Shares of Nanosonics Ltd. (ASX: NAN) have fallen just over 1% today after the company released its quarterly earnings results to the market this morning.
So What: A company unfamiliar to many investors, the Sydney-based Nanosonics develops products designed for infection control and decontamination of utensils in the medical field. Its key product is the Trophon EPR ultrasound probe disinfector which significantly reduces the chance of human error and thus the chance of infections being spread.
Indeed, this is a huge growth market considering the growing issue of hospital acquired infections which are the cause of thousands of deaths around the world each year.
As was anticipated by management, sales slowed down in the fourth quarter as the company transitioned towards establishing direct sales operations in North America (which it says has now been completed). Indeed, sales for the last quarter ($4.132 million) accounted for just 18.6% of full-year sales which hit $22.214 million, up 3.4% on the previous year. The company also said that more than 5,000 Trophon EPR units are now installed across North America.
Commenting on the result, Nanosonics' Chief Executive Officer Michael Kavanagh said: "The fourth quarter has been a very busy period and one of significant achievement for Nanosonics… Our direct operations in the United States are now fully operational and we are very pleased with the high calibre sales professionals we have attracted to the organisation and the speed by which the operations have been established and are gaining traction."
Now What: Nanosonics has been on a tear over the last 12 months with its shares more than doubling in price in that time. Despite its strong rise however, there are still plenty of reasons to like the company as a long-term investment with plenty of room left to continue expanding. The shares currently trade for $1.74, down from an all-time high of $2.02.
