dorsaVi Ltd Announces Operational Changes To Reduce Its Expenses And Optimize Cash Reserve

dorsaVi Ltd Announces Operational Changes To Reduce Its Expenses And Optimize Cash Reserve

Medical technology company, dorsaVi Ltd (ASX: DVL) is planning to make some operational changes to reduce its operating costs, build revenue and sales capability, and optimize cash reserves.

In an announcement made on 15 March 2019, the company has disclosed the results of an internal review following the release of its half-year financial results. As part of its review process, the company has announced initiatives to reduce its expenses and optimize its cash reserves.

It is expected that the company’s cash outflows from operating activities will reduce by 30-40% compared to the 1st half of FY19.

To reduce its cash outflow, the company has announced a voluntary reduction in senior management salaries. The company’s CEO, Mr. Andrew Ronchi has agreed to reduce his salary and benefits from USD$310,000 to USD$221,500. Andrew remains committed to the goals of building the US market through strategic deals and increased recurring revenue. In order to improve its cash reserves, the company has announced a reduction in corporate and marketing overheads. To further reduce it cash outflow, the company is optimizing the spend on new development within the company technical team, which reflects a focus on enhancing dorsaVi’s core products in the marketplace and tuning the product platform for large multi-national company applications, rather than pursue new applications.

As a result of these changes, the staff numbers have been reduced in corporate and support services while the Company maintains a focus on building revenue and sales capability. Further, the company’s technical team will now be focusing on enhancing the existing product portfolio rather than developing additional products. According to the company’s announcement, these changes are aligned with its strategy to prioritize the US market and to increase direct sales capability in the US workplace and clinical market.

The Company intends to expand its sales, product development, and support capabilities in a measured way as its recurring revenue base increase over time.

To support these initiatives, the Company’s non-executive Directors have resolved to accept options in lieu of directors’ fees applicable from 1st March 2019.  Subject to shareholders approval, the number of options which are going to be issued, will be determined on the last day of each quarter by dividing the current board remuneration owing to each non-executive director by the closing share price on that day.

In the recently released half-year results, the company reported growth of 68% in its recurring revenue which has reached to $659k in H1FY19 as compared to $393k in the previous corresponding period (PCP). The company reported an after-tax loss of $1.91 million in 1H FY19 as compared to $1.97 million in PCP.

In the past six months, the share price of the company decreased by 58.23% as on 14 March 2019. DVL’s shares traded at $0.035 with a market capitalization of circa $7.14 million as on 15 March 2019 (AEST 03:11 PM). It has 52 weeks high of $0.217 and 52 weeks low of $0.032.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Top 25 Dividend Stocks To Consider

People prefer a dividend stock in their portfolio as it possesses the feature of compounding. Compounding means that the earning which is generated through these dividend stock will get reinvested and will eventually create earnings from earning. More precisely, the dividend generated from these dividend stock will get reinvested to buy another set of a share of the dividend stock which results in giving a higher dividend.

Click here to download your top 25 dividend stocks report!

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report


Please enter your comment!
Please enter your name here