Universal Biosensors, Inc. Commentary on FY 2017 Universal...

Universal Biosensors, Inc.
Commentary on FY 2017
Universal Biosensors, Inc. (ASX: UBI) has today released its cash flow report (ASX Appendix 4C) for the quarter ending 31 December 2017. Unless otherwise noted, all references to “$” are references to Australian dollars.
Highlights
• UBI’s cash on hand is $26.26m as at 31 December 2017.
• Generates positive cash flows for two consecutive years.
• Quarterly Service Fee’s (QSF’s) for the year increased 12% to $19.99m compared to prior comparable period (FY 2016).
• Product revenues from the supply of the Xprecia Stride™ PT-INR test strips to Siemens were $4.07m for the year.
Quarterly Service Fees
QSF generated from LifeScan’s OneTouch Verio® blood glucose test strips for the 4th quarter of FY 2017 was $4.26m and remained flat when compared to the prior comparable period (Q4 2016) and up 12% to $19.99m in FY 2017 when compared to FY 2016.
Siemens product revenue
Revenue from the sale of Xprecia Stride™ PT-INR test strips was $4.07m for FY 2017 up $3.48m when compared to FY 2016.
As foreshadowed, Q4 2017 sales were insignificant as management believe a portion of strips sold in prior quarters represented customer inventory build-up to seed the supply chain. Management expects the PT-INR test strip volume to remain volatile as is representative of a new product entrant within our industry.