The Ai-Media Technologies Ltd (ASX: AIM) share price is having a woeful week on the back of a concerning research report issued by Morgans. This led the global media access provider's shares to tank 20% yesterday.
At the time of writing, Ai-Media shares are down a further 9.68% to 70 cents today. In total, the company — which provides live and recorded captioning, transcription, and translation services — has shed almost a third of its market value over two days.
What's going on with Ai-Media?
Following Ai-Media's annual general meeting presentations, leading Australian investment firm Morgans released an uncommissioned research report on 12 November.
The report revealed forward-looking financial projections for FY22. It stated that revenues would come to $61.6 million, revised from $70.5 million from the last research report in August. Additionally, group earnings before interest, tax, depreciation, and amortisation (EBITDA) are forecasted to be $0.6 million, down from $9.6 million. The Ai-Media share price has been spiralling since the report's release.
Ai-Media responded to the report today saying it has not published any earnings guidance for FY22 or beyond.
The company said it felt the need to respond to the report given the extreme volatility in its shares.
Despite registering an operating cash-flow loss of $0.025 million for the first quarter of FY22, Ai-Media is aiming for a turnaround. It hopes to achieve a positive operating cash flow for the remainder of FY22 and onwards.
The strategy is to increase revenue from services to higher-margin recurring software-as-a-service (SaaS) revenue. This is to be driven by iCap benefits through the newly-launched SubSilo platform.
Ai-Media is continuing to invest in its product suite and technology to take advantage of the global growth opportunities. Earlier this month, the Indian government announced it will set live captioning standards, accelerating potential revenue streams.
Ai-Media share price summary
Ai-Media shares are down by more than 30% over the past 12 months. It is a far cry from when the company's shares reached a 52-week high of $1.15 in late October.
Based on today's price, Ai-Media commands a market capitalisation of roughly $162 million and has approximately 209.51 million shares outstanding.
