Constellation Reports $484K Sales, Expands Callisto System to Aged Care Sector

Quarterly Performance and Market Expansion

Constellation Technologies Limited (ASX: CT1), an IoT solutions provider, has released its second quarter update for the period ending 31 December 2024. The company reported cash receipts from sales of $484,000, a minor decrease from the previous quarter attributed to temporary delays in planned rollouts. Despite this, Constellation has maintained momentum in deploying its Callisto Food Safety & Compliance (FSC) system across multiple industry verticals.

During the quarter, Constellation successfully completed several FIFO mining village installations in Western Australia and expanded its footprint with new installations in Queensland and New South Wales. These deployments underscore the growing market adoption of the Callisto FSC system, which integrates real-time monitoring and automated reporting to enhance food safety compliance.

Strategic Entry into the Aged Care Sector

A notable highlight from the quarter is the system's inaugural deployment into the Aged Care sector, a critical and highly regulated market in Australia. Supporting over 250,000 elderly residents across more than 2,700 facilities, the sector faces increasingly stringent food safety and hygiene standards, especially with the upcoming Aged Care Act reforms effective from 1 July 2025.

Constellation’s Callisto FSC system is uniquely positioned to meet these demands by offering real-time temperature monitoring, automated audit-ready reporting, and proactive risk mitigation to prevent foodborne illnesses. This strategic expansion not only diversifies Constellation’s customer base but also taps into a sector with growing regulatory pressures and a clear need for digitised compliance solutions.

Financial Overview and Operational Efficiency

On the financial front, the company reported a net cash deficit from operating activities of $103,000 for the quarter. This was driven by increased product manufacturing costs associated with preparing for future sales activities. Related party payments amounted to $76,000, covering executive salaries, director fees, and office-related expenses.

Despite the cash outflow, Constellation ended the quarter with $674,000 in cash and cash equivalents, providing an estimated 6.5 quarters of funding at the current burn rate. The company continues to operate with a focus on cost efficiency while investing in product development and market expansion.

Looking Ahead

Looking forward, Constellation plans to build on its recent success by pursuing additional installations in the Aged Care and hospital sectors during the March 2025 quarter. The company aims to leverage the enhanced regulatory environment to drive demand for its Callisto FSC system and further penetrate new industry verticals.

This strategic focus on a regulated and essential market segment could prove pivotal for Constellation’s growth trajectory, potentially offsetting the short-term sales fluctuations observed this quarter.