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

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.

Linius Technologies Ltd - Linius Technologies reduces costs and take steps to mitigate COVID-19 impact
The company’s commercial activities are achieving success with strong recent wins and client deployments

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 company’s 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 LNU being actively introduced to MSFT partners, with a core opportunity now being worked on in corporate communications.
  • European Security agency – a foreign government has successfully piloted Linius technology centred on counter-terrorism activity, with imminent operational trials.
  • Stats Perform – a partnership agreement has been signed whereby Stats Perform and Linius will co-market and co-sell video solutions to sports content and rights holders globally.
  • SportsHero – following the delivery of the tech by Linius to SportsHero in December 2019, SportsHero will launch their capability at the start of 2020 Piala Asean Football Season.

Quick facts: Linius Technologies Ltd

Price: 0.014 AUD

ASX:LNU
Market: ASX
Market Cap: $18.34 m
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