Audinate CEO: Demand for semiconductor chips is "gangbusters"

Fresh off reporting record revenues, record profits, and a 72% gross profit margin, Audinate (ASX: AD8) CEO and co-founder Aidan Williams called the last six months a "cracking" period in the history of the $1.7 billion company. And given the 21% rally in the share price on results day, it's easy to deduce that investors are expecting a lot more of the same from Williams and his team in the second half. But he says you need to hold your horses. 

"I expect we won't have the same revenue growth in the second half. Normally, we have this 45%/55% split for the year. That won't be how it will pan out this year for the full year. But I'm optimistic that our second half will not see any downside," Williams predicts.

But despite his own relatively tepid outlook, the structural story is very much there. Audinate is at the forefront of the global semiconductor chips narrative. Williams says demand continues to soar and the price increases continue to be passed on. 

"I've just come back from a trade show in Barcelona, and that was gangbusters. There are more exhibitors than I've ever seen and there were a record number of attendees," Williams says.

In this wide-ranging interview as part of Livewire's reporting season C-suite coverage, Williams takes me inside Audinate's recent report, its financial goals for the rest of the year, and its M&A aspirations.

Timecodes

• 0:00 - Intro
• 0:27 - What makes Audinate unique in the ASX-listed tech space?
• 2:38 - Key figures from a "cracking" first half
• 3:35 - On the road back to 75%+ gross margins
• 5:50 - How did the global chip supply glut affect your business?
• 7:23 - Commentary on the reducing order backlog
• 10:36 - Seeking out M&A opportunities
• 12:08 - Do you expect to initiate another capital raise to fund these M&A plans?
• 13:04 - Full year profitability and margin goals