Q3FY23 comparisons/comments/ramblings. Have added Volpara into...

Q3FY23 comparisons/comments/ramblings. Have added Volpara into the mix.

RECEIPTS

Nice to see an improvement on the previous March quarter. Commentary suggests they should hit $100M revenue for the current FY. Trendline shows MDR and VHT are the two with increasing revenues. ALC flat and M7T trending down.

COSTS

$37.5M outgoings for one quarter!! They do state people costs were high with bonuses paid to US staff and Guildlink. But $19M attributed to Product manufacturing and operating costs, that's big. Why? That bar compared to others looks ugly MDR Management. It's 3x more than ALC with ~$12M spent this quarter. If the 'seasonality' is big revenues in the December quarter, followed by big outgoings the following quarter, they just cancel each other out. Looking back, the market showed some caution with the December numbers, as there wasn't a supporting rise in share price, perhaps anticipating flat revenues and large expenditure.

CASH

I've returned the December cash balance to reflect the total, knowing there's still $15M debt which obviously couldn't have been paid down in March as the $33M we had is now $20M. Trendline shows MDR and M7T increasing their cash, ALC and VHT reducing their cash quarter by quarter.

The summary table above shows M7T had a spike in share price but has come back down, with revenues trending down, costs increasing slightly with cash largely stable. ALC share price being punished. Silverlink hasn't delivered as quickly as holders had hoped. ALC have flat revenues, increasing costs and cash is eroding. VHT share price rising with revenues up, costs coming down the last 2 quarters but cash is drying up. The market reacted positively to MDRs December quarter up to 30c but has lost 33% with todays low nearing 20c. MDR needs a strong finish with $25M+ receipts again with reduced costs of around $25M to adjust the trendlines into FY24 in the right direction.

There's other orgs out there like COO ($20M MC) having some (legal) wins but the market going 'meh' and anomalies like 4DX who is now $340M MC based on one US hospital taking up their SaaS scanning technology. There's also some uncertainty with the Government causing some waves with allowing scripts to be dispensed with 60 days of medicine, instead of 30.

There may not be a pop with the June quarter either, but this dot point has me hanging on. Perhaps it's at this time we truly see a shift to CFP (as has been promised) regardless of what is spent per quarter.

• The current US pipeline is materially above the previous corresponding period and reflects diversification from traditional to digital revenue, placing the company in a strong position to capitalise during key selling periods of Q1 and Q2 FY24

This is also interesting news and I don't believe these folk come cheap, so hope their experience can be used to deliver new revenue streams.

• Two key appointments have been made this quarter with Kaley Simon as SVP of Product and Sen Deng as SVP of Analytics, who will drive product innovation and analytics.