The National Association of Broadcasters (NAB) trade show in Las Vegas. Source: Atomos
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Atomos (AMS) revises its FY22 revenue guidance following slower than expected sales in its first quarter
  • In its H1 FY22 results, AMS forecast full year revenue of more than $95 million however, this has been downgraded to between $80 to $90 million
  • EBITDA was also pitted at between 12 and 15 per cent however the company now expects between 6 and 8 per cent
  • While Interim CEO Trevor Elbourne says the revision is disappointing, the company has received multiple awards for its new products and expects a strong Q4
  • Company shares were down 43.3 per cent, trading at 34 cents

Atomos (AMS) revises its FY22 revenue guidance following slower than expected sales in its first quarter.

The video technology company has downgraded its expected revenue for this financial to between $80 to $90 million, and earnings before interest, tax, depreciation and amortisation (EBITDA) of between six and eight per cent.

In its first half results announcement in February, the company had pitted revenue for FY22 at more than $95 million and said EBITDA was on track to reach between 12 and 15 per cent.

Atomos blamed the disappointing sales seen over the first four months of the calendar year on a change to its marketing approach and lower promotional activity.

It said this approach was corrected in April and management has implemented new strategies which it hopes will result in an outperformance of the revised revenue forecast.

COVID lockdowns in Shanghai haven’t helped the situation, with the short-term production schedule for a yet-to-be-announced product likely to be impacted. Atomos planned for this product to be shipped next month, and has factored the delay into its revised guidance.

“It is extremely disappointing to be revising our FY22 guidance, particularly considering the strong sales results achieved during 1H FY22,” Interim CEO Trevor Elbourne said.

However, the company has launched new product and cloud services which it said have been met with “exceptional” reviews, and multiple awards at the National Association of Broadcasters trade show in Las Vegas.

“The response we’ve had at NAB this year from all quarters has been so positive that I would mark this the most successful NAB for Atomos that I can recall,” Mr Elbourne commented.

“With these new products in market, and the appropriate promotional levers reactivated, we expect a strong Q4 which will ensure that we maximise the sales of our physical devices and in turn, adoption of the new connected ecosystem.”

For the 2023 financial year, the company has confirmed its previous annual recurring revenue guidance of $3 million and expects double-digits EBITDA margins.

Company shares were down 43.3 per cent, trading at 34 cents at 1:49 pm AEST.

AMS by the numbers
More From The Market Herald

" Wiseway Group (ASX:WWG) launches $4m entitlement offer

Wiseway Group (ASX:WWG) has launched a four to 25 pro-rata non-renounceable entitlement offer to raise up…
Pursuit Minerals (ASX:PUR) - Managing Director, Bob Affleck

" Pursuit Minerals (ASX:PUR) sells Scandinavian projects for $3m

Pursuit Minerals (ASX:PUR) has settled the sale of its nickel and vanadium projects in Norway, Sweden…
Payright (ASX:PYR) - Joint CEOs, Piers Redward (left) and Myles Redward (right)

" Payright (ASX:PYR) settles “transformational” funding package to pursue growth

Payright (ASX:PYR) completes its settlement of funding package, comprising a $125 million warehouse facility led by…
X2M Connect (ASX:X2M) - Chief Operating Officer, Keith Jelley

" X2M Connect (ASX:X2M) wins three contracts in South Korea

X2M Connect (ASX:X2M) has won three new contracts in South Korea for remote water monitoring and…