Alcidion (ASX:ALC) share price storms higher on update Daniel...

Alcidion (ASX:ALC) share price storms higher on update
Daniel Ewing | October 27, 2020 1:04pm
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Today, the Alcidion Group Ltd (ASX: ALC)share price is storming higher as the company released a positive quarterly report to the market. Shares in the e-health provider are rising strongly despite the sharp sell off in the All Ordinaries Index(ASX: XAO). At the time of writing, the Alcidion share price is trading 4.17% higher at 12.5 cents.

Strong start to the year
Alcidion has posted very strong numbers despite the ongoing impacts of the global pandemic. The healthcare small capannounced $4.8 million in new contracted revenue. This number is up 30% on the previous quarter’s results and up a huge 92% from the prior corresponding period (pcp). Despite this sizeable increase in revenue, the Alcidion share price has slumped 40% over the past year.

As a result of the company’s surging revenue during the quarter, total contracted revenue to be realised in FY2021 has also increased. Alcidion reported this number stands at $14.7 million. Furthermore, the company reported strong cash receipts from customers of $6.4 million, a 34% increase on a year ago.

Despite the rise in income, Alcidion still reported net cash outflows of $1.2 million. However, it should be noted that this number reflects ongoing investment in growing the business and was in line with the company’s expectations.

Alcidion had cash reserves of $14.7 million at the end of the first quarter.

Comments
Alcidion Managing Director, Kate Quirk, was pleased with the results, stating:

I am pleased with the strong start we have made to the new financial year. It has been an important sales quarter in Australia, where we signed initial contracts with significant potential for future expansion.

We continue to scale up our sales, product implementation and marketing capabilities to accelerate growth in all markets, as healthcare undergoes unprecedented digital transformation. Investment in these areas will remain our focus throughout the financial year to support further growth and firmly establish Alcidion as a leading provider of digital healthcare solutions in this rapidly growing market.

About the Alcidion share price
Alcidion is a Melbourne-based company that is focused on developing a range of software products for use in the healthcare sector. Some of the company’s most prominent brands are Miya and Patientrack. These platforms enable medical professionals to better manage their time and patients.

As at October 2020, the company’s platforms are utilised by more than 65,000 users across over 300 hospitals in Australia, New Zealand and the United Kingdom.

Despite strong revenue growth over the last couple of years, the Alcidion share price has been on a downward trend since reaching all time highs of 30 cents in September last year. Shareholders will be hoping the company’s ongoing revenue growth will help drive a turnaround in the Alcidion share price.