Join our daily newsletter At The Bell to receive exclusive market insights
- Micro-X has told investors it is cash-flow positive for the September quarter
- While sales for its Nano products were slower than expected to start, the company is set to launch its military Rover product in 2020
- The company creates mobile X-ray units for both the health care and military defence sectors
- Shares in Micro-X are up 3.23 per cent today, closing at 32 cents each
Micro-X has announced its cash-flow positive for the September quarter.
The X-ray imagining company has cash inflows of $5 million with outflows coming in lower than expected at just $4 million — leaving overall net cash inflows sitting at $1 million for the quarter.
Micro-X says it was expecting cash outflows of $4.21 million for the quarter, but spending cuts helped ease this figure slightly.
Company Managing Director Peter Rowland said the company’s focus has recently pivoted to capitalising on its two lead products: Nano and Rover.
“We appreciate that early sales of the Nano have not been as fast as we had hoped, including the one off effects of changing tube manufacture this quarter, but this is not unusual when delivering a breakthrough new technology product into a mature market,” Peter said regarding the company’s mobile X-ray unit.
The Nano product is a lightweight, fully mobile X-ray unit for use in the medical sector.
Rover, on the other hand, is a similar mobile X-ray but was designed for deployed military hospitals.
“The interest from the U.S. military to gain access to the Rover earlier is also pleasing and the ability to deliver an initial Rover product for sale from around mid-2020 means we will then have two commercial products in revenue within nine months from now, or six months earlier than planned,” Peter explained.
“We remain conscious of our financial resources as we move towards increasing sales within the next 12 months, so the Board has taken the prudent decision to trim some non-core expenditure, saving over $3.1m this financial year and more in coming years,” he said.
Looking forward, the company expected cash expenditure to hit nearly $5 million in the coming quarter, but said this will be offset by research and development tax rebates, customer receipts from sales, and a $1 million drawdown.
Shares in Micro-X are up 3.23 per cent today, closing at 32 cents each in a $52.81 million market cap.
