The Uscom (ASX: UMC) share price is up 10% after the company announced strong trading results for the first half of FY21
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Medical device manufacturer Uscom Ltd (ASX: UCM) has today announced a significant increase in its sales and profits for the first 5 months of FY21.
The Uscom share price lifted by 10% after the announcement, and is currently trading at 17.5 cents.
Strong first-half so far
The company’s un-audited accounts shows significant increase in total revenue, profit, and cash inflow compared with the first 6 months of FY20.
For the first 5 months of trading, Uscom says its sales revenue was $2.01 million, up by 196% from the previous corresponding period. Total revenue of $2.26 million, up by 135%.
Profit for the 5 months was $0.18 million, which was an improvement from a loss of $1.5 million.
Meanwhile operating cash inflow for the 5 months was $0.21 million, which increased from an outflow of $0.78 million after correcting for the capital raising of $1.05 million in November 2020.
Surge in unit orders
At the outset of the COVID-19 pandemic in February, Uscom received a material increase in demand for its USCOM 1A devices from China. As a result, unit orders for the first 5 weeks of 2020 were up 124% compared to the first 2 months of 2019.
Following those orders, the Uscom share price spiked to its 52-week high of 53 cents – a level it has yet to reach again since.
Recognition in China
Last week, Uscom announced that the Chinese government had listed its subsidiary in China, Uscom China, as a National High Technology Enterprise.
The company said the listing recognised Uscom’s achievements in research and development, innovation, and significant findings in high-tech fields.
Furthermore, the company said it expected 5 five new products to receive Chinese regulatory approval and enter the market over the next 12 months, with another 2 in the pipeline.
About the Uscom share price
The Uscom share price started the year at 12 cents, spiked to 53 cents in February and has since declined to its current level at around 18 cents. It commands a market cap of $25 million.
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Motley Fool contributor Eddy Sunarto 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.
The post Why the Uscom (ASX:UMC) share price gained 10% today appeared first on The Motley Fool Australia.