Whilst the report is light on narrative, if you split out Revenue (excl. R&D and Govt Grants) for H2 2020 and then annualise, the run-rate entering FY2021 is $ 1.75 m. Equates to a lift of 32.5 % vs the FY number. The picture even gets rosier when you consider the Deferred Revenue of $ 811 K, near double that reported in the 1st half.
Whilst Operating Expenses (excl R&D, Share based expenses and Other) show the run-rate lifting 22% (again H2 annualised), it is clear to see what an impact a 7 digit contract award will have. With a gross margin provisionally set at 88.9% ( single ref point on Product Manufacturing & Operating Costs @ $146 K), increased sales will quickly turn this business to being highly profitable.
Exciting hold.
Rokewa
3DP Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
