Can NAN Weather The Storm?, page-6

"Nanosonics Limited (ASX:NAN) Revenue up by 19% for first half 2020

An ASX listed health care sector player Nanosonics Limited is into the development of unique automated high-level disinfection device and is an innovator in offering high-level disinfection for ultrasound probes.

The Company’s unique, automated trophon® EPR high-level disinfection device is a comprehensive solution for reducing the spread of health care acquired diseases by lowering the contamination among the patients.

Revenue for first half 2020, up by 19%-

• For the first half of 2020, Nanosonics recorded sales of ~$48.5 million, increased by 19% on the prior corresponding period (pcp);
• Continued strong global installed base growth, up by 17% in the past 12 months and 8% in the last six months to ~22,500 units;
• The Company reported operating profit before tax to be ~$6.7 million, compared to $11.0 million in pcp;
• Free cash flow for the half year period was $10.0 million compared to $1.6 million on pcp;
• Cash and cash equivalents of the company increased $9.8 million to $82.0 million, providing a strong foundation for constant investment in growth.
• R&D activities continued to grow with the investment of $6.8 million, up 24% on prior corresponding period and 15% on the preceding half period.

Substantial investments of $6.8 million are being made in research and development rose by 15% on the previous half and up 24% on pcp-

Outlook-

• Continued growth in installed base in North America with the financial year 2020 adoption parallel to FY19;
• NAN mentioned that the continued investment in growth with operating expenses in the second half is anticipated to be ~$36 million resulting in full year operating expenses of in between $67 to $68 million including ~$15 million in research and development.

It is noteworthy to mention that the Company is actively considering and monitoring potential risks associated with the recent coronavirus outbreak, and as of now, there are no recorded no material impacts to the business operations.

Stock Information-

On 16 March 2020, NAN last traded at $5.42, down by 10.265%, with a market cap of nearly $1.82 billion. NAN has ~300.54 million shares outstanding, and its fifty-two-weeks high and low price was spotted at $7.730 and $3.985, respectively. "