It’s hard to ignore that the tech stocks have been having a hard time lately not only on the ASX but also on the global indices.
In the past year, the Australian tech market is down by 29.95%, with shares particularly taking a trashing in the first six months of 2022.
However, the last month has witnessed some positive indications for the information technology sector, leading the pack with 19.58% growth, with all the other sectors and the S&P/ASX 200 Index in the green as well.
ASX sectors past month.
Industry trends
Investors are most optimistic about the communications industry even though it's trading below its three-year average PE ratio of 390x.
Analysts are also bullish on the semiconductors industry, expecting annual earnings growth of 74% over the next five years.
Interestingly, the IT industry is also expected to see its earnings grow by 29% per year over the next few years.
Tech sector trends - past three months.
In the spotlight: ASX Tech stocks
Despite a slow start to the year, the technology sector is slowly gaining momentum driven by strong figures and positive news flow.
archTIS
archTIS Ltd delivered strong financial figures during the quarter ending June 30, 2022, driven by a $7 million contract with the Australian Department of Defence, the largest in the company’s history.
During the quarter, the company recorded $1.4 million in revenue, up 58% from the previous quarter and licensing revenue up 91% from the previous corresponding quarter in 2021.
Looking ahead, the company is providing revenue outlook guidance for a minimum year-on-year increase of 60% with current visibility for triple-digit growth in FY2023.
archTIS quarterly figures.
Hiremii
Hiremii Ltd (ASX:HMI) revealed strong financial gains during the June quarter with $4.2 million in quarterly revenue, up 152% compared to the corresponding quarter in 2021.
The company also delivered annual revenue of $11.4 million, up 65% compared to the previous corresponding period in 2021.
The June quarter saw Hiremii’s client base growing in its core markets of energy, resources and technology, thereby recording an increased demand for a highly skilled workforce to help with decarbonisation and energy transition.
Hiremii quarterly revenue.
Way2VAT
Way2VAT Ltd (ASX:W2V) had a busy June quarter, with transaction volumes increasing by $5.64 million, up 153% compared to the previous quarter.
During the quarter, the company partnered with Railsbank (now Railsr) to launch the Spend Debit Mastercard – the world’s first spend card for the SMB and enterprise market that fully automates VAT/GST returns from end-to-end.
The company also signed new deals with major multinational enterprise clients including TikTok – taking enterprise client numbers to 215 – a 25% increase in 12 months.
Spenda
Spenda Ltd (ASX:SPX) produced a strong June quarter, generating quarterly cash receipts of $693,000 and annual cash receipts of $2.3 million, representing 107% growth from the full year in FY2021.
During the quarter, the company recorded $3.5 million growth in B2B payment flows, up 500% from the previous quarter.
Subsequent to the end of the quarter, Spenda secured a $50 million in debt warehouse facility to accelerate the growth of its lending and payment services.
The company’s lending portfolio remained stable during the quarter, with further capital expected to be deployed moving forward now the debt warehouse is established.
Archer Materials
Archer Materials Ltd (ASX:AXE, OTC:ARRXF) is well funded with about $26.4 million in cash at the end of the June quarter, taking its 12CQ quantum chip technology to new heights.
During the quarter, the company expanded its 12CQ quantum chip technology patent protection in the US, China, South Korea, Japan, and Europe, with a patent grant in Australia.
Archer continued its focus on developing advanced semiconductor design, fabrication and prototyping, by achieving 15-nanometre feature size fabrication.
Moving forward, The company is actively and regularly pursuing exposure to global industry participants in the US relevant to quantum computing and lab-on-a-chip biochip technology.
Archers 12CQ quantum chip technology.