The Uscom (ASX:UCM) share price plunged 6% today. Here's why

The Uscom share price tumbled today after the company released its quarterly cash report, showing falls across every major category.

| More on:
Two men react in shock at Evolution share price drop record profit

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Uscom Ltd (ASX: UCM) share price tumbled today after the company released its quarterly cash report, showing significant falls across every major category.

The Uscom share price was down 6% at the close of trade today, at 15.5 cents per share.

A quick take on Uscom

Uscom is a medical technology company engaged in developing, designing, manufacturing, and marketing premium non-invasive cardiovascular and pulmonary medical devices.

The company's geographical segment includes Australia, Asia, the Americas, Europe, and other regions. It generates maximum revenue from Asia.

The company offers USCOM 1A, a non-invasive hemodynamic monitor that measures cardiovascular function; BP+; a supra-systolic oscillometric central blood pressure monitor that measures blood pressure and blood pressure waveforms at the heart; and SpiroSonic, a pulmonary function testing device based on multi-path ultrasound technology.

Uscom's financial woes

For the third quarter of FY21, Uscom reported cash receipts of $0.89 million for the period, which is down 53% from $1.91 million in the preceding quarter, and at $4.2 million year-to-date with Q4 trading still ahead.

Uscom's sales revenue was $0.78 million, down 20% from $0.98 million in the previous quarter. This follows its record growth of cash receipts of 149% and sales revenue of 125% reported in the prior Q2.

For the current quarter, Uscom's global entity reported a net operating cash outflow of $0.25 million, while for Q2, cash flow was positive at $0.3 million. Uscom remains cash flow positive for the YTD with $2.03 million cash on hand on 31 March.

What did management say?

Uscom executive chair Professor Rob Phillips said that the future looked a lot brighter for the company.

Q3 sales and receipts remain strong but down due to the impact of the Chinese New Year, effecting China activity for 6 weeks, while both European and US activities remained constrained by the pandemic. Hungary has effectively been closed for the quarter and our US team are still unable to attend hospitals and clinics.

However, we remain cash flow positive for the YTD, supported by strong China sales. Going forward, management noted the 18.3% GDP growth in China for the March quarter and look forward to this growth converting into health spending.

Uscom share price snapshot

The Uscom share price has been tumbling for some time. It's down 11% over the past month, 3% since 2021 began and 26% over the past 12 months. 

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Healthcare Shares

Broker says this ASX 200 biotech stock is a top buy

Let's see what Bell Potter is saying about this biotech.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why CSL shares are a buy today despite the looming Trump tariffs

A leading expert believes CSL shares are still trading for a bargain today. Here's why.

Read more »

A businesswoman pulls her glasses down in shock to look at the bad news on her computer.
Healthcare Shares

Why did the Telix share price just crash 16%?

Investors are sending the Telix share price plunging today. But why?

Read more »

Broker analysing the share price.
Healthcare Shares

Expert: 2 ASX healthcare stocks to avoid before reporting season

Not all healthcare stocks are created equal.

Read more »

A group of people in a corporate setting do a collective high five.
Healthcare Shares

Should I buy Pro Medicus or CSL shares ahead of earnings season?

The ASX healthcare sector may be currently undervalued.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Healthcare Shares

Why Mesoblast shares can keep storming higher

More big returns could be on the way for buyers of this high risk stock according to Bell Potter.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »

couple having a happy discussion with a banker
Healthcare Shares

Expert: 4 ASX healthcare stocks to buy ahead of reporting season

Could these ASX healthcare stocks be good additions to your portfolio?

Read more »