Small technology shares delivered a mixed week, with Cycliq and Identitii leading the biggest reported gains while several companies fell despite new deals or technical progress.
Investors rewarded stronger cash results, but continued to question losses, new share issues and early-stage projects.
- Cycliq rose 25.00% after cutting its loss by 83%, despite lower sales.
- Identitii gained 22.08% after reducing debt through a share issue.
- Infotrust climbed 20.00% after repaying bank debt and buying Catalyst Cyber.
- Defence, cyber security, artificial intelligence and data centres remained the week’s main business themes.
- Loss-making companies still faced selling when capital raises or weak revenue clouded their plans.
Cycliq Group (ASX:CYQ), Identitii (ASX:ID8) and Infotrust (ASX:ITS) recorded the biggest reported weekly gains. Cycliq rose 25.00% after cutting its annual loss to A$85,897, even though revenue fell 20.7%. Identitii added 22.08% after converting A$128,944 of debt into shares. Infotrust gained 20.00% after selling its cloud business, clearing bank debt and holding A$18.3 million in cash.
Simble Solutions (ASX:SIS) moved the other way, falling 20.00%. Its NanoSensor detected gases at very low levels, but the company is still testing sensitivity and reliability. Investors may want proof of paid customer use before placing much value on the technology. 4DS Memory (ASX:4DS) fell 18.18% after announcing a capital raise linked to its Jenesys acquisition. The deal could combine artificial intelligence software with memory hardware, but shareholders who do not take part may own a smaller share of the company.
Defence and cyber security attract buyers
Defence work continued to support several companies. AML3D (ASX:AL3) reported 70% revenue growth to $12.5 million, its first half-year earnings before interest, tax, depreciation and amortisation profit, and a $29 million order book. Its shares rose 7.41% for the week. The company said US defence contracts and its UK expansion drove demand.
Acusensus (ASX:ACE) won a $1.7 million Victorian road safety camera trial. The system will test artificial intelligence cameras, but the trial will not issue fines at first. BluGlass (ASX:BLG) also secured US government and large corporate contracts, while 5G Networks (ASX:5GN) grew revenue 13% through enterprise and cyber security services. 5G Networks rose 16.36%, even though its annual loss widened to $12.2 million.
Infotrust offered the clearest balance-sheet improvement in the group. It used proceeds from a business sale to repay all bank debt and bought Catalyst Cyber to expand its work with federal customers. The benefit is simple: less money now goes towards loan repayments. The risk is that its earnings before interest, tax, depreciation and amortisation fell 20.3% as it invested for growth.
AI projects and data centres move from plans to spending
X2M Connect (ASX:X2M) reported 38% revenue growth and a smaller loss. It also signed a non-binding plan to help develop Queensland data centre sites ranging from 10 to 100 megawatts. A non-binding plan is not a guaranteed order, so the project still needs contracts and funding. The company’s reported weekly price was unchanged, although it had moved 50% since reopening from $0.001.
Vection Technologies (ASX:VR1) increased adjusted earnings before interest, tax, depreciation and amortisation by 596% to $3.8 million and produced positive operating cash flow for the first time. xReality Group (ASX:XRG) grew revenue 43% and doubled its sales pipeline to $80.4 million. These figures suggest stronger demand, but future sales still depend on customers signing and paying for contracts.
Deals helped some companies, while new shares worried others
Energy One (ASX:EOL) lifted recurring revenue 17% to $63.5 million and raised underlying profit before tax by 51%. It is also seeking approval for a $99.8 million purchase of Gas Management Services. BetMakers (ASX:BET) more than tripled adjusted earnings before interest, tax, depreciation and amortisation to $14.1 million and agreed to a takeover deal with Tabcorp. Neither stock gained during the week, showing that good results did not always lead to immediate buying.
Capital raising remained a key test. TALi Digital (ASX:TD1) fell 11.11% while seeking up to $3.3 million for its Datasphere purchase and product work. 4DS Memory’s proposed $5 million raise carries a similar concern: new shares can provide cash, but they reduce existing owners’ percentage of the business if those owners do not participate.
Several companies reported better sales but still lost money. archTIS (ASX:AR9) doubled revenue after buying Spirion, yet its loss rose to $16.3 million. RMA Global (ASX:RMY) grew revenue 7%, but its loss widened and the shares fell 13.04%. The contrast matters for beginners: sales growth is useful only if a company can eventually turn that sales growth into cash.
Bottom Line?
Defence contracts, cyber security work and data centre plans should provide news flow into FY27. Investors will need to check whether announced projects become paid orders, whether acquisitions improve profits, and whether companies can fund growth without repeatedly issuing new shares.
Questions in the middle?
- Will X2M turn its Queensland data centre framework into binding contracts and secure the money needed to build them?
- Can 4DS Memory show that combining Jenesys software with ReRAM hardware creates commercial sales before further capital is required?
- Will companies with stronger revenue, such as archTIS and RMA Global, reduce losses quickly enough to avoid more share issues?