Half - year report for the half - year ended 31 December 2019

• Revenues from ordinary activities up 14.1% to 16,147
• Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) up 11.3% to 1,873
• Profit before income tax benefit down 82.4% to 129 Profit from ordinary activities after tax attributable to the owners of Audinate Group Limited down 59.6% to 341
• Profit for the half - year attributable to the owners of Audinate Group Limited down 59.6% to 341

Dividends

There were no dividends paid, recommended or declared during the current financial period.

Review of operations

For the half-year period ended 31 December 2019, the Group reported an increase in revenue of 14.1% to $16.1 million from $14.2 million in the prior half -year period (six months ended 31 December 2018). Gross margin grew 20% from $10.4 million for the prior half-year period to $12.5 million for the half-year period ended 31 December 2019. Gross margin % also improved to 77.1% from 73.3% for the prior half-year period due to favourable product mix of more software sales relative to lower margin chip sales.

The directors consider Earnings before interest, tax, depreciation and amortisation (‘EBITDA’) to reflect the core earnings of the Group. EBITDA is a financial measure which is not prescribed by Australian Accounting Standards ('AAS') and represents the profit under AAS adjusted for non-cash and significant items.

ASX announcement 16 September 2019

Audinate Group Limited (Audinate or the Company) confirms the appointment of Mr Aidan Williams as Chief Executive Officer (CEO) of the Company effective today, following the retirement of Mr Lee Ellison effective 13 September 2019, as announced to the market on 30 May 2019.

Audinate Chairman, Mr David Krall, welcomed Mr Williams to the role and said “The Board is delighted to welcome Aidan to the role of CEO. As co-founder, Aidan has been responsible for driving the Dante product vision and strategy from the very inception of the business to what it is today. The Board went through a rigorous process to consider successors, which validated our view that our internal candidate was the best choice for our next CEO. The Board and CEO developed a succession plan over the last year to transition the role of CEO and we are confident that Aidan is the right person to lead the Company through its next chapter.”

Audinate (ASX: AD8) announces commercial availability of Dante AV 

Audinate Group Limited (‘Audinate’ or the ‘Company’), developer of the professional AV -industry leading Dante® audio over IP networking solution, today announced the Dante AV Module™ and the Dante AV Product Design Suite™ products are now commercially available for order by manufacturers. This fulfils a prospectus commitment and this announcement marks the beginning of video capabilities in Dante.

Patton Electronics, a US manufacturer and OEM/ODM supplier of networking and connectivity solutions for Pro-AV and Telephony, is the first customer to sign a purchase order and will be among the first to adopt Dante AV by adding the platform into a new generation of AV-Over-IP products.

Completion of Oversubscribed Share Purchase Plan

Highlights

•Strong shareholder support for the A$4m Share Purchase Plan

•Significantly oversubscribed with applications exceeding A$37 million

•Follows oversubscribed A$20 million placement to new and existing institutional investors

" Ultimately, applications received exceeded A$37 million resulting in the SPP being approximately 9x oversubscribed. "

Audinate has announced a share offer to eligible shareholders who held shares on the 5th of June 2019 at $7 to apply for a package up to $15,000.

The funds will be used for:

* Expand global sales penetration

* Accelerate recent product initiatives

* Develop the next generation Dante platform

* Provide additional balance sheet strength and flexibility

The 7th of June announcement indicated that the company is actively ehnancing their product offering.

"... Software-based Dante solutions enable new solutions and business models.For the first time, software developers have a simple solution for adding Dante support to their AV apps with Dante Application Library. UsingDante Embedded Platform, manufacturers can now offer Dante supporting a broader range of price-sensitive products. Both solutions offer substantially more flexibility than dedicated hardware, with the potential to addDante support to products already in the fieldand thepotential for system integrators &end-users to add new features and more Dante channels to products as their systems growand change..."

3 partnered solitions are being introduced during the InfoComm conference in Orlando ( JUNE 8-14, 2019 ) based on the new software products.

* QSCwill begin to deploy the Dante Embedded Platform within the Q-SYS Ecosystem to enable native software-based Dante audio channels

* Analog Devices (ADI)-Audinate announced a reference design with Analog Devices (ADI) for DanteEmbedded Platform on the ADSP SC58x family of chips.

* Zoom Video Communications Inc., a leader in video-first unified communications, has teamed up with Audinate to integrate the Dante Application Library into its Zoom Rooms application for video meetings.

I have been monitoring the demand and volumes of buyers vs sellers for the last month or so and it is consistently about 10 to 1. I feel that the price will be pushed higher perhaps to even $9 within a couple of months.