Nanosonics Ltd. (ASX: NAN) has today released its cash flow statement for the quarter ended 31 March 2015, reporting sales that were in line with expectations and that significant progress had been made in its North American operations.
So What: Nanosonics is a leader in infection control solutions with an enormous runway for growth. Hospital acquired infections are a major health issue and are the cause of thousands of deaths around the world each year. Many of these infections are acquired through imaging probes which are sometimes not cleaned sufficiently by staff members or others to prevent infections.
Nanosonics' sole product, the Trophon EPR, costs around US$11,000 per unit, but significantly reduces the chance of human error, and thus the chance of infections being spread. The company reported that it has now installed over 4,500 Trophon EPR units in North America (of a potential 40,000), up from 4,000 units at the end of the last quarter. It is also now represented in 44 of the top 50 hospitals and more than 1,600 hospitals in total across North America.
As was expected to occur due to the transition toward direct sales operations, sales of the unit slowed during the quarter to $3.742 million. Meanwhile, the company was cash flow positive during the quarter and ended the period with $51.542 million in cash, up from $23.529 million three months earlier due to a successful Placement and Share Purchase Plan.
Commenting on the result, CEO and President Michael Kavanagh said: "This quarter has been one of significant achievement for Nanosonics… The establishment of Nanosonics' direct operations in North America is progressing ahead of plan and will be fully operational by the end of Q4."
Now What: While North America is Nanosonics' major market, the company also has a presence in Europe, Australia and New Zealand, all of which are making 'good progress'.
Although Nanosonics' shares have more than doubled over the last 12 months at $1.66, they have pulled back since hitting an all-time high of $2.02 in March. Investors could certainly look to take this opportunity to build a position in the company, which appears to have a bright future ahead of it.
