The Atomos Ltd (ASX: AMS) share price is surging higher this morning, after the video equipment company announced a sales guidance update. At the time of writing, the Atomos share price is up an outstanding 13.2% to $1.11.
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What did Atomos announce?
The Atomos share price is on the move after announcing it has surged past its previous sales guidance.
According to this morning's release, Atomos advised it has delivered $32.6 million in sales for the first-half of FY21. The result was a much better than the expected $28 million for the 6 months ending December 2020.
In contrast, $11.8 million was achieved the prior period, although this was marred by global COVID-19 lockdowns which affected trading conditions.
Pleasingly, the current sales performance matches the company's half-year record reported in the first half of FY20. The rebound in sales was underpinned by the launch of Apple's ProRes RAW feature, which saw a strong adoption. Most major video companies around the world have stated their support for the new ground-breaking technology.
Atomos highlighted that because of its long-standing partnership with Apple, it is been the only company able to record on ProRes RAW format. In light of this, key camera makers such as Sony, Canon, Panasonic and Nikon have all released new RAW camera using Atomos equipment. Previously, the company supported Fuji and Olympus to record ProRes RAW images.
In addition, Atomos noted that the response to its new neon range (soft-launched late last year) has been positive. Targeting the entertainment market, initial sales for the neon range were recorded around $1 million. The company expects this revenue stream to accelerate in the second-half of the financial year.
Atomos revealed that cost management initiatives remain in check, and are in line with original forecasts. Earnings before interest, tax, depreciation and amortisation (EBITDA) and cash flow are projected to be positive for next month's half-yearly report.
What did management say?
Atomos executive chair Mr Chris Tait commented on the strong result, saying:
We are very happy with the Company's performance. The marked recovery in sales from the first half of calendar year 2020 has resulted in us equalling our record performance for a six-month period. The fact that this has been achieved in such trying circumstances, with reduced resources and lower costs is both an indication of relevance and value of our products to our customers and a testament to the remarkable Atomos team.
Atomos share price snapshot
The Atomos share price has been travelling higher over the past 6 months, hitting gains of over 130% for investors.
During March 2020, the company's shares fell to an all-time low of 24 cents, but have since strongly recovered.
On the current Atomos share price, the company has a market capitalisation of $238.1 million.
