Join our daily newsletter At The Bell to receive exclusive market insights
- Eyesight specialist Visioneering Technologies (VTI) has reported record quarterly financial figures for the September quarter of 2020
- Over the September quarter, Visioneering pulled in US$1.6 million (roughly A$2.3 million) in revenue
- While this is technically below the US$1.9 million (roughly A$2.6 million) made in the December quarter of 2019, the company the December result included a half-million-dollar stocking order
- Thus, when not accounting for this stocking order, the September revenue is technically a new record for Visioneering
- The result was underpinned by US$1.9 million (roughly A$2.6 million) in customer receipts for the quarter, despite serious spending cuts in light of COVID-19
- As such, like with its revenue, Visioneering said it technically went cashflow-positive for the quarter if it excludes spending on inventory
- Shares in the company are trading almost 13 per cent higher this afternoon and currently worth 3.5 cents each
Eyesight specialist Visioneering Technologies (VTI) has reported record quarterly financial figures this morning for the September quarter of 2020.
While the results are unaudited, Visioneering said they are the best the company has ever reported.
Technical revenue record
Net revenue for the quarter came in at US$1.6 million for the quarter (around A$2.3 million), which is an increase of 139 per cent on the June 2020 quarter and 11 per cent on the same time period last year.
While Visioneering made US$1.9 million (roughly A$2.6 million) in revenue over the December quarter of 2019, this result included a half-million-dollar payment from an initial stocking order sold under the Menicon private label agreement for Europe.
Thus, the company said when not accounting for this stocking order, the most recent September quarter sets a new record for net revenue.
The revenue result was underpinned by record customer receipts, coming in at US$1.9 million (roughly A$2.6 million) for the quarter.
On top of this, Visioneering recorded a 21 per cent quarter-on-quarter growth to active U.S. accounts. The company boosted shipments to eye care professionals in the States by 79 per cent over last quarter and six per cent over the same time last year.
Importantly, the quarterly figures come amid COVID-19 headwinds for the company; Visioneering had to downsize its field sales force early on in the June 2020 quarter because of the pandemic.
Cost-saving to positive cashflow
Yet, with some strict cost-saving measures put in place to curb the economic effects of the virus, Visioneering was able to post a solid cashflow result.
On top of staff cuts, most remaining Visioneering staff took salary reductions while the company temporarily reduced inventory purchases.
As such, Visioneering said it went cashflow positive by around US$100,000 (roughly A$140,000) over the quarter when it excludes cash spent on inventory.
Of course, the company’s official appendix 4C result shows negative cashflow by around the same amount, but the company seemed pleased that when not accounting for inventory spending, it technically went positive.
Either way, Visioneering said even once spending returns to pre-COVID levels in early 2021, it still has enough cash to carry itself into the second half of next year.
Visioneering CEO Stephen Snowdy said the company is “thrilled” with its record positive results.
“Such strong performance amid a pandemic speaks volumes about the quality of our sales staff and the utility of our contact lenses to patients and eye care professionals, while our record low use of cash validates the company-protecting actions taken at the beginning of the pandemic,” Stephen said.
“We continue to gain traction in international territories and look forward to closing a strong 2020 and to continued growth in 2021,” he said.
At the end of September, Visioneering had around US$3.75 million (roughly A$5.2 million) in cash and cash equivalents.
Shares in VTI are trading 12.9 per cent higher this afternoon, worth 3.5 cents each at 3:02 pm AEDT.
