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- Video technology specialist Atomos (AMS) announces increased revenue and earnings for the first half of the 2022 financial year, though net profits took a dip
- Over the six months to the end of September, Atomos pocketed $40.9 million in revenue — 24.7 per cent more than the $32.8 million posted over the same time period the year before
- Gross profit grew to $19.3 million for the half-year, but higher spending on items such as R&D and advertising saw net profit after tax fall 82 per cent to $321,000
- Still, Atomos reiterates its full-year revenue guidance of more than $95 million and full-year EBITDA guidance of between 12 and 15 per cent, with new products to drive growth
- Shares in Atomos were down 2.79 per cent to 87 cents each at 1:31 pm AEDT
Video technology specialist Atomos (AMS) has dipped in afternoon trade despite announcing increased revenue and earnings for the first half of the 2022 financial year.
Over the six months to the end of September, Atomos pocketed $40.9 million in revenue — 24.7 per cent more than the $32.8 million posted over the same time period the year before.
With Atomos’ cost of sales coming in at $21.6 million for the half-year, gross profit for the first half of 2022 was $19.3 million compared to $14.8 million over the previous corresponding period.
Moreover, Atomos tabled $3.2 million Pro-forma earnings before interest, tax, depreciation, and amortisation (EBITDA) over the first half of FY22 compared to the $2.4 million over the first half of FY21.
The company said the surge in revenue was driven by strong demand for its core video creation products, though there was particular demand for the products launched late during the 2021 financial year. Atomos said these newer products account for 28 per cent of all sales during the first half of FY22.
However, it’s important to note that while the company grew its gross profit, it also spent significantly more money on business elements like research and development, advertising and marketing, and distribution.
While much of this can be viewed as a type of investment expense, it means Atomos’ net profit after tax actually fell by some 82 per cent to $321,000 for the half-year.
Nevertheless, Atomos CEO Estelle McGechie said today’s stats were record results for the company.
“Atomos again delivered strong growth in revenue and earnings despite challenges in the global supply chain,” Ms McGechie said.
“This was achieved whilst continuing to invest in our next-generation technologies and products as well as marketing and talent to drive growth and scalability.”
Looking ahead, Atomos said it was planning to launch several new products over the coming months through its new ‘Series 2′ tech platform. This platform is designed to improve connectivity between devices and allow for more software and cloud-based solutions to be integrated into Atomos’ video-making technology.
Atomos said it was expecting its new product launches to drive sales growth for the second half of the year, reiterating a full-year revenue guidance of more than $95 million and full-year EBITDA guidance of between 12 and 15 per cent.
“As we prepare to launch our new Series 2 products, video has never been more pervasive, and we sit at the centre of this world,” Ms McGechie said.
“As we begin to execute on our strategy of offering cloud-based workflows for our customers and increasing the number of software applications we offer, the future is extremely exciting.”
Shares in Atomos were down 2.79 per cent to 87 cents each at 1:31 pm AEDT. The company has a $192.37 million market cap.
