The Atomos Ltd (ASX: AMS) share price is heading north this morning after the company announced a positive sales update.
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.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Atomos Ltd. The Motley Fool Australia has recommended Atomos Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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