• Revenue decreased 38.4% to $28.7 million due to customers working through inventory
• Gross margin improved to 82.5% due to increased software sales
• EBITDA declined 91.5% to $0.8 million, net loss of $2.2 million

For the half-year period ended 31 December 2024, Audinate Group Ltd reported a 38.4% decrease in revenue, declining to $28.7 million from $46.6 million in the prior corresponding period. In US dollars, revenue decreased by 38.0% to US$18.9 million. This was due to the company's manufacturing customers working through accumulated inventory balances, leading to a dampening in short-term demand for Audinate's chips, cards and modules products. Gross profit decreased by 29.3% to $23.7 million, but the increased contribution of software sales resulted in an improved gross margin of 82.5%, up from 71.8% in the prior period. Operating expenses decreased by 1.1% to $23.1 million, with a $1 million reduction in employee costs partially offset by higher sales and marketing, and administration expenses. EBITDA declined 91.5% to $0.8 million, and the company recognized an income tax benefit of $2.1 million, resulting in a net loss after tax of $2.2 million, compared to a net profit of $4.7 million in the prior corresponding period. The company's core business metrics remained strong, with the number of OEMs in the process of developing their first Dante product increasing to 173, and the number of OEMs shipping Dante products increasing to 476.