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Volpara increases half-year revenue by 197 per cent

Health Care
ASX:VHT      MCAP $291.2M
20 November 2019 15:15 (AEST)

Medical technology company Volpara has increased its half-year revenue by 197 per cent to sit at NZ$6.8 million (AUD$6.4 million).

Highlights during the half-year include the successful acquisition of Seattle-based MRS Systems for US$14.6 million (AUD$18 million) and the raise of AUD$55 million in capital during the first quarter.

Following the successful capital raise and acquisition, the Board made a deliberate decision to continue to invest in the business by increasing the sales, marketing and customer capability.

This bought additional resources into engineering for research and development, as well as strengthening the executive team with new roles in operations, people and customer success.

The combined team now has the resources and product suite to go on and capture market share which has been successful to date.

The integration of MRS Systems into Volpara has provided the company with a full suite of breast-screening products and an enhanced database that can now be optimised moving forward.

It will enable Volpara to increase the number of women in the key U.S. market who have a product used during breast cancer treatment.

“MRS Systems has been successfully integrated into Volpara and we are already seeing our hard work translate into increased customer numbers,” Volpara CEO Dr Ralph Highnam said.

“We can now optimise the benefits that MRS has brought to Volpara, which includes a bolstered database. We come to the table with a stronger offering to help our patients beat cancer,” he added.

The company also saw a 215 per cent increase in gross profit to NZ$6.1 million (AUD$5.7 million) and subscription revenue up 148 per cent to NZ$5.2 million (AUD$4.8 million).

“This past half-year has positioned us well financially for our next stage of growth. We have funds from a successful capital raise, a more solid cash position, stronger revenue streams and a full suite of breast-screening products,” Dr Ralph said.

However, loss after tax was up 55 per cent on the previous corresponding period, which includes one-off acquisition costs of NZ$620,000 (AUD$583,000) and other material non-cash expenses.

Volpara now remains on track to meet its mid-range forecast for ARR (annual recurring revenue) for the year of NZ$17.1 million (AUS$16.1 million).

Volpara is down just over five per cent today with shares trading for $1.99 at 1:28 pm AEDT.

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