What Investors Need To Know About Revasum’s March Quarter Operational And Financial Updates

What Investors Need To Know About Revasum’s March Quarter Operational And Financial Updates

 is from the information technology sector and specialises in designing and manufacturing equipment to be utilized in generating semiconductor devices. The company makes products for critical growth market including automotive, IoT, and 5G.

Operational Update

As per the company’s announcement dated 16th April 2019, it provided operational updates for the quarter ended 31st March 2019. In March 2019, the company made a significant change in its top management and senior positions. The company appointed Kevin Witt who has more than 25 years of experience in the same industry, for the role of Sr. Director of Product Management. He will take the responsibility of the management of RVS’s Chemical Mechanical Planarization (CMP) products.

Also, Scott Prengle who has more than 30 years of experience in the semiconductor manufacturing equipment industry, had been appointed as Director of Product Management. He will be responsible for the management of Revasum’s Silicon Carbide (SiC) products.

March 2019 Cash Flow (Unaudited)

On the cash flow front, the company’s receipts from customers stood at US$8.7 million in the March 2019 quarter, which is more than double of the reported number of US$4.1 million in Q418. On 31 March 2019, the company’s net operating cash flow stood at US$2.4 million which included payments of US$0.5 million of IPO-related transaction costs. Net financing cash flows were nil at the end of the quarter, whereas, the Net investing cash outflows were of US$2.3 million, which includes capitalised product development costs of US$1.7 million, associated with company’s purchase of property, plant, and equipment etc. worth US$0.4 million.

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At the end of the quarter, the cash balance with the company was US$19.8 million (unaudited) and had no debt.

1H19 Production, Delivery, and Revenue Outlook 

The company currently expects total revenue of US$15 million to US$16.5 million for 1HFY19, which is based on current production schedules and booking forecast. This is significantly lower than the US$20.5 million forecasted total revenue, which was mentioned in the IPO Prospectus for the period.

The president and CEO of the company, Jerry Cutini stated that he was pleased with the continued progress of the company, but was also disappointed with the delivery delays, which will impact the 1H19 sales. The company is on track to launch its first major new product in 2H19, into an end-market that is rapidly growing in demand.

Financial Performance

On 26th February 2019, the company released its FY18 results. It recorded a revenue of US$27.3 million in 2018, which was up by 118% from the previous year. It slightly fell short by US$0.2 million compared to US$27.5 million IPO prospectus forecast. A cash balance of US$24.46 million was in the balance sheet with no debt at the end of the reporting period. The company stood very close to the IOP prospectus forecast on almost all front.

Further, the company also announced about the change of interests of its substantial holder IOOF Holdings Limited from 12 April 2019. IOOF Holdings Limited now holds 9,343,309 votes with 12.206% voting power. Before the change of interests, it held 8,487,373 votes with 11.093% voting power.

Technical Outlook

The market capitalisation of the company is A$100.28 million. The stock fell by 1.1% and closed the day at A$1.295, after making an intraday low of A$1.255 as noted on 16th April 2019. In the last three months, the stock has delivered a negative return of 22.9% while YTD return stands at negative 25.14%.


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