These 2 ASX tech All Ords shares are hitting new 52-week lows today

Despite another good day for the All Ords, two ASX tech shares are going in reverse.

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Key points

  • It’s another tough day for some ASX tech shares on the All Ords, with the below two hitting 52-week lows
  • HR tech provider ELMO Software has seen its share price drop more than 7% today
  • The share price of Atomos is currently down around 4%

It's another green day for the All Ordinaries Index (ASX: XAO), currently up 0.63% in late trading on Tuesday. However, there are a few ASX tech shares in the All Ords in the red.

In 2022, the ASX share market has been roughed up by worries about inflation, interest rate changes, supply chains, energy prices, and so on.

ASX growth shares have been particularly hit hard. However, there has been something of a recovery in recent days. For example, since 22 June, the Xero Limited (ASX: XRO) share price is up more than 9% and the Block Inc (ASX: SQ2) share price has risen 18%.

It's impossible to say whether we've seen the lowest point of these companies' falls, or if there are more declines to come.

But other tech businesses are hitting new lows, like these two:

ELMO Software Ltd (ASX: ELO)

The ELMO Software share price has fallen around 50% in 2022. It's down 7.38% late today, hitting a 52-week low.

ELMO provides cloud-based software for small and medium businesses to manage their people, processes, and pay. It's currently operating in Australia, the UK, and New Zealand.

It was only a couple of weeks ago that the company confirmed that it had conducted "exploratory discussions" regarding to a confidential, non-binding, indicative takeover proposal priced at $6.10 a share. However, those discussions have since concluded.

At the start of May 2022, the company gave an update for the third quarter of FY22, which showed revenue rose by 37% to $67.4 million. Annualised recurring revenue (ARR) increased 33% to $101.2 million and it generated $2 million of positive earnings before interest, tax, depreciation and amortisation (EBITDA), an increase of $3.2 million.

So, the All Ords ASX tech share is still generating growth, even if the ELMO share price is falling.

Atomos Ltd (ASX: AMS)

The Atomos share price is down around 3.72% in late trading. However, since the start of 2022, it has dropped around 80%, hitting a 52-week low today.

It describes itself as a global video technology company delivering "award-winning, simple to use monitor-recorder content creation products".

The company's products take images directly from the sensor of all major camera manufacturers, then enhances, records, and distributes them in high-quality formats for content creation via major video editing software programs. Atomos said its products provide a faster, higher-quality, and more affordable production system for content creators.

The All Ords ASX tech share gave a trading update at the start of May 2022 which said sales were slower than expected in the first four months of the 2022 calendar year because of a change in the company's marketing approach and lower promotional activity.

This approach was reportedly corrected in the middle of April 2022 and promotional activity was reinstated.

FY22 revenue is now expected to be between $80 million to $90 million, with the EBITDA margin expected to be between 6% to 8%. However, renewed and accelerated promotional activities may see FY22 guidance beaten.

Motley Fool contributor Tristan Harrison 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 Atomos Ltd and Elmo Software. The Motley Fool Australia has positions in and has recommended Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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