Volpara (ASX:VHT) share price on watch after Q2 trading update

The Volpara Health Technologies Ltd (ASX: VHT) share price will be on watch today following the release of its Q2 trading update.
The post Volpara (ASX:VHT) share price on watch after Q2 trading update appeared first on Motley Fool Australia. –

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The Volpara Health Technologies Ltd (ASX: VHT) share price will be on watch today following the company’s release of its Q2 trading update.

Let’s take a look and see how Volpara performed in the second-half of the year.

How did Volpara perform in Q2 FY21?

For the quarter ending 30 September, Volpara reported strong cash receipts from customers, despite the impacts of COVID-19. The NZ$4.7 million received in Q2 represented the fifth straight quarter of consistent sales greater than NZ$4.5 million.

Management noted material changes were minimal from the pandemic, highlighting the resilience of Volpara’s business model.

The company transitioned from a capital model to a software-as-a-service model for sales of its MRS patient management software. This resulted in a slight drop in cash receipts over the prior corresponding period, down 4%. However, for the half-year recorded, sales were 33% higher than H1FY20.

Most of the receipts have been attributed with the strong inflows from subscription customers, which increased 16% year on year in Q2FY21.

Net operating cash outflow totalled NZ$3.5 million for the quarter, less than originally forecasted. Volpara said despite the US dollar weakness, cash receipts continue to flow in and costs are carefully managed.

The company closed the quarter with a healthy cash balance of NZ$64.3 million.

Informal reports

Volpara responded to speculation about the United States Food and Drug Administration (FDA) regulations on breast density reporting being delayed. The company advised that it has no knowledge of the postponement and will update the market when appropriate.

What did the CEO say?

Volpara CEO, Dr Ralph Highnam, commented on the results. He said:

It has been a remarkable quarter. We’ve followed a key company value of ‘being bold.’ We’ve changed the way we do business and put digital marketing expert Katherine Singson in charge of our US commercial activities to tackle the implications of COVID-19 head on.

Despite the virus, we’ve maintained sales momentum and released key new software. We’re very pleased with our current situation, but we are fully aware that COVID-19 is still potentially disruptive to all businesses in any sector.

About the Volpara share price

The Volpara share price hasn’t moved much since hitting a multi-year low of 79 cents in March. Although having partially recovered to above 70%, shares in the med tech are still significantly off their 52-week high of $2.17.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Volpara (ASX:VHT) share price on watch after Q2 trading update appeared first on Motley Fool Australia.

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