Atomo Diagnostics (ASX:AT1) posts 709% boost in quarterly cash receipts

Atomo Diagnostics released its quarterly activity report yesterday, which included a mammoth boost in cash receipts. We take a closer look at what the company has been up to.

Gretchen Kennedy

Gretchen grew up in a small Connecticut town where she learned to read The Wall Street Journal as part of the grade six enrichment program. She moved to Australia in 2002, earned a Master of Arts (Professional Writing) and went on to spend eight years writing on Wall Street. In June 2018, Gretchen returned to Australia and has since developed a keen interest in all things ASX. In December 2020, she started writing for the Motley Fool. Gretchen's usually writing something, reading a book or chasing her dogs around.

Published January 28, 2021 1:18 pm AEDT

The Atomo Diagnostics Ltd (ASX: AT1) share price dipped yesterday and has remained flat today after the medical device company released its quarterly activity report for the period ended 31 December 2020.

Atomo designs blood-based rapid diagnostic test (RDT) devices. Through the company's device portfolio, it aims to provide technology that simplifies the blood testing process and reduces errors. The company offers options for both medical professionals as well as for people who require self-testing to manage their health.

A man drawing an arrow on a growth chart, indicating a surging share price — Image source: Netflix

Quarterly activity report highlights

According to yesterday's quarterly activity report, the company brought in a total of $5.8 million in cash receipts for the first half of the FY21. This includes $2.8 million gained during the second quarter, up a whopping 709% from $346,000 in the previous corresponding period.

Sales for the second quarter of FY21 (unaudited) came in around $2.0 million. The company also advised that an additional 259,200 units shipped to one of its US-based customers, Access Bio, aren't reflected in revenue to date but will be booked as revenue in the third quarter FY21.

Across North America, Europe and Australia, Atomo continues to progress its rapid testing coronavirus technology. This involves activities like pursuing sales opportunities, finalising submissions and gaining associated approvals.

Additionally, the company continues to progress supply agreements pertaining to its HIV tests. New business is expected in the emerging global health market moving forward.

Positioning for growth

According to Atomo's co-founder and managing director John Kelly, the company is positioning itself for growth. Mr Kelly believes that the current need for coronavirus tests around the world presents significant opportunity for Atomo.

During the quarter, Atomo launched its TGA-approved AtomoRapid COVID-19 antibody test for sale in the Australian market. Total sales for the product were $394,000 across a range of professional testing and corporate channels.

Mr Kelly goes on to note the Biden administration's recent $50 billion commitment to fund testing across the US. As a result of this, Mr Kelly expects the coronavirus will continue to play an important part of Atomo's business "for a number of years".

Atomo share price snapshot

At the time of writing, the Atomo share price is sitting at 29.5 cents per share, giving the company a current market capitalisation of $166.4 million. The Atomo share price has stayed relatively flat in 2021 so far, and is down 24.36% on this time last year.

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