- Meditech company Uscom (UCM) has slumped today despite releasing some record financial figures for the first half of the 2020 calendar year
- For the half-year, cash receipts were up 84 per cent and Uscom managed to hold on to a marginal profit
- The result was supported by growth in quarterly sales and cash receipts
- Executive Chairman Professor Rob Phillips said the quarterly result reaffirms Uscom's global strategy during a tough half-year
- However, it seems investors were expecting more from a health care company in the midst of the COVID-19 pandemic
- Despite the positive financial results, Uscom shares declined by 20 per cent today to close worth 22 cents each
Meditech company Uscom (UCM) has slumped today despite releasing some record financial figures for the first half of the 2020 calendar year.
The company released its June quarterly report today in which it included some key financial metrics for the first six months of the year. Notable, the half-year was overall cash flow positive by $500,000 compared to Uscom's $970,000 cash loss over the same time period last year.
For the half-year, cash receipts were up by 84 per cent, coming in at $3.02 million compared to last year's $1.64 million. Importantly, Uscom was able to hold on to a $140,000 profit for the half-year compared to the first half of 2019's $640,000 loss.
Looking specifically at the June 2020 quarter, however, Uscom was cashflow negative by roughly $348,000. Still, the quarter saw a 29 per cent bump to cash receipts compared to this time last year, and a marginal seven per cent boost to sales.
Uscom's Chinese arm, which was launched in the first quarter of the year, has been profitable since its establishment. Over the June quarter, Uscom China pulled in $3 million in cash receipts.
Uscom Founder Executive Chairman Professor Rob Phillips said the company's global strategy has been proven during a half-year ravaged by the COVID-19 pandemic.
"Uscom reported record sales, receipts, cash flow and profit reflecting the success of H1 global changes in operations and the success of Uscom China in H2," Rob commented.
"H2 receipts, if annualised for the full year, would result in receipts of roughly $6 million despite operations in the once in a generation COVID pandemic," he added.
"While the next few quarters may be challenging, China, our major market, is already rebounding strongly, and Uscom China is ideally leveraged into this recovery and experiencing increasing activity," he said.
Uscom's key ultrasound products include its USCOM 1A, BP+, and SpiroSonic devices. The products are designed to help with the treatment and diagnosis of cardiovascular and pulmonary diseases.
Interestingly, it seems Uscom has fallen victim to market expectations today. The company's share price has suffered in spite of the strong figures, with investors seemingly having expected higher sales numbers as the world of healthcare boomed in the face of the coronavirus.
In such an unstable and fast-paced market, it seems Uscom's steady growth was not enough to satisfy the market. The company's share price is down 20 per cent today with shares closing worth 22 cents each,