Atomo Diagnostics (ASX:AT1) share price sinks 8% on FY21 results

Investors have been selling this medical device company's shares on Friday…

The Atomo Diagnostics Ltd (ASX: AT1) share price has been out of form on Friday.

Earlier today, the medical device company's shares fell as much as 8% to 22.5 cents. This was in response to the release of its full year results.

A healthcare worker wearing a white coat holds his fingers to his mouth looking worried as healthcare stocks like Cochlear crash today

Image source: Getty Images

Atomo Diagnostics share price falls after losses double in FY 2021

  • Revenue increased 25% to $6.72 million
  • Cost of sales up 52% to $3.3 million
  • Gross profit up 7% to $3.42 million
  • Underlying operating loss widened 101% to $4.79 million
  • Cash balance of ~$18 million

What happened for Atomo in FY 2021?

For the 12 months ended 30 June, Atomo reported a 25.1% increase in revenue to $6.72 million.

This was driven largely by demand for devices from customers in Europe and North America for the production of COVID-19 antibody tests.

Also supporting its sales growth was demand in Australia for Atomo branded COVID-19 rapid antibody and antigen tests and its HIV products in Australia and internationally.

What did management say?

Management was pleased with the company's performance during a year filled with both headwinds and tailwinds.

It commented: "Atomo's activities continued throughout FY21 nothwithstanding the COVID-19 pandemic. There were some delays in activity caused by the pandemic, for example, the global tender for HIV Self Tests run by Unitaid was substantially delayed, the consequence of which was that Atomo's revenue from that tender was modest and primarily occured at the very end of the financial year."

"That said, a significant portion of additional revenue was driven by demand for Atomo's COVID-19 products in Australia and for its platforms for use by OEM customers in their own COVID-19 rapid tests internationally," it added.

What's next?

No guidance was given for the year ahead, which could be weighing on the Atomo share price a touch today.

However, management has stated that it is prioritising the continued expansion of strategic commercialisation partnerships across key global markets. This includes seeking a US market entry partnership.

In addition, it is aiming to expand its COVID-19 revenues with a core focus on the Australian market. It will also target HIV sales growth in existing territories and look to secure commercial agreements in new territories.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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