The Atomo (ASX:AT1) share price has shot up 9%. Here’s why

The diagnostics company released its fourth-quarter business update today.
The post The Atomo (ASX:AT1) share price has shot up 9%. Here’s why appeared first on The Motley Fool Australia. –

The Atomo Diagnostics Ltd (ASX: AT1) share price has rocketed in opening trade today after the medical device company released its fourth-quarter results to the ASX.

At the time of writing, the Atomo share price is trading 9.30% higher at 23.5 cents apiece.

How did Atomo perform for the quarter?

The Atomo share price is soaring after the company reported a robust performance during the fourth quarter.

For the period ending 30 June, Atomo recorded cash receipts from customers of $717,000, bringing the full-year to $8.01 million. It’s worth noting that shortly after the close of Q4 FY21, a further $750,000 was received.

Sales represented a total of $6.7 million for the 2021 financial year, up by 25% when compared to FY20 ($5.4 million).

Atomo ended the quarter with a cash balance of $17.95 million.

Pleasingly, the company is expecting sales to expand rapidly in FY22, with key multi-year agreements secured with Viatris and Unitaid. HIV self-testing kits – designed and manufactured by Atomo – will be sent to 135 low and middle-income countries.

During late in the fourth quarter, the company received an initial order of 250,000 units under the Unitaid purchasing program. These products have since been shipped and delivered, with the majority of the order to be fulfilled in Q1 FY22.

To support the large order and potential future orders, Atomo has expanded operations at its South African facility. This includes additional assembly and packaging lines, as well as hiring and training further staff.

Across in the United States market, Atomo revealed that discussions with Access Bio were ongoing in relation to delivering its COVID-19 antibody test kits. Previously, Access Bio ordered 260,000 devices from Atomo, in part of the take-or-pay commitment of 2 million units by 30 September.

In Australia, interest has soared regarding Atomo’s COVID-19 rapid tests. The company has engaged with the Australian Aged Care market to develop its first aged care COVID-19 rapid antigen screening program.

Atomo share price summary

Despite the positive turn of events, Atomo shares have gradually trekked lower in the past 12 months, posting a 44% loss. In 2021 alone, the company’s share price is down around 30%.

Atomo has a market capitalisation of roughly $87.8 million, with more than 408 million shares on its registry.

The post The Atomo (ASX:AT1) share price has shot up 9%. Here’s why appeared first on The Motley Fool Australia.

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Here’s why the Atomo (ASX:AT1) share price is soaring 10%

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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