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Be the first with the news that moves the market- Visioneering Technologies (VTI) has tumbled on the ASX today after releasing its latest unaudited quarter figures for the December quarter of 2020
- Quarterly net revenue came in at US$1.4 million (around A$1.8 million) for the December quarter, which is 13 per cent lower than the September quarter 2020 and 2 per cent lower than the December quarter of 2019
- However, Visioneering said seasonality in the contact lens industry typically means December revenue is between 10 and 20 per cent lower than the previous quarter
- This means despite the soft figures, the company's December quarter was consistent with seasonal trends
- As far as cashflow is concerned, Visioneering went cashflow-negative over the December quarter by around US$1.6 million (around A$2.1 million)
- Still, Visioneering said it expects to bring in enough cash over the next two quarters to operate through to the end of June
- Shares in Visioneering closed almost 14 per cent lower today a 1.9 cents each
Visioneering Technologies (VTI) has tumbled on the ASX today after releasing its latest unaudited quarter figures for the December quarter of 2020.
In the report, Visioneering revealed soft net revenue and U.S. shipments compared to both the third quarter of 2020 and the fourth quarter of 2019.
The quarterly numbers are particularly soft compared to the September quarter of 2020 when Visioneering set a new record for quarterly revenue.
For the three months to the end of December, Visioneering made US$1.4 million (around A$1.8 million) in net revenue, bringing total unaudited revenue for 2020 to US$5.1 million (around A$6.6 million). This quarterly figure is 13 per cent lower than the third quarter of 2020 and 2 per cent lower than the December quarter of 2019.
Shipments to U.S. eye care professionals (ECP) also came in at US$1.4 million (around A$1.8 million), which takes total 2020 shipments to US$5.6 million (around A$7.3 million).
However, Visioneering said seasonality in the contact lens industry typically results in fourth-quarter revenue declining by between 10 per cent and 20 per cent on the quarter before. Thus, the soft December quarter figures are consistent with this trend.
Visioneering CEO Stephen Snowdy said the company held steady in the face of COVID-19 havoc, particularly considering the effect the virus has had on the United States.
"In 2020, we battled the effects of a deadly pandemic and a battery global economy and did so with a much smaller work force," Stephen said.
"We think this demonstration of strength in such a challenging environment speaks to the value of our products represent to both patients and practitioners," he said.
As far as cashflow is concerned, Visioneering went cashflow-negative over the December quarter by around US$1.6 million (around A$2.1 million).
With US$2.4 million (around A$3.1 million) of funds left in the bank, this means Visioneering has around one and a half financial quarters worth of cash available.
Nevertheless, Visioneering said it expects to bring in more cash receipts during the first and second quarter of 2021 than it did in the December 2020 quarter, meaning it will have sufficient cash to operate through to the end of June.
While the company did not reveal plans to raise capital, management said it is confident it will be able to tap investors for extra cash successfully if the need arises.
Still, investors responded poorly to today's report; shares in VTI closed 13.64 per cent lower at 1.9 cents this afternoon. The company has a $21.71 million market cap.
