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- Meditech developer CardieX (CDX) has announced its best half-year of sales in five years despite ongoing global COVID-19 woes over 2020
- The company said for the three months to the end of December 2020, it achieved sales growth of 29 per cent
- This bumps sales growth of CardieX’s XCEL and Oscar 2 blood pressure devices up 30 per cent for the six months to the end of December compared to the year before
- The company recently raised over $3.2 million in a share purchase plan and bolstered its executive team
- As such, CardieX says it is well-placed for the upcoming launch of two important products this year
- Nevertheless, with around $3.3 million in the bank and $545,000 in net cash outflows for the quarter, CardieX has enough funding to last six financial quarters at current spending levels
- Shares in CardieX are in a trading suspension but last closed at 8.4 cents each on Friday, January 29
Meditech developer CardieX (CDX) has announced its best half-year of sales in five years despite ongoing global COVID-19 woes over 2020.
The company told investors in its latest quarterly report it achieved sales growth of 29 per cent for the three months to the end of December 2020 compared to the same time period the year before.
For the six months to the end of December, sales of CardieX’s XCEL and Oscar 2 devices grew 30 per cent on the year before on a constant currency basis. Yet, even when adjusting for the recent strength of the Australian dollar, sales are still up 24 per cent for the half-year.
Both the XCEL and Oscar 2 devices are blood pressure monitoring appliances.
CardieX said the solid half-year of sales sets the company up nicely for new product and market launches in 2021.
What’s coming up?
Company management confirmed is on track for a string of new product launches over the next two years, among which includes a smartwatch designed to track important health analytics and the Pulse product, which is a home-based heart health vital signs monitoring system.
The smartwatch will be based on CardieX partner company ATCOR’s “Arty” platform and is being created in partnership with Google-backed Mobvoi. Meanwhile, the Pulse product will be based on ATCOR’s U.S. Food and Drug Administration (FDA)-cleared SphygmoCor tech.
According to CardieX, SphymoCor is the only existing FDA-cleared tech in the world that can produce a full-feature arterial waveform in adults. This identifies important cardiovascular diagnostics for heart disorders.
As such, the Pulse device will be able to provide crucial cardiovascular diagnostics at home that are typically only available through specialist clinicians.
CardieX said pre-orders for all of its new devices will begin soon, with shareholders having priority access to pre-ordering.
The company said with a recently-completed share purchase plan, strong sales growth, and a bolstered executive team, it is in a strong position to capitalise from its new product launches.
What’s the cash position like?
For all the strong sales, however, CardieX is currently still spending more cash than it is earning.
Taking a look at the company’s financial report, CardieX made $1.1 million in customer receipts but spent $2.1 million on operating activities over the December quarter.
This means even when including the $460,000 in government grants and tax incentives, CardieX still had net cash outflows of $545,000 for the quarter.
With roughly $3.3 million in available funding at the end of December, this means the company is able to last until around mid-2022 at current spending levels before it needs some extra cash.
It’s not yet certain how investors will react to today’s report given CDX shares are in a trading suspension. The ASX froze CardieX’s shares because the company was late to lodge today’s 4C report — meaning the suspension will likely lift soon now the report has been released.
Shares in CardieX last traded for 8.4 cents each on Friday, January 29.
