BrainChip Holdings Limited

BRN signed MOU with Socionext America:Artificial Intelligence Service Provider, BrainChip Holdings Limited (ASX: BRN), reported an increase in revenue by 252% on pcp basis to US$947,989 in FY18. This was primarily due to revenue realization from the Gaming Partners International (GPI) agreement.

Its net loss after tax increased by 20% pcp to US$16,523,186 in FY18, due to increased total expenses by 24% pcp to US$17,601,775 in FY18. The R&D expenses increased by 80%, selling & marketing expenses increased by 188%, general & administrative expenses increased by 7%, and share-based payment increased by 5%. In a recent update, BRN signed MoU with Socionext America Inc. for the development of Akida^TM Neuromorphic System-on-Chip (or NSoC).

Moreover, S&P Dow Jones Indices has recently announced the changes made in the S&P/ASX Indices. As a result, BrainChip holdings has been removed from All Ordinaries effective from the open on March 18, 2019. It is to be noted that the company has appointed Roger Levinson as Chief Operating Officer and Ken Scarince as Vice President of Finance, Controller.


FY18 Financial Metrics (Source: Company Reports)

What to Expect From BRN: There are expectations that BRN might improve its margins in the forthcoming year which can be supported by the recent developments. BrainChip partnered with SoftCryptum in January 2019 to deliver BrainChip Studio’s AI-powered video analytics to government agencies in European countries. During the December 2018 quarter, the group completed a successful trial of BrainChip Studio with a major US-based storage manufacturer and subsequently shipped a BrainChip Accelerator for further evaluation. This is a significant development for potential large-scale deployments. In February 2019, the company appointed Stephe Wilks as Non-Executive Director and Chairman of the Company’s Boardand expanded its distribution network of BrainChip Studio in Europe with the engagement of Novo Technologies in Greece and Cypress.

BRN’s share has generated negative YTD return of 37.76% while, in the span of previous one month, the return was -18.67% which indicates that the stock is quite volatile. Hence considering the decent outlook and current trading level, we reiterate our “Speculative Buy” recommendation on the stock at the current market price of $0.061 per share.
 

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.