In This Article:
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Revenue: $93.6 million, up 18% over the prior corresponding period.
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Revenue Growth Guidance: Increased from 8-12% to 11-14% for the full year.
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North American Installed Base Growth: 940 units added, totaling over 31,000 units.
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European Revenue: Grew 37% to $5.9 million compared to PCP.
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Gross Margin: 78.5%, improved from 76.3% in the second half of FY24.
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Operating Profit Before Tax: $10.9 million, up 124% from the prior period.
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Net Profit: $9.8 million, 58% higher than the first half of FY24.
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Cash Flow: Generated $13.8 million, with a cash balance of $144.5 million.
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Capital Revenue: Grew 11% to $22.7 million.
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Consumables and Service Revenue: Grew 20% to $62 million.
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Operating Expenses: $66.7 million, up 10% versus revenue growth of 18%.
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R&D Expense: Reduced from 20% to 17% of revenue.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nanosonics Ltd (NNCSF) reported a strong start to the year with first-half revenue of $93.6 million, up 18% compared to the prior corresponding period.
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The company increased its full-year revenue growth guidance from 8-12% to 11-14%, with potential for 13-16% growth due to favorable FX rates.
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North American business continues to perform well, with a significant increase in the installed base and strong growth in consumables and service revenue.
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The company is expanding its infrastructure in North America to commence consumables manufacturing, which is expected to bring sustainability benefits and reduce exposure to tariffs.
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Nanosonics Ltd (NNCSF) reported a strong profitability in the Trophon-only business, with profit before tax of $25.6 million and operating leverage improving from 23% to 27%.
Negative Points
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The new installed base in the European region was slower than anticipated in the first half, with only 70 units installed.
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The company is facing challenges in Japan with guidelines still not in place, although early adopter sales are increasing.
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Operating expenses increased by 10% compared to the prior corresponding period, driven by ERP implementation costs and inflationary staffing costs.
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The company continues to face regulatory hurdles with the FDA's de novo review process for the Chorus system, delaying its commercialization.
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Despite strong cash flow and a hefty cash balance, Nanosonics Ltd (NNCSF) does not currently pay dividends, which may be a concern for some investors.
Q & A Highlights
Q: Can you provide more details on the growth of consumables and service revenue, and how should we view the service opportunity in the coming years? A: Michael Kavanagh, CEO: The growth in consumables and service revenue is driven by several factors, including core disinfectant consumables and the ecosystem of wipes and probe covers. Service revenue, which grew over 20%, is driven by new installations and upgrades. Approximately 55-60% of customers opt for service contracts, and upgrades present a significant opportunity as customers switch from GE Healthcare to Nanosonics for service contracts.