Uscom Quarterly Report at 31st March 2020
Profit $0.74M, Cash Flow Positive $0.87M, and Debt Free
Record Cash Receipts up 135% to $2.00M
Record manufacturing with increasing cash on hand
Uscom China First Operating Quarter - Profitable
China Government Recommends USCOM 1A for Treatment of Severe COVID-19
Uscom Limited today released its Appendix 4C – Quarterly cash flow report for the period ended 31st March 2020 (The Quarter). All results in the attached 4C are in Australian dollars and compared with prior corresponding period (pcp).
Highlights
*Cash on hand Q2 to Q3 2020
- Profit $0.74M - up $0.96M from pcp(lossof $0.22M)
- Operating cash inflow $0.87M - up $1.39M on pcp (outflow $0.52M)
- Receipts from customers $2.00M - up 135% on pcp ($0.85M)
- Cash on hand $2.41M – up $0.93M on Q2 ($1.48M)
- Uscom China profitable in 1st operating quarter
- Record quarterly manufacturing
The Uscom 4C for Q3 FY 2020 reports a profit of $0.74M, up $0.96M from pcp loss of $0.22M. Total cash receipts for the period were $2.0M, up 135% from $0.85M in the pcp. Net operating cash inflow was $0.87M, increased from pcp outflow of $0.52M, with cash on hand increased by $0.93M from $1.48M to $2.41M at 31st March. This was Uscom China’s first operating quarter and it reported a profit.
These results reflect the initial impact of a restructured sales and marketing strategy adopted over the last 12 months across China, Europe and the US. The restructure involved increasing the depth of distribution and per unit margins. It also reflects the first of the increased sales related to COVID-19 ICU upgrades in China, with 51 units ordered for emergency installation since the 26th January when the first COVID-19 specific USCOM 1A was commissioned in Shandong. A number of tenders for COVID-19 and other applications remain active.
While the Chinese response to COVID-19 has been rapid and decisive, the European and US Governments have been slower. However increased USCOM 1A sales are anticipated as Governments worldwide recognise the benefits of strategically upgrading ICU facilities to deal with the next wave of serious seasonal infections. Uscom has specialised in the management of infectious diseases of all types over the last 15 years, and the COVID-19 pandemic has only highlighted the importance of the USCOM 1A in all infectious disease environments.
Uscom sees the COVID-19 pandemic as supplementing an already strong growth business model based on advanced haemodynamic care in infections, heart failure, pregnancy, hypertension, post-operative care, anaesthesia and fluid management in adults and children.
Executive Chairman of Uscom, Professor Rob Phillips said “Strong and continued growth, sound operating fundamentals, and outstanding science is our path to becoming a billion-dollar global health tech company. Our first profitable and cash flow positive quarter, and the first operational quarter for our new Uscom China subsidiary demonstrate decisive steps forward. This was also the quarter in which the USCOM 1A received direct recommendation from the National Health and Medical Commission of the People’s Republic of China to be used in the treatment of severe COVID-19 cases in adults and children. The USCOM 1A was also recommended by the International US based Society of Critical Care Medicine Guidelines for the treatment of sepsis in children. Both are outstanding clinical endorsements of our USCOM 1A and provide foundations for our sales team to accelerate adoption worldwide. We also have 7 additional devices in regulatory approval processes around the world which will be fed into our expanding global distribution network to supplement revenue as they are approved throughout this year. Uscom is more than a simple COVID-19 company; we are leaders in non-invasive cardiovascular and pulmonary medical devices with multiple life-saving technologies – COVID-19 is just one of our many critical clinical applications.”
Uscom manufactures and markets the USCOM 1A, the Uscom BP+, and the Uscom SpiroSonic digital ultrasonic spirometry technologies. These premium digital devices are changing the way we diagnose and treat cardiovascular and pulmonary diseases. The USCOM 1A provides vital guidance for optimising management of sepsis and the administration of fluid, inotropes and vasoactive therapies in critical care monitoring. The BP+ SpiroSonic devices improve diagnosis and management of hypertension, heart failure, asthma, COPD and sleep disorders in the clinical and home care environments.
Note: Q3 customer receipts were previously estimated to be $2.14M not $2M as reported here. The original was an estimate, but some customer receipts fell outside the current reporting period and will be reported in the Q4 accounts.