Australia

Linius Technologies reduces costs and take steps to mitigate COVID-19 impact

Linius Technologies Ltd (ASX:LNU) has taken decisive action and implemented measures to reduce its operational expenditure and mitigate the impact of COVID-19 on its activities.

Whilst the company expects all personnel to be working from home in the near future as a precaution to COVID-19, business continues.

Being a global organisation with teams working across multiple continents, the company is well equipped and highly practised at having a number of staff work remotely and this is anticipated to have minimal impact on its operations and current commercial deployment plans.

Cost savings

The companys most recent Appendix 4C forecast cash outflows for the third quarter of FY2020 of $1,878,000 or $626,000 per month, a reduction of $107,000 per month from the prior quarter.

In addition to the long term reductions already incorporated into Linius budget, the company has now made a series of new and immediate specific cost reductions extending its operational runway through the first quarter of FY2021, including the board and senior management taking significant pay cuts in the short term ranging from 20% to 80% of total compensation.

Revenue growth

Linius commercial activities are continuing to achieve success with strong recent wins and client deployments, plus new client opportunities in the near pipeline.

  • Racing.com – based on the positive trend in utilisation of the Replay Hub launched in November 2019, Racing.com is rolling out the technology across other business areas.
  • IBM – continues to introduce Linius to its anchor clients as a result of the IBM relationship and successful release of the Digital Asset Trust Network (DATN) in September 2019.
  • Microsoft – the Microsoft Co-sell Partnership has resulted in Read More – Source