Let's take a look at how these three ASX All Ordinaries companies performed in financial year 2022 (FY22).

Atomos Ltd (ASX: AMS)

The Atomos share price is plummeting 16% to trade at 24 cents after the company dropped its earnings for FY22. That's despite the manufacturer and distributor of video equipment posting record revenue for the period.

That's right, Atomos brought in $82 million of revenue in FY22, a 4.3% improvement on that of the prior corresponding period (pcp).

However, its net profit after tax (NPAT) tumbled 243% to a $6 million loss and its earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 115% to a $1.2 million loss.

The company's results were weighed down by several one-off expenses. But it expects the momentum experienced in the final quarter will continue into FY23.

PPK Group Limited (ASX: PPK)

The PPK share price is also suffering on the back of the company's full-year earnings. It's falling 0.9% right now to trade at $1.62.

That's despite the company's revenue doubling in FY22, lifting to $1.6 million. Its loss also came in at half that of FY21, improving to reach ($2.5 million).

However, the company declined to pay a final dividend for the second year in a row, bringing its full-year payout to 2.81 cents per share. That's down from FY21's total dividends of 3.5 cents.

Commentary on some of the company's segments might also be weighing the stock down today.

CogState Limited (ASX: CGS)

Finally, ASX All Ordinaries share CogState is plunging 5.6% to trade at $1.60. Its fall has come on the back of full-year results released by the cognition-focused technology company.

The share price dip is despite the company posting around US$45 million of revenue for the period, a 37.6% increase on that of the pcp.

It also brought in US$13 million of EBITDA – a 127.8% lift, and $7.5 million of NPAT – a 43.7% improvement.

The post 3 ASX All Ordinaries shares being sold off following FY22 results appeared first on The Motley Fool Australia.

The video technology company's shares are up 31.11% to an intraday high of 29.5 cents at the time of writing.

Let's take a closer look at the company's release today.

Atomos continues to achieve record sales growth

The Atomos share price is on the move after announcing it has ended the financial year with a strong finish.

In a statement to the ASX, Atomos advised it has achieved unaudited revenue in excess of $82 million for FY22.

This was underpinned by an outstanding Q4 sales result of $37.5 million, representing a 37% increase over the prior corresponding period.

The company believes that the ongoing positive momentum will run into FY23 which appears to have excited investors.

The Q4 finish reflected a turnaround in fortunes for Atomos when looking at the previous Q3 sales performance. The latter registered just $3.6 million in revenue for the January – March quarter which was 80.5% lower than Q3 FY21.

Atomos blamed the weak numbers on a change in marketing approach and lower promotional activity. This tactic was corrected in mid-April leading to a significant positive impact in Q4 FY22.

Furthermore, management noted the launch of its Atomos cloud strategy during the final quarter. This includes the company's new series 2 generation of connected devices (Atomos Connect, Shogun Connect and Zato Connect).

Nonetheless, Atomos is forecasting its FY22 pro forma EBITDA margin to be at the lower end of the 6% – 8% guidance range.

What did management say?

Atomos CEO, Trevor Elbourne touched on the strong result, saying:

It is extremely pleasing to be reporting another year of record sales. Given the challenges we faced through the year, including supply chain difficulties, disruption to tried and proven marketing strategies and leadership changes, it is a testament to the entire team that we have been able to deliver this growth despite those challenges.

…I am looking forward to a strong FY23 with our new pipeline of cloud enabled products.

Atomos share price snapshot

Despite today's euphoric gains, the Atomos share price is down 74% over the course of the past 12 months.

Its shares were particularly hit hard in early May following a disappointing trading update from the company.

Atomos commands a market capitalisation of $52.25 million.

The post Why is the Atomos share price soaring 31% today? appeared first on The Motley Fool Australia.

3 All Ords shares gaining more than 20% today

MoneyMe Ltd (ASX: MME)

The MoneyMe share price is launching higher on Friday, gaining nearly 25% to trade at 71 cents.

The consumer credit business announced it has completed its inaugural term securitisation of personal loan customer receivables this morning.

On top of that, the company increased the capacity of its Autopay warehouse from $300 million to $450 million last month.  

The two events, along with existing arrangements, have increased its external securitisation funding facilities to $1.65 billion, with $388 million of undrawn capacity.

Praemium Ltd (ASX: PPS)

Fellow All Ords constituent Preamium is also seeing its share price rocket higher on Friday. The wealth management-focused tech company's stock is lifting 20.43% right now to trade at 56 cents.

Its gain follows news the company has successfully divested its international businesses and will now focus on its domestic leg.

The company sold its operations in the United Kingdom, Dubai, Hong Kong, and Jersey for 35 million British pounds sterling.

"This successful divestment will allow Praemium to focus on the enormous opportunity that the Australian wealth market offers," Praemium CEO Anthony Wamsteker said.

The company plans to return approximately $50 million to shareholders through a special dividend and on-market buy-back following the sale.

Atomos Ltd (ASX: AMS)

Finally, ASX All Ords tech share Atomos is taking off on Friday. Right now, its stock is swapping hands for 24 cents apiece, a 26.32% improvement on its previous close.

Interestingly, no news has been released by the company since the end of May.

However, it did finish yesterday's session at an all-time low of 19 cents.

The post These 3 ASX All Ords shares are delivering double-digit gains on Friday appeared first on The Motley Fool Australia.

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.

The post These 2 ASX tech All Ords shares are hitting new 52-week lows today appeared first on The Motley Fool Australia.

Evidently, investors are abandoning tech shares in droves on Friday, demonstrated by the 3.8% fall across the sector. However, the video technology company is feeling the pain more than most today. At the time of writing, Atomos shares are down a staggering 41.67% to 35 cents. In early trade, they sank as low as 26 cents.

The cataclysmic reaction to the announcement has resulted in the company collecting a new all-time low share price.

Promotional misstep and margin compression

Many Atomos shareholders are choosing not to stick around any longer following the company's latest trading update.

According to the release, the first four months of the 2022 calendar year have been disappointing compared to expectations. The slower sales volume was attributed to a change in marketing approach and lower promotional activity.

In turn, FY22 revenue forecasts have been revised to adjust for the quieter trading conditions. Now, shareholders should expect revenue to range between $80 million and $90 million for the full year. Meanwhile, earnings before interest, tax, depreciation, and amortisation (EBITDA) margin is forecast to be between 6% and 8%.

Unfortunately for the Atomos share price, the insights within the update contained further caution for future expectations. For example, the recent COVID-19 lockdowns in Shanghai might put a short-term dent in the company's production schedule. However, this is included in the newly advised guidance.

Furthermore, margins are slated to suffer while Atomos ramps up promotions and discounting of its cloud-enabled products. This is a targeted approach to give take-up of the company's cloud services a nudge forward.

What about the positives for the Atomos share price?

On a positive note, the company highlighted that recent new launches have got a good reception. Encouragingly, the Aussie company landed itself seven awards at the National Association of Broadcasters (NAB) trade show recently.

Commenting on the successful event, Atomos interim CEO Trevor Elbourne said:

The reception we have received to our recent product launches is a strong endorsement of the technology roadmap we have been executing for the last couple of years. Whilst we were confident that the approach we were taking would resonate with our customers and the industry, it is gratifying to have that validated so strongly at NAB. The response we've had at NAB this year from all quarters has been so positive that I would mark this the most successful NAB for Atomos that I can recall.

However, Elbourne also shared in the disappointment with the revised guidance. A feeling clearly resonating across the market today as the Atomos share price sinks lower.

The Atomos share price is now down 68% since the beginning of the year.

The post Atomos share price plunges 42% lower on 'slower than expected sales' appeared first on The Motley Fool Australia.

During mid-afternoon trade, the video technology company's shares are down 16.11% to 75.5 cents.

Atomos appoints interim CEO

Investors are selling Atomos shares after the shock announcement that its CEO, Estelle McGechie will no longer serve in the role.

According to the release, Ms McGechie has yet to relocate to Australia, which is a requirement for the top job.

Atomos stated that its CEO must reside in Melbourne where its headquarters is based.

As a result of the departure, Atomos chief technology officer, Trevor Elbourne will assume the CEO role for the interim.

Mr Elbourne, who lives in the Victorian capital, is expected to launch the company's new products later this month. He and his team have been diligently working on improving video production workflows for the last two years.

Notably, Mr Elbourne is one of Atomos' founding employees, having joined the company in 2012. Since then, he has played a vital role in determining Atomos' technology strategy and product roadmap.

In 2017, Mr Elbourne was appointed chief technology officer and oversaw the successful development of Atomos' flagship Ninja V and Shinobi products.

The board advised it will commence a global search process for a permanent appointment.

Atomos reconfirmed its FY22 guidance for revenue of $95+ million as well as an EBITDA margin of 12% to 15%.

Atomos' non-executive chair, Chris Tait touched on the CEO change saying:

I would like to thank Estelle for her efforts at Atomos and on behalf of the Board wish her the best in her future endeavours.

Trevor is a logical and highly capable appointment as interim CEO given his intimate knowledge of the products and technology that have made Atomos one of the global leaders in video technology today.

As the Company embarks on an exciting expansion of our product line-up, the Board is confident Trevor will bring his deep experience in technology innovation to ensure our products continue to meet the changing needs of our growing customer base.

About the Atomos share price

Over the past 12 months, Atomos shares have lost 25% in value, with year to date dropping around 30%.

Based on today's price, Atomos has a market capitalisation of roughly $168.98 million.

The post Why did the Atomos share price just tumble 16%? appeared first on The Motley Fool Australia.

Earlier today, brokers gave their verdict on these shares and, pleasingly for investors, they are feeling very bullish. Here's what you need to know:

Atomos Ltd (ASX: AMS)

Morgans is very positive on this video equipment developer. This morning the broker responded to its half year results by retaining its add rating but slightly trimming its price target to $1.87. This implies almost 100% upside for the Atomos share price from current levels.

The broker commented: "AMS' 1H22 result saw a beat on EBITDA (A$3.2m vs A$2.5m MorgansE) although further upside was impacted by higher variable freight costs and supply chain disruptions – no surprise there given the global operating environment."

"While it appears the market continues to question AMS' ability to hit FY22 guidance, we look to a period of lower promotional activity, pull-through of demand from out-of-stock devices in 1H, higher contribution from 100% margin software sales, and the release of Series 2 (S2) products (higher margin) within the period, off a largely fixed cost base. We are comfortable with guidance at the lower end. We have made only marginal changes to forecasts and remain comfortable with our forecasts," it added.

Lifestyle Communities Limited (ASX: LIC)

This retirement communities company's shares could be in the buy zone according to the team at Goldman Sachs. In response to its half year update, the broker retained its conviction buy rating and lifted its price target to $24.50.

This suggests potential upside of 33% from the current Lifestyle Communities share price of $18.46.

Goldman commented: "Overall, we saw the result as very solid: LIC delivered a settlement number in line with our expectations despite ongoing lockdown conditions through the half and the number of resales continues to grow YoY. In our view, the business is well capitalised to organically increase its development pace to support a higher settlement number: although gearing reached 40% in the half, this should unwind as a number of communities move from development phase to settlement phase."

Outside this, the broker expects the company to outperform for three reasons. These are a step up in the pace of land acquisitions, structural growth in demand for land lease, and fundamental valuation support for cap rates.

The post Brokers name 2 ASX shares with at least 30% upside potential appeared first on The Motley Fool Australia.

At the time of writing, the video technology company's shares are up 14.8% to $1.13.

Atomos continues to achieve record sales growth

The Atomos share price is rising after the company revealed it has performed better than its previous sales guidance.

According to its release, Atomos has delivered $40.9 million in unaudited sales for the first-half of FY22. The result was slightly above the previous guidance of $40 million for the 6 months ending 31 December 2021.

In contrast, $32.8 million was achieved the prior period (H1 FY21), a 25% improvement. Although, the first-half of last year's financial result was heavily impacted by global COVID-19 lockdowns which affected trading conditions.

Pleasingly, the current sales performance surpasses the company's half-year record reported in the prior corresponding period.

Atomos noted it has successfully navigated through H1 FY22 with minimal disruption to its core products, Ninja V and Ninja V+. While there were some stock outages of products experienced in the first half, this is expected to be less significant in H2 FY22.

What did management say?

Commenting on the result pushing up the Atomos share price today, CEO Estelle McGechie said:

I'm very pleased with the 25% growth in 1H'22 sales over the prior year period given the significant disruption to supply chains for many companies across the world. Our team has worked very hard to navigate these issues and our continued growth is a testament to that. We see our sales only further accelerating in the second half of FY22 and are able to reconfirm our full year sales guidance of $95m+.

Furthermore, our cost measures and governance are robust enabling a reconfirmation of our full year EBITDA [earnings before interest, taxes, depreciation, and amortisation] margin in excess of 12% for the underlying Atomos business. This does not include approximately $1m of opex [operating expense] costs which we expect to incur from our recent investment in Videogram.

Atomos share price snapshot

The Atomos share price travelled higher in the later part of 2021, before hitting the brakes and moving in reverse.

Over the past 12 months, the company's shares have gained around 4% for investors, factoring in today's rise.

Based on the current share price, Atomos commands a market capitalisation of $245.70 million, with approximately 222.35 million shares outstanding.

The post Here's why the Atomos (ASX:AMS) share price is surging 15% today appeared first on The Motley Fool Australia.

At last check, Atomos shares were changing hands at $1.18 apiece, after trading as low as $1.04 just before the afternoon session.

Atomos started the day behind as investors responded poorly to a set of market updates.

The tech company that specialises in products for the content creation market first provided an update on a US$2 million investment in a cloud development agreement. Shortly afterwards, it confirmed its FY22 guidance.

Let's take a closer look.

What did Atomos announce?

Atomos advised it has entered into a cloud development agreement with Cinemacraft Inc to fund the completion of its Videogram platform.

The release notes that Cinemacraft's CEO and founder Sandeep Casi developed Videogram as a "cloud-based platform with a vision to automate video workflows to deliver unique opportunities for video creatives".

Atomos will invest up to US$2 million to complete the development of the Videogram platform, including US$800,000 for patents and oversight.

Cinemacraft has a string of flashy investors on its books ranging from venture capital firm 500Startups to a Japanese actor. According to Atomos, the investment builds on its depth in video and multi-camera capture to expand into cloud-based services.

The agreement also has an embedded option that allows Atomos to acquire all shares in Cinemacraft. Atomos may exercise its option based on the financial performance of Videogram over two 12-month periods ending September 30, 2023.

Regarding the agreement, Atomos Chief Executive Officer Estelle McGechie said:

We are delighted to partner with Cinemacraft; they have developed unique cloud solutions that will underpin an exciting new chapter for Atomos. When you combine Sandeep's experience developing technology at Fuji Film and ILM for Lucas Films, with his passion for using machine learning to simplify a creator's journey, you can see Videogram is poised to reinvent the way online video is discovered, consumed, shared and monetised. I look forward to working closely with Sandeep and his team to help realise the potential of Videogram.

What about Atomos' FY22 guidance?

Further to the cloud agreement, Atomos also advised on its FY22 full-year guidance today. The company expects revenue to be in excess of $95 million, an increase of at least 21% over FY21 revenue.

First half revenue is anticipated to be in excess of $40 million, up 22% year on year despite being "impacted by supply chain challenges".

Earnings before interest, tax, depreciation and amortisation (EBITDA) margins are expected to be upward of 12%, up from 10.4% in FY21. Also factored into this EBITDA margin guidance is some upward pressure on variable costs, most notably freight, according to the release.

The forecast EBITDA margin relates to the underlying Atomos business and excludes approximately $1m of operational costs resulting from the investment in Videogram.

Commenting on Atomos' guidance, McGechie said:

In effectively managing our supply chain to ensure sufficient stock to meet our sales targets, we have in inventory during the first half and as a result will experience a cash outflow.

The Atomos share price has gained almost 24% in the past 12 months, after rallying 22% this year to date.

However, in the past month, it is down by more than 20% and has fallen 9% in the past week.

The post Here's why the Atomos (ASX:AMS) share price is sinking 8% today appeared first on The Motley Fool Australia.

"Investing in companies that could push through temporary pain to drive top-line growth was key for the WAM Microcap Ltd (ASX: WMI) team," said Oscar Oberg, Catriona Burns and Matthew Haupt in a memo to clients.

"While the equity market has rallied significantly since the lows of mid-2020, we continue to focus on companies we believe will benefit from a reopening of borders and lockdowns lifting in the medium to long term."

The WAM Microcap shares themselves have gained more than 32% in the past 12 months, affirming this investment strategy. 

The other secret is to remember there are more than 2,000 companies listed on the ASX. 

This means there are plenty outside the usual large-cap suspects that don't receive much publicity.

According to the Wilson trio, a cornucopia of initial public offerings meant that they found plenty of those gems.

"Many companies were overlooked or under-researched by investors, creating mispricing opportunities," said the fund managers.

"These conditions were favourable for our investment process of finding undervalued growth companies with strong fundamentals and a catalyst for a share price re-rating."

Oberg, Burns and Haupt named 2 ASX shares that WAM Microcap holds that fit the bill:

Plenty of hairy legs after lockdown

Hair removal salon network Silk Laser Australia Ltd (ASX: SLA) only listed on the ASX in December. The Wilson team was impressed with its first full year result.

"Silk Laser Australia beat its FY2021 forecast and upgraded its guidance," the memo read.

"The company recorded year-on-year revenue growth of 82% and a 129% increase in online sales as digital expansion drove sales growth."

In June, Silk Laser raised $20 million via new shares to acquire businesses both in Australia and New Zealand to grow its network.

"The deal is set to close in September and we expect it will give Silk Laser Australia a stronger market share on the Australian east coast market with a scaled entry into Victoria and New Zealand."

Silk Laser shares are up more than 8.3% this year, although its current price of $3.90 is well down on its high of $5.30.

ASX shares for the 'global video boom'

Video hardware and software maker Atomos Ltd (ASX: AMS) is seeing "rapid adoption" of its ProRes RAW video compression protocol.

"Atomos announced record revenue of $78.6 million for FY2021," said the Wilson portfolio managers.

"The company also launched several new products during the financial year, including hardware devices and software applications which supported the company's revenue growth."

The Wilson team were not the only ones to like what they saw. Atomos shares have rocketed almost 34% since the results a fortnight ago.

Oberg, Burns and Haupt reckon the pandemic has triggered "a global video boom".

"We remain positive on Atomos as the company continues to find a solid market base for growth, with new products and services already in the making."

The post 2 small-cap ASX shares pushing through lockdown pain appeared first on The Motley Fool Australia.

Let's investigate further.

Atomos share price lifts on record revenue and strong cash flow

Atomos detailed several investment highlights it achieved this quarter, including:

• Record revenue of $78.6m, a 77% year on year growth schedule
• EBITDA of $8.2m on a margin of 10.4%, (10.4% of sales), compared to a loss of $7.1 million in FY20
• EBITDA margin trending towards 12-15%
• Strong cash flow of $7.1m, an 87% conversion rate

What happened in FY21 for Atomos?

In a positive for the Atomos share price, it recognised record revenue of $78.6 million in FY21. This signifies a 77% growth from the year prior.

Consequently, the company "flagged a return" to pre-pandemic sales volumes, underscored by "rapid adoption of Apple and AMS's ProRes Raw video standard", amid other product launches.

In fact, Atomos describes ProRes Raw as its "key revenue driver" in FY21, where "ten major camera partners" have now integrated "RAW enabled cameras".

As a result, the company has seen monthly activations on ProRes Raw "increase sevenfold in 18 months".

Furthermore, Atomos recognised this revenue on higher gross margins of 47.6%, up from 39.8% last year, largely driven by "improved pricing across the entire product range".

Moreover, the company completed a raft of new product launches across the year. This includes "software applications" for the first time, as per the release.

For instance, Ninja V+, the "world's first 8K and high frame rate monitor recorder" was released in coincide with AtomX Cast. When paired together, the duo creates a "broadcast studio quality solution" for users.

What did management say?

Speaking on the results, Atomos executive chair Chris Tait said:

I am delighted to be reporting these outstanding results. It seems a long time ago when at the start of FY21 we were unsure of the extent and pace of the Atomos recovery from the pandemic. The speed and strength of that recovery and the ongoing momentum is a testament to the skill and hard work of the entire Atomos team.

Regarding the ProRes Raw and new product launches, Tait added:

In particular we are pleased to see the establishment of the ProRes RAW ecosystem with Atomos playing an integral part in its global adoption. With six new products coming to market in the last few months of FY21, including our first two software offerings and with the new Series 2 platform well under development, we are excited about what FY22 will bring.

What's next for Atomos?

The company estimates EBITDA margins to "trend towards" 12–15% over the coming periods.

Moreover, Atomos will "carefully consider" acquisitions in the three core areas. These include technology standards, complimentary tech and new complementary markets.

It anticipates the effect of product launches in FY21 to continue building sales momentum. As such, Atomos has "new products and services in the pipeline already".

The Atomos share price has posted a year to date return of 34%, extending the previous 12 month's climb of 148%.

These gains have outpaced the S&P/ASX 200 Index (ASX: XJO)'s return of around 25% over the past year.

The post Atomos (ASX:AMS) share price soars 16% on FY21 earnings appeared first on The Motley Fool Australia.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

There's also one called WAM Microcap Limited (ASX: WMI) which targets small cap ASX shares with a market capitalisation under $300 million at the time of acquisition.

WAM says WAM Microcap targets the most exciting undervalued growth opportunities in the Australian microcap market.

The WAM Microcap portfolio has delivered gross returns (that's before fees, expenses and taxes) of 24.1% per annum since inception in June 2017, which is superior to the S&P/ASX Small Ordinaries Accumulation Index average return of 12%.

These are the leading two small cap ASX shares that WAM outlined in its most recent monthly update:

Silk Laser Australia Ltd (ASX: SLA)

WAM describes Silk Laser as a business that operates a network of specialist clinics offering non-surgical aesthetic services and products. In June, the company reached a milestone of 60 clinics, including ten new clinics opened during FY21.

The fund manager pointed out that Silk announced a $52 million strategic acquisition of Australian Skin Clinics and The Cosmetic Clinic in New Zealand. This almost doubled its clinic footprint to 117 and progressing its medium-term network plan of 150 clinics.

The small cap ASX share announced a $20 million capital raising to partially fund the acquisition, with management expecting the deal to deliver greater than 20% earnings per share (EPS) accretion before synergies.

WAM Microcap said that it's still positive on Silk because of its "strong" organic growth profile, the benefit of synergies and the potential and capacity for further accretive acquisitions.

Atomos Ltd (ASX: AMS)

The small cap ASX share manager explained that Atomos is a global provider of digital imaging creation hardware and software tools for video professionals.

Atomos is headquartered in Melbourne, it creates "market-leading" 4K and HD Apple ProRes monitor-recorders, used by video professionals for content creation, increasing video quality and reducing production costs.

WAM pointed out that in June, Atomos strengthened is management team with Estelle McGechie, who has been picked as the chief product officer and was previously a product manager at Apple in video applications.

The small cap ASX share has reported a 73% increase of its sales in FY21 to more than $77 million. The fund manager said that momentum has continued to build through the second half of the year with sales of $44.2 million. Those second half sales represented a 275% increase on the prior corresponding six month period.

WAM Microcap remains positive on Atomos with additional product releases into the professional and general consumer categories, while additional upside in operating leverage is "compelling" because of a relatively stable fixed cost base.

The post Wilson Asset Management thinks these 2 top small cap ASX shares are a buy appeared first on The Motley Fool Australia.

At close of trade today, shares in the content creation technology company were swapping hands for $1.23. This time last month, they were going for just $1.00.

The gains to the Atomos share price come despite the company releasing just a single piece of news to the market in the last month. However, its CEO has been in the news today for all the wrong reasons.

Let's take a look at what Atomos has been up to lately.

The latest news on Atomos

Sydney escapee

Atomos is in the news today after its CEO Jeromy Young was allegedly caught trying to break COVID-19 border restrictions aboard a super yacht.

Maritime Safety Queensland noted a 32-metre super yacht had landed on the Gold Coast after travelling from Sydney. 7 News reported today that Young was among the 4 people on board the super yacht.

After arriving on the Gold Coast, the group attended a rugby game in Brisbane on Wednesday before being fined for providing false and misleading information to get across the Queensland border.

They have all since tested negative to COVID-19.

The last we heard from Atomos

Aside from its CEO's escapades, the only time we've heard from Atomos this month was on 30 June when the company released a trading update.

The update pushed the Atomos share price up to close 11.46% higher than its previous session.

The trading update announced record sales for the 2021 financial year. The company has brought in more than $77 million – 73% more than the previous financial year.

It also recorded more than $44.2 million worth of sales in the second half of the 2021 financial year. That's 275% more than the prior corresponding period.

Atomos share price snapshot

The Atomos share price has been performing well lately. It's gained 26% year to date. It is also 186% higher than it was this time last year.

The company has a market capitalisation of around $269 million, with approximately 218 million shares outstanding.

The post Why the Atomos (ASX:AMS) share price is up 23% in a month appeared first on The Motley Fool Australia.

Today's performance takes the 1-year Atomos share price gain to 146%.

Why is the Atomos share price racing higher?

Investors are pushing Atomos shares higher today following the release of a trading update. The update pertains to the company's full year FY21 results for the period ending 30 June 2021.

According to the release, Atomos now expects to deliver FY21 sales in excess of $77 million. This would be a record result for the company. It would also represent a 73% increase on FY20 sales, which came in at $44.4 million.

While first half's revenue was slightly higher than the previous year ($32.8 million versus $32.6 million), momentum built into the second half. Specifically, 2H FY21 sales are more than $44.2 million, up 275% on the prior corresponding period.

Commenting on the result, Atomos Executive Chairman Chris Tait said:

We are delighted to be providing an FY21 sales guidance upgrade to at least $77m which is $6.6m ahead of analyst consensus. This has been an amazing performance by everyone on the Atomos team. It seems a long time ago, when, at the beginning of FY21, staff were still furloughed, and monthly sales were tracking at $3m.

In addition to revenue growth, the company expects record full-year earnings before interest, tax, depreciation, and amortisation (EBITDA) of circa 9% of revenue. More value-orientated investors could be finding the Atomos share price appealing on this news.

What's next for Atomos?

Looking ahead, the company will conduct an investor day on 2 August 2021. The event will be held both online and in-person in Melbourne. Barring any COVID-19 restrictions, it will offer an opportunity for investors to meet the Atomos executive team.

Based on Tait's comments, Atomos also has a strong pipeline of new products and technologies in development to drive further growth.

Such innovation is part of the reason some analysts still consider Atomos a hold, despite the strong share price rally.

The post Here's why the Atomos (ASX:AMS) share price is surging 9% appeared first on The Motley Fool Australia.

Despite a rebound this month, the S&P/ASX All Technology Index (ASX: XTX) is still about 10% off its February high.

The trouble is that most high-flying tech companies are considered future-potential growth shares. The market is currently fearing a rise in inflation from the post-COVID economic recovery.

A rise in inflation can lead to higher interest rates, which are poison to stocks relying on the power of future earnings.

But despite this climate, there are still pockets of tech that Wilson Asset Management portfolio manager Tobias Yao has faith in.

"We still have a little bit of tech exposure, but our ideas are now concentrated on companies with reasonable PE multiples," he told a Wilson video.

"And these companies aren't COVID beneficiaries."

Yao looks after the portfolios of listed investment vehicles WAM Capital Limited (ASX: WAM), WAM Research Limited (ASX: WAX), WAM Microcap Ltd (ASX: WMI) and WAM Active Limited (ASX: WAA).

He named 5 stocks that fit the "reasonable" price-to-earnings criteria that these Wilson funds still hold:

Aristocrat Leisure Limited (ASX: ALL)

The company best known for its poker machines is these days earning significant revenue out of more modern channels.

"Actually over 50% of its business now is now online digital gaming," said Yao.

Aristocrat stocks were down 0.18% to trade at $40.84 on Friday afternoon. It started the year at $31.39.

Carsales.Com Ltd (ASX: CAR)

Yao was positive on the Australian online marketplace last month acquiring the US business Trader Interactive.

"We really like the recent acquisition, but also we like the transition [of] the transaction model going forward," he said.

"We think that's going to permanently lift the revenue growth profile over the medium term."

Carsales stocks were trading at $19.38 on Friday afternoon, which is down 2.66% on the year.

Codan Limited (ASX: CDA)

Wilson funds have "a large holding" in Codan, according to Yao.

"[It's] one of the global leaders in metals detection and communications hardware."

The company this month announced a deal to sell-off its resources technology provider brand Minetec to Caterpillar Holdings Australia.

Unfortunately, the market wasn't a big fan of the $14 million transaction, sending the shares down from its 52-week high reached in late May.

Codan stocks were going for $18.54 on Friday afternoon, which was down 1.38%.

Atomos Ltd (ASX: AMS) and Vista Group International Ltd (ASX: VGL)

In the small cap space, Yao revealed these were the two technology companies that survived his PE ratio cull.

"Atomos is an innovative monitor recorder business and Vista Group… is the leader in software solutions for cinemas."

Atomos shares are up 1.55% this year, while Vista has risen a whopping 35.7%.

"So there are definitely still pockets of opportunities, but it's fair to say we've become a lot more selective in where we deploy our capital."

The post Carsales (ASX:CAR) and 4 other ASX tech shares still worth holding: analyst appeared first on The Motley Fool Australia.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

There's also one called WAM Microcap Limited (ASX: WMI) which targets small cap ASX shares with a market capitalisation under $300 million at the time of acquisition.

WAM says WAM Microcap targets the most exciting undervalued growth opportunities in the Australian microcap market.

The WAM Microcap portfolio has delivered gross returns (that's before fees, expenses and taxes) of 24.7% per annum since inception in June 2017, which is superior to the S&P/ASX Small Ordinaries Accumulation Index average return of 10.5%.

These are the two small cap ASX shares that WAM outlined in its most recent monthly update:

Atomos Ltd (ASX: AMS)

Atomos is a business that provides digital imaging creation tools for video professionals. WAM explained that Atomos now creates 4K and HD Apple ProRes monitor-recorders, using by video professionals for content creation with lower production costs.

The fund manager pointed to its strongest six months in history, with $32.8 million in sales and $3 million of earnings before interest, tax, depreciation and amortisation (EBITDA) – this was a 210% increase year on year.

WAM was also impressed by the significant cash flow improvement which was growth of 133% to $4.3 million.

The fund manager said that the small cap ASX share has benefited from the large increase in video usage and production during the COVID-19 pandemic across the world.

Atomos is well placed to scale with $23.3 million of cash on its balance sheet and access to an undrawn $5 million working capital facility, according to WAM Microcap.

Universal Store Holdings Ltd (ASX: UNI)

The fund manager also likes Universal store, which was only listed a few months ago.

Universal Store has 65 casual apparel stores across Australia and New Zealand. Its main target audience is the 16 to 35 year old age bracket.

WAM explained that Universal Store sells a selected range of third party branded products – this makes up around 70% of revenue, it also has a range of private label products.

Just like plenty of other businesses, particularly in the retail space, Universal Store reported a record six month result in its FY21 half-year report. It made $31.5 million of underlying earnings before interest and tax (EBIT) – this was growth of 69%. This beat the guidance that was given in January 2021 of a range of $30 million to $31 million.

A key part of that growth was the online sales, which grew by 128% and represented 12% of the overall total thanks to options like 'ship from store' and click and collect.

With the company making a record result, it decided to repay its jobkeeper payments of $3 million.

In the second half of FY21, the small cap ASX share is expecting to open three new stores. It's looking to open more than 100 stores over time.

WAM Microcap is positive on the outlook for growth. It has a good net cash balance sheet of $22.5 million, with plans for expanding its private label brands and a disciplined pricing and promotional strategy.

The post Wilson Asset Management thinks these 2 small cap ASX shares are a buy appeared first on The Motley Fool Australia.

The ASX video technology company, which specialises in the development of monitor recorders for video content creators, has seen its share price surge from 93.5 cents at the beginning of this week to $1.08 at the time of writing.

These most recent gains add to a solid period of growth for shareholders. While not quite back to pre-COVID levels yet, the Atomos share price has soared more than 85% higher since the beginning of November.

What does the company do?

Atomos develops recording equipment for video professionals and digital content creators. It aims to create high quality, affordable products to help users easily create and edit high-resolution video. Its products are used on all sorts of projects, from wedding videos and web and TV commercials all the way up to feature films.

Atomos' video monitors are currently the only ones in the world capable of recording in Apple's ProRes RAW codec. A 'codec' is essentially a program that allows for faster file transmission through data compression. This technology gives small-time content creators the ability to easily record and share video in up to 8K quality.  

What was in the company's financial results?

Atomos reported record half-yearly sales of $32.8 million for the first half of FY21. Although this was only an increase of 1% over the prior comparative period, it was a significant uplift versus the second half of FY20, when the company only generated $11.8 million in sales.

Earnings before interest, tax, depreciation and amortisation (EBITDA) also came in at a record $3 million, an increase of 210% over the prior comparative period. This was due to disciplined cost savings during COVID-19, particularly from general administration and marketing expenses.

What's the outlook for the rest of FY21?

Like many companies operating in this current uncertain business climate, Atomos was hesitant to commit to firm earnings guidance for the remainder of FY21. However, the company said it expected "good progress" in the second half, building on the positive momentum already generated this year.

Commenting on the first-half results, Atomos executive chair Christ Tait said:

The record results that we have delivered across all financial metrics, highlight the fact that we have emerged from COVID-19 as a leaner and more efficient business.

Heading into 2H'21, we have a solid tailwind of sales momentum which will be further enhanced by new RAW enabled cameras coming to market, the result of substantial work by our product and development team, along with the roll-out of several new products including our streaming range.

The post The Atomos (ASX:AMS) share price is up 15% in a week appeared first on The Motley Fool Australia.

Let's look at some key information from the results this morning that spearheaded the price movement.

Why is the Atomos share price pushing up?

In the first half results released to the market this morning, Atomos reported its strongest half for sales in its history, notching up $32.8 million worth during the period. Atomos also posted its most profitable half on record, with earnings before interest, tax, depreciation and amortisation (EBITDA) up 210% to $3.0 million.

In its first-half FY21 investor presentation, the company pointed out the strong growth in activations of the Apple Inc (NASDAQ: AAPL) video format, ProRes RAW, that only Atomos is licensed to natively record. Activations reportedly grew fivefold in 12 months.

The cash flow positive half also added $4.5 million to the company, putting cash levels on the balance sheet at $23.3 million as of 31 December 2020.

Management also advised the company continues to invest in product development, including an anticipated software upgrade option that could provide another revenue stream for the business.

Second half in the frame for Atomos

According to management, sales momentum has carried into the second half. The company remains cautious of COVID-19 impacts on trade but expects continued good progress.

The company also noted that Jeromy Young would move to the role of founder, where he will focus on future products, partnerships, and growth opportunities. Chris Tait will remain in the position of executive chair.

On the structural change, Young commented:

With this new role I am very excited to be focusing my time on creating and developing new product and revenue ideas, getting back to more of what I used to do 10 years ago when I (and Ian Overliese) founded Atomos.

Over the past year, we have significantly strengthened our management team, which now puts us in a position where others can take over the daily administrative duties, leaving me to focus solely on growing Atomos into a much more substantial global company.

Atomos share price snapshot

At the time of writing, the Atomos share price is up 12.3% to $1.05. Even with today's dramatic jump, shares are still trading below their 52-week high of $1.315 and are down 24.6% for the year. For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 3.6% over the same period.

Including today's increase, Atomos now has a market capitalisation of $204.28 million.

The post The Atomos (ASX:AMS) share price is on fire today, up 12% appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are racing higher:

Atomos Ltd (ASX: AMS)

The Atomos share price is up 11% to $1.04 following the release of its half year results. The video technology company reported a small increase in revenue to a record $32.8 million for the half. Pleasingly, this was achieved despite a substantial reduction in marketing expenses, which supported a 19.3% decline in operating expenses. This led to the tripling of its operating earnings to $3 million.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The Bendigo and Adelaide Bank share price is up 8% to $10.23. This follows the release of the regional bank's half year results. For the six months ended 31 December, the bank reported total income growth of 3.3% to $849 million and cash earnings after tax growth of 1.9% to $219.7 million. This was driven by growth in its lending portfolios and an increase in hedging revenue, which offset a 7 basis points decline in its net interest margin to 2.30%.

Coca-Cola Amatil Ltd (ASX: CCL)

The Coca-Cola Amatil share price is up 2% to $13.40. Investors have been buying the beverage company's shares after it revealed that Coca-Cola European Partners PLC (NYSE: CCEP) has increased its takeover offer. According to the release, CCEP has revised its offer from $12.75 per share to $13.50 per share.

Nearmap Ltd (ASX: NEA)

The Nearmap share price has zoomed 12% higher to $2.42. This follows the release of the company's response to a short seller attack and the release of its half year results. In respect to the former, management refuted every single one of the short seller's allegations. As for its half year results, Nearmap reported annual contract value (ACV) of $112.2 million on a reported basis and $116.7 million on a constant currency basis. This represents a 16.1% and 21% increase, respectively, over the prior corresponding period. A record performance by the North American business helped drive this growth.

The post Why Atomos, Bendigo and Adelaide Bank, Coca-Cola Amatil, & Nearmap are racing higher appeared first on The Motley Fool Australia.

Three broker buy ratings that have caught my eye are summarised below. Here's why brokers think these ASX shares are in the buy zone:

Accent Group Ltd (ASX: AX1)

According to a note out of Citi, its analysts have retained their buy rating and lifted the price target on this footwear retailer's shares to $2.60. The broker lifted its price target after upgrading its earnings estimates to account for Accent's positive trading update. The broker believes there could be more of the same in the future and suspects that its stronger profit margins could be sustained. The Accent share price was trading at $2.44 on Friday.

ARB Corporation Limited (ASX: ARB)

Another note out of Citi reveals that its analysts have upgraded this 4×4 parts company's shares to a buy rating with a $34.25 price target. The broker made the move on the belief that ARB will benefit from robust car sales in Australia. In addition to this, the recent strengthening of the Australian dollar bodes well for its manufacturing costs in Thailand. The ARB share price ended the week at $31.37.

Atomos Ltd (ASX: AMS)

Analysts at Morgans have retained their add rating and $1.32 price target on this video technology company's shares following its trading update. According to the note, the broker was pleased with its better than expected sales during the first half. Atomos reported sales of $32.6 million, compared to prior guidance of $28 million. And while it notes that management didn't provide any earnings guidance, it did say that it expects to generate positive operating earnings for the first half. The Atomos share price ended the week at $1.04.

The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia.