The Catapult Group International Ltd (ASX:CAT) share price fell 4% to $1.94 this morning after the company released its quarterly report.
Revenue of $61 million was at the bottom of the $61 million to $65 million range provided at the annual general meeting in November 2016. Cash flows were still heavily negative, with the business burning a shade over $8 million on operations and investment.
Thanks to a $19 million capital raising, Catapult is well-funded with $17 million in the bank, and management expects it should deliver an operating profit for the 2017 financial year. Recurring revenue in the Elite Wearables business also grew, up from 57% to 62% of sales. Overall, Catapult is making respectable progress, although this quarter didn't contain an update on the Prosumer market, which is the company's biggest target by far.
It looks as though investors were a bit frustrated this morning with the slow growth that Catapult had achieved, however, with revenue continuing to grow at a decent clip, recurring revenue increasing, and the prospects of taking market share in the Prosumer market, Catapult could be an interesting if high-risk company for the watch list. Catapult releases its full-year results on August 30 and we'll have full coverage of its results.
