The Oventus Medical Ltd (ASX: OVN) share price moved higher today, jumping 7.32% to 22 cents a share at the time of writing.
The Oventus share price was sent flying after the medical device company released its half-year results for the period ended 31 December 2020 (1H FY21).
Image source: Getty Images
Oventus reports strong financial results
The company reported a 192% increase in booked revenue compared to the prior corresponding period (pcp), with booked revenues coming in at $550,000 for the 1H FY21 period.
Cash receipts totalled $415,000, which was a 109% increase over the pcp.
Oventus held $4.8 million in cash and cash equivalents at the end of the period. This compares to $6.2 million at the end of the pcp.
The company reported a loss for the first half, totalling $4.7 million. This is an improvement compared to the loss reported for the six months ended 31 December 2019, which was $5.1 million.
Overall, Oventus has accumulated losses of $37.3 million. However, the business notes that as of 31 December 2020, its current assets exceed its current liabilities by approximately $3.6 million.
A government stimulus of $265,243 was granted to the company during 1H FY21 to help it maintain staffing levels in Australia and Canada during the coronavirus pandemic.
CEO Commentary
Oventus founder and CEO, Dr Chris Hart commented on the company's performance:
We are very pleased with how our Lab in Lab model has performed through what has been one of the most volatile and unprecedented respiratory pandemics in history. Despite the significant hampering of footfall across North America, we've still managed to grow device sales by 143% when compared to the same period last year.
Looking ahead, he added:
Based on what we currently know and correlated with a drop in the rate of infection, we see an improved outlook for physical patient appointments in North America. To protect ourselves against further volatility, our homecare extension of Lab in Lab has been elevated and we've just launched a new direct to consumer site, goPAPfree.com, where patients in North America can access treatment completely virtually.
This fully virtual model is the same one that is being made available to VGM's member-base. While it's a nascent part of our business, with very low patient acquisition costs, no CAPEX, higher margins and no physical barriers, we expect the homecare model to become a very exciting part of our strategy.
Oventus share price snapshot
Oventus is a medical device company focused on treating sleep apnoea and snoring.
The company's market capitalisation is $32.4 million. There are 158.3 million shares outstanding.
The Oventus share price is up by 4% in 2021, but has fallen 68.7% over the past year
