Here’s why the EMvision share price surged 8% on Wednesday

Investors appear happy about an agreement EMvision has struck with tech company Keysight Technologies.

| More on:
A guy wearing glasses tries to show off his muscles.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • EMvision shares are racing higher today following a company update
  • The company has entered into a strategic agreement with a long-term partner Keysight Technologies
  • In the last 12 months the EMvision share price has fallen more than 38%

The EMvision Medical Devices Ltd (ASX: EMV) share price has emerged from a trading halt on Wednesday morning, and shot 8% into the green.

Prior to their halt, EMVision shares closed at $1.94. Upon returning to trade, they have been sitting in the green amid the release of a company announcement. At the time of writing, EMvision shares are swapping hands at $2.05.

What did EMVision announce?

The company advised it has entered into an original equipment manufacturer (OEM) agreement with Keysight Technologies Inc (NYSE: KEYS).

According to the release, “Keysight is the world leader in radiofrequency (RF) test and measurement technology”. Specifically, the company signed its agreement with Keysight’s Australian subsidiary.

Under the agreement, EMvision will receive exclusive supply for ‘fast sweep’ features in the vector network analyser (VNA).

For reference, EMvision says the VNA is a custom solution developed in collaboration with Keysight.

“The VNA is a high performance, lower component count, miniaturised module responsible for accurate signal measurement,” states the release.

“The custom VNA represents a strategic investment by Keysight into the electromagnetic imaging sector.”

Regarding the announcement, EMvision CEO Dr Ron Weinberger says the collaboration “has been first class”.

This Agreement recognises the roles that both parties have played in the development of the bespoke VNA over a period of 3 years. I would like to thank the Keysight team for their concerted work in developing a best-of-breed solution for EMvision and look forward to the commercial phase of our relationship.

Noteworthy is that Keysight is not a medical device manufacturer. However, it does possess “the strongest portfolio of Vector Network Analysers (VNA), which are core to the sensors that are being used inside EMvision’s portable brain scanner,” says the company.

The agreement builds on a relationship that spawned back in 2019. Then, the pair entered into a strategic collaboration to develop “custom healthcare-focused VNA solutions”.

EMvision share price snapshot

In the last 12 months the EMvision share price has fallen more than 38%. Meanwhile, it is 23.5% in the red since trading resumed this year.

Following this announcement, shares have bounced from a low point and are tracking back towards monthly highs.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended EMvision Medical Devices Limited. 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 Scott Phillips.

More on Technology Shares

An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement today
Technology Shares

Here’s what Goldman Sachs thinks of the Xero share price

What's being said about Xero's shares this week?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Earnings Results

Nuix share price tumbles following $23m loss in FY22

Nuix shares dropped into the red on Thursday...

Read more »

Young man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank today
Earnings Results

Codan share price sinks 10% despite record profit

How did Codan track for the 2022 financial year?

Read more »

A gold bear and bull face off on a share market chart
Technology Shares

Does the bull beat the bear for this ASX tech share?

Let's take a look at the bull and bear cases for this ASX tech share.

Read more »

A boy is about to rocket from a copper-coloured field of hay into the sky.
Technology Shares

Guess which ASX tech share is soaring 16% on a new Google deal

This tech share has had a great past 12 months.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Xero share price dips 5% on weaker UK performance

The ASX market darling is feeling the heat after providing an update at its AGM.

Read more »

a man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Earnings Results

Data#3 share price dips despite 19% leap in FY22 dividend

The ASX tech share said ongoing supply chain issues had impacted its performance over the year.

Read more »

A hipster looking man with bushy beard and multiple arm tattoos sits on the floor against a sofa reading a tablet with his hand on his chin as though he is deep in thought.
Industrials Shares

Why did the Novonix share price nosedive 6% today?

We check what happened to shares in the battery material technology company on Wednesday.

Read more »