4DMedical Ltd (ASX: 4DX) shares are on the rise today after the company released its half-year results for the period ending 31 December 2020 (1H21). At the time of writing, the 4DMedical share price is trading 2.06% higher at $1.735. At one point during intraday trading, 4DMedical shares rallied by as much as 7% before retreating to their current levels.
Let's take a look at how the medical imaging company has been performing.
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What's driving the 4DMedical share price higher?
The 4DMedical share price is trending higher today after the company posted its first-ever 1H report since listing late last year.
In today's release, the company outlined its progress since its successful initial public offering (IPO) that raised $55.79 million. During the period, 4DMedical received Australian TGA approval for its lung imaging software-as-a-service (SaaS) platform. This is a critical milestone for the company to be able to generate meaningful revenue moving forward and was achieved six months ahead of schedule.
In other news boosting the 4DMedical share price, the company also announced it has secured its first United States research program to advance its lung imaging technology in collaboration with the University of Miami.
Regarding the company's financials, 4D Medical ended the half-year period with $43.04 million cash at bank. The company's revenue from ordinary activities during the half-year was derived from maintenance services relating to its scanners.
This revenue declined 86% from the prior corresponding period (pcp), which included $1.10 million in sales of preclinical hardware. Other income increased 29% to $1.08 million, comprised of tax incentives, grant income, and JobKeeper subsidies.
The company's net loss for the period rose strongly to $13.14 million, up 145% compared to a loss of $5.37 million in the pcp. 4DMedical stated that "the operating result was consistent with management's plans."
Management comments
4D Medical founder and CEO Andreas Fouras addressed the results saying:
The first half of FY21 was an extremely busy period for 4DMedical in which we achieved some major operational milestones, such as the company listing on the Australian Securities Exchange (ASX), as well as making significant progress towards commercialisation in both the U.S. and Australia. I am extremely proud of our team's achievements, particularly whilst faced with COVID-19 which continues to create a level of uncertainty and reduced decision-making capacity, particularly in the U.S.
It has not been a good start to the year for the 4DMedical share price. Year to date, the company's share have fallen by nearly 29%, faring far worse than the All Ordinaries Index (ASX: XAO), which has delivered a 2.3% gain so far this year.
Based on the current 4DMedical share price, the company commands a market capitalisation of around $300 million.
