- Atomos' (AMS) share price is up following a pleasing report for the half year ended December 31 2019
- Atomos is a video tech company that develops monitor recorder products for content creators
- Revenue was up 35 per cent compared to the previous period, sitting at $32.6 million
- Gross profit and EBITDA both increased by over 30 per cent since the last period, however, operational expenses also increased
- In the first half of last year, Atomos released 7 products which have attracted sales and support from key providers in the industry
- Unfortunately, the release of new products has been delayed due to factory closures amid the COVID-19 outbreak
- However, Atomos expects the factories will be fully operational shortly and remains confident there'll be no material impact
- Atomos is up 9.40 per cent with shares trading for $1.19 each
Atomos' (AMS) share price is up following a pleasing report for the half-year ended December 31 2019.
Atomos is a global video technology company that designs and develops monitor recorder products to enhance video content creation.
Since its foundation over a decade ago, Atomos has established relationships with key providers in the industry. These include Apple, Sony, Adobe, Canon, Panasonic and Nikon.
The company continued to build on its strong revenue growth with a 35 per cent increase on the prior corresponding period. For the 1H20 period, Atomos achieved $32.6 million in revenue compared to $24.2 million in 1H19.
Gross profit increased by 32 per cent from $10.5 million in 1H19 to $13.9 million in 1H20 and pro forma EBITDA (earnings before interest, taxes, depreciation and amortisation) increased by 35 per cent from $700,000 to $1 million.
Operating expenses for the half-year also increased however by around 30 per cent from $8 million in 1H19 to $10.5 million.
"We are pleased with the continued growth in revenue in the first half, particularly as there were no new product launches during the period," CEO Jeromy Young said.
Atomos has a suite of video recording and video monitor devices. Sales from this range performed better than the company expected however, total product sales were in-line with expectations as a result of the timing of new product launches.
By June 2019, the video tech company launched seven new monitor-recorders, including the four new NEON products, since its IPO in December 2018.
The NEON products are HDR cinema monitor-recorders that are targeted at serious content creators and filmmakers and are priced to match. These retail for anywhere between US$3,999 - $16,999 (A$6,000 - 26,000).
Demand for Atomos' Ninja V HDR monitor recorder was strong this period. This demand was supported by global camera companies that are choosing RAW over HDMI capability. Therefore, this favours Atomos' products that support Apple ProRes and ProRes RAW.
In December, Atomos acquired U.K.-based Timecode Systems (TCS). TCS' wireless synchronisation technology has been integrated into the Atomos ecosystem to complement its products.
Distribution integration and sales promotion are expected after the NAB Show in Las Vegas in April.
"We are excited to enable growth through increased deployment into video and audio devices with TCS. We are also very pleased to see Apple ProRes RAW support announced for Adobe and Avid software this half," Jeromy added.
The company has reported there will be new products released however this has been delayed due to factory closures as a result of COVID-19 (coronavirus).
The principle factory reopened about 10 days ago and the company expects its other two factory suppliers will operate shortly and be fully operational before the end of the 2020 financial year.
Despite this, management assures it will maintain strong revenue growth for its end of year results as the short-term supply chain disruptions don't reflect the long-term demand of its products.
Atomos is up 9.40 per cent with shares trading for $1.19 each at 3:12 pm AEDT.