I thought the call was very positive in terms of each vertical is ramping up quite significantly. On the MEMs side we seem to be picking up new customers based on the Abiomed success. Ralph mentioned the micro mirror device which is aimed at the autonomous vehicle market. He then mentioned at the end of the call that he expects revenues from this segment in the FY 2020. Organ on a Chip revenues also FY 2020.
Being on the cover of National Geographic seems to have also meant more incoming enquiries.
The second half of the year will show substantial revenue growth as we become cashflow positive which is what every start up company listed on the ASX aspires to. There are not many companies listed on the ASX in this position and certainly not with 55% gross margins.
I think the major issue here is the working capital position.. At first glance of the 4C and noticing US$449k left in the bank would normally mean we are cum cap raise. Ralph and the CFO explained why the balance was so low on that particular date of 31 December and the substantial revenues that have since come in plus the first drawdown of the A$3 mil Tymleo factoring facility plus other financing bits and pieces they are working on.. They seem to be confident that working capital can be managed quite well and don't intend to dilute the shareholder base anymore.
Nanotron is now fully paid for and over the next year will appear to be a very fortunate and opportunistic buy just on the Voetis contract alone. The tag business is a huge growth area. Voetis have 3000 sales people in the USA alone running around promoting it from early Jan this year.
We will also totally disrupt the mining industry with our location awareness tags. By the end of 2020 the tag will be able to detect any dangerous gasses in the mines and replacing expensive archaic and grossly inaccurate technology that was developed in the 1960's. Ralph has rejigged this business so that the we don't go through third party integrators anymore. We now deal direct with the mines. This will mean substantial increased profit margins with an ongoing SAAS based model.
Revenues of US$11 mil this FY and I expect in excess of US$20 mil next year.
Sensera is a very exciting business on so many levels. Unfortunately not many people know about it. But there in lies the opportunity.
