Tech Quarterly Wrap: From jet engines to AI, five ASX stocks making moves

• Five ASX tech stocks report progress across AI, aerospace, energy, fintech and software during the September quarter
• 1414 Degrees advances its AI data centre ambitions while Aurora Labs secures its first US jet engine order
• Stakk delivers positive operating cash flow as Codeifai expands its global platform reach and Ovanti cuts costs

Special Report: Five ASX tech companies, five very different stories, and plenty for investors to chew over as the sector navigates a tricky market.

The September quarter was a tale of two tech markets.

The Nasdaq climbed 2.5% during the three-month period, but back home, ASX tech stocks slid 8% as investors got nervous about valuations.

Still, while Wall Street was busy arguing over AI’s trillion-dollar price tag, smaller Aussie tech companies were getting on with business.

Some landed their first overseas orders, others snapped up businesses or pushed their products onto global platforms.

And a few found themselves right in the middle of the AI infrastructure boom.

So, who’s actually making progress, and who’s still selling the dream?

Here’s how five ASX tech players fared during the quarter:

1414 Degrees (ASX:14D)

• Signed a Heads of Agreement for up to 1GW of AI data centre infrastructure
• Advanced its Aurora solar and battery project in South Australia
• SiNTL battery material delivered encouraging results in testing

1414 Degrees is finding itself in an interesting position.

The AI boom needs enormous amounts of electricity, and this South Australian technology company happens to be developing a rather large energy precinct near Port Augusta.

During the quarter, it signed a Heads of Agreement with an Australian data centre operator for the proposed staged development of up to 1GW of AI computing infrastructure at its Aurora Energy Precinct.

That’s a serious amount of potential computing capacity, although the agreement is still subject to further negotiations and development work.

The company is also seeking partners for an initial 140MW battery storage system and 70MW solar project, with indicative development costs of $350 million to $550 million.

After quarter-end, it secured full ownership of Aurora, simplifying the process of dealing with potential investors and customers.

And electricity infrastructure isn’t its only play.

Its SiNTL battery material, designed to improve lithium-ion battery performance, achieved approximately 550 milliamp-hours per gram over more than 640 charging cycles in testing, around 50% higher specific capacity than conventional graphite anodes.

A newer formulation reached approximately 600 mAh/g in early testing.

Partnerships with satellite and battery manufacturers are helping move the technology towards commercial evaluation, with a $1 million development program announced after quarter-end.

With $4.92 million in cash at September’s end, 1414 Degrees has several promising opportunities on the table.

Aurora Labs (ASX:A3D)

• Secured its first US engine order worth US$42,000 after quarter-end
• Achieved an important aerospace and defence quality certification
• Locked in commitments for a $6 million cap raise to support its next phase

Aurora Labs is discovering that making jet engines is one thing. Convincing the global defence industry to buy them is another game altogether.

The Perth-based company, which develops compact turbine engines for drones and other aircraft, made some useful progress on both fronts.

It secured AS9100D certification, a recognised quality standard that helps suppliers qualify for aerospace and defence contracts.

Think of it as getting through one of the industry’s toughest quality checks.

It doesn’t guarantee an order, but without the right credentials, plenty of customers won’t even let you through the door.

And the enquiries are starting to look more promising.

Aurora reported growing interest in its AU2 and AU4 engines, including discussions alongside European missile manufacturer MBDA.

After quarter-end, it secured its first US order, worth US$42,000, for three AU4 turbojet engines and integration services.

Not exactly a fortune, but a meaningful first step into the American market.

Aurora also secured commitments for a $6 million cap raise after quarter-end and is preparing to expand production, including through a government co-funded industrial 3D printer expected to be commissioned in early 2027.

The next challenge is turning all those customer enquiries and evaluation programs into repeat orders.

September-quarter customer receipts were $205,000, while operating cash outflow was $752,000, so commercial scale remains a work in progress.

Codeifai (ASX:CDE)

• Launched ConnectQR on Canva’s Apps Marketplace
• Added ProtectCode to AWS Marketplace and submitted AI assistant apps for review
• ConnectQR accounts climbed to 8,753 by 28 October

Codeifai has a pretty simple idea for growing its software business.

Rather than spending a fortune trying to convince customers to visit its website, why not put its products inside the platforms people already use?

That’s exactly what it did during the quarter, launching its ConnectQR app on Canva in September.

The software lets users create QR codes for things like menus, packaging and marketing materials, including codes that can be updated after printing.

After quarter-end, Codeifai also submitted ConnectQR apps for review by ChatGPT and Claude, while its ProtectCode product landed on Amazon’s AWS Marketplace.

ProtectCode helps businesses give individual products digital identities, making them easier to track and verify.

The AWS listing also lets enterprise customers buy the software through their existing Amazon cloud accounts.

The strategy is about getting more users without building an expensive sales operation.

ConnectQR had attracted 8,753 accounts by 28 October, up from 7,313 at the end of July.

Codeifai’s next challenge is convincing more of them to upgrade to paid subscriptions.

September-quarter customer receipts were $98,000, with operating cash outflow of $521,000 and closing cash of $376,000.

Ovanti (ASX:OVT)

• Slashed operating cash outflow by 90.9% to $491,096
• Customer receipts jumped 86.7% to $793,472
• Exited the buy now, pay later business to focus on banking technology

Ovanti has decided it’s time to stop chasing every opportunity and concentrate on what it already knows.

After reviewing its operations, the fintech company decided to exit BNPL globally and focus on iSentric, its established banking, payments and messaging technology business.

The financial numbers suggest the clean-up is making a difference.

September-quarter operating cash outflow shrank 90.9% to $491,096, compared with $5.41 million in June, while customer receipts climbed 86.7% to $793,472.

Some of that improvement reflects the absence of large one-off costs from the previous quarter, rather than simply a surge in business.

On the product front, its JuncturaX supply chain financing platform completed a successful proof of concept with a Malaysian anchor customer – with a commercial launch targeted for early 2027.

Ovanti also participated in central bank digital currency discussions in Nepal.

There was another development outside its core business.

A Malaysian court awarded its subsidiary iSentric approximately RM5.17 million, or $1.78 million, in a dispute involving two companies.

Ovanti ended September with $227,000 in cash.

For investors, the question now is whether the leaner business can convert its banking relationships and new technology projects into sustainable cash flow.

Stakk (ASX:SKK)

• Reported $16.1 million in unaudited pro-forma quarterly revenue
• Operating cash flow jumped 193.6% to a positive $731,000
• Completed its US-based ParaScript acquisition

Stakk had a pretty eventful quarter, and the headline number certainly grabbed attention.

The digital technology company reported $16.1 million in unaudited pro-forma revenue, helped by its acquisition of US-based ParaScript, a business specialising in AI-powered document processing.

ParaScript’s technology helps organisations automatically read, classify and extract information from documents.

Think of the mountain of paperwork handled by banks, insurers and other big businesses. Instead of paying people to sift through every page, AI can take on much of that repetitive work.

ParaScript contributed $9.26 million to the pro-forma revenue figure, while Stakk’s underlying business accounted for $6.82 million.

There was some encouraging news on the cash front too.

Net operating cash flow rose 193.6% from the previous quarter to a positive $731,000, marking a second consecutive quarter in the black.

Stakk finished September with $11.81 million in cash after completing the US$63 million ParaScript acquisition.

One important detail for investors: the $16.1 million revenue figure assumes both businesses were together for the full quarter, whereas statutory customer receipts of $7.68 million include ParaScript only from 14 September.

The December quarter will provide the first full three-month cash-flow picture of the enlarged business.

At Stockhead, we tell it like it is. While Aurora Labs, Stakk, Codeifai, Ovanti and 1414 Degrees are Stockhead advertisers, they did not sponsor this article.

This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decision.

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