the guidance that was released to the market in mid-April.
Despite the continuing impact of COVID-19, the company reported that it was able to expedite a number of key infrastructure installations for existing customers in Australia and the US. Furthermore, Adacel was able to complete 2 traffic management projects in Fiji and Portugal.
Adacel also updated its cash balance to approximately $5 million – an increase of around 150% on its forecasts in April. This increased cash balance was attributed to the early completion of the upgrades in the US and Australia, ongoing operating efficacies, and improved cash management.
In the announcement, CEO Daniel Verret expressed his pleasure at the "progress despite the challenges our teams faced with COVID-19." He was also encouraged looking forward into FY2021, and anticipates "continued improvement in our financial performance," assuming "modest and steady recovery from the COVID-19 disruption."
What does Adacel Technologies do?
Adacel Technologies is a global software technology company headquartered in Melbourne and is involved with the design and application of air traffic management and simulation. According to the company, more than 21% of the world's airspace is controlled using its air traffic management technology.
In late June, Adacel received a US$2.8 million order from the US Army for its air traffic control common simulator (ACS) program, demonstrating the ongoing partnership that started in 2013. These simulators will be installed in multiple military locations around the world.
Adacel supports customers worldwide from North and South America, to Europe, Asia Pacific, Africa, Australia and New Zealand. The company has been working with military, defence and security customers, airport authorities and universities for over 30 years.
About the Adacel Technologies share price
Adacel shares have returned more than 23% since this time last year, however are down by 14.75%, year to date. The Adacel Technologies share price is up by 19.54% in today's trade to $0.52 at the time of writing.
