Allegra researches, develops and manufactures medical devices including prosthetic implant tools.

Here's a summary of the half-year results that led to today's gain.

Allegra reports loss and share price goes up

In the results, the company advised that revenues from ordinary activities fell 1.6% to $2.3 million during the first half of FY21.

Allegra attributed this loss to travel restrictions and a higher appointment cancellation rate brought on by the coronavirus pandemic.

That said, commissions revenue was up for 1H FY21 coming in at $97,378 compared to the 1H FY20 earnings of $45,487. That's a 114% jump.

Revenue from the sale of goods was 4% lower at $2.2 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) zoomed up 122%, landing at $129,499 for the period. This compares to a loss of $582,293 for the previous corresponding period. 

The company's basic earnings per share (EPS) was negative 11 cents per share for the 1H FY21 period. EPS was negative 82 cents a share for 1H FY20.

At the end of 1H FY21, Allegra held $273,767 in cash and cash equivalents. This isn't far off the $287,878 held at the end of 1H FY20.

Device update

The company also advised today that the revised design of its Sr-HT-Gahnite spinal cage device had been well received. Results from an accredited US testing facility put the new cage design "above the 95th percentile for published data on FDA approved cages".

The revised design also successfully passed testing that involved dynamic torsion and dynamic compression shear tests applied to the spinal cage. The company believes these results confirmed the effectiveness of the new design.

Allegra continues to progress toward US Food and Drug Administration (FDA) approval to conduct a large animal study applying its updated technology.

Snapshot of the Allegra share price

The Allegra share price has soared 200% higher over the past year. However, year-to-date, it has dropped 11.4%.

The company's market capitalisation is $32.4 million and there are presently 104.5 million shares outstanding.

The post Allegra (ASX:AMT) share price lifts 6% after reporting loss appeared first on The Motley Fool Australia.

During morning trade, the Allegra share price reached as high as 46.5 cents. However, after some profit taking, the company's shares have settled back to 37.5 cents at the time of writing, up 20.9%.

What did Allegra announce today?

Allegra advised that it conducted additional testing on its Spinal Cage, following earlier test results disclosed on 4 December. The additional round involved dynamic torsion and dynamic compression shear tests designed to examine the Spinal Cage's durability. 

Torsional tests involve applying a twisting stress to an implant, which measures its ability to withstand twisting motions. Shear tests involve applying a sliding stress to the implant, which measures the ability of the implant's internal layers to resist fracture in any one direction.

The outcome of the assessment saw Allegra's key product pass its tests without any signs of stress fractures or failure. In light of the combination of positive tests achieved, Allegra stated it on track to commence a pilot animal study. The trial will use the new spinal cage design on animals from next month in Australia.

Once completed, the study will follow a much larger animal trial which will seek to meet United States Food and Drug Administration requirements. This is needed to launch the Spinal Cage into the United States market.

What did the CEO say?

Allegra CEO Ms Jenny Swain commented on the achievement:

We are extremely encouraged by the results achieved from the complement of compressive testing. These results validated the enhancements made to the spinal fusion cage design have been effective. We are looking forward to the pilot animal study commencing late January, followed by the progression to a large animal study.

How has the Allegra share price performed?

The Allegra share price has been on tear over the last 12 months, rising 114%. Amid the solid gains, investors have witnessed sharp and sudden spikes, with the Allegra share price reaching a low of 8.7 cents in June, before shooting up to an all-time high of 84 cents the following month. This surge was based on the news that Allegra would acquire Sr-HT-Gahnite patents from the University of Sydney.

The post Why the Allegra (ASX:AMT) share price is rocketing 20% higher today appeared first on The Motley Fool Australia.