The Uscom Ltd (ASX: UCM) share price tumbled today after the company released its quarterly cash report, showing significant falls across every major category.
The Uscom share price was down 6% at the close of trade today, at 15.5 cents per share.
A quick take on Uscom
Uscom is a medical technology company engaged in developing, designing, manufacturing, and marketing premium non-invasive cardiovascular and pulmonary medical devices.
The company's geographical segment includes Australia, Asia, the Americas, Europe, and other regions. It generates maximum revenue from Asia.
The company offers USCOM 1A, a non-invasive hemodynamic monitor that measures cardiovascular function; BP+; a supra-systolic oscillometric central blood pressure monitor that measures blood pressure and blood pressure waveforms at the heart; and SpiroSonic, a pulmonary function testing device based on multi-path ultrasound technology.
Uscom's financial woes
For the third quarter of FY21, Uscom reported cash receipts of $0.89 million for the period, which is down 53% from $1.91 million in the preceding quarter, and at $4.2 million year-to-date with Q4 trading still ahead.
Uscom's sales revenue was $0.78 million, down 20% from $0.98 million in the previous quarter. This follows its record growth of cash receipts of 149% and sales revenue of 125% reported in the prior Q2.
For the current quarter, Uscom's global entity reported a net operating cash outflow of $0.25 million, while for Q2, cash flow was positive at $0.3 million. Uscom remains cash flow positive for the YTD with $2.03 million cash on hand on 31 March.
What did management say?
Uscom executive chair Professor Rob Phillips said that the future looked a lot brighter for the company.
Q3 sales and receipts remain strong but down due to the impact of the Chinese New Year, effecting China activity for 6 weeks, while both European and US activities remained constrained by the pandemic. Hungary has effectively been closed for the quarter and our US team are still unable to attend hospitals and clinics.
However, we remain cash flow positive for the YTD, supported by strong China sales. Going forward, management noted the 18.3% GDP growth in China for the March quarter and look forward to this growth converting into health spending.
Uscom share price snapshot
The Uscom share price has been tumbling for some time. It's down 11% over the past month, 3% since 2021 began and 26% over the past 12 months.
