Resonance posts healthy quarterly performance, boosts cash at hand figures
Resonance Health has increased its cash receipts by 25% in the December 2018 quarter.
Australian healthcare company Resonance Health (ASX: RHT) has posted positive financials for the December 2018 quarter demonstrating an upward trend in earnings since the previous corresponding period.
Cash receipts from customers totalled $907,000 for the quarter, representing an increase of 38% on receipts received in December 2017.
The figure also surpasses cash receipts received for the September 2018 quarter by 25%.
Total unaudited revenue for the December quarter was $1,017,000 – reflecting an increase of 16% compared to the September 2018 quarter and 30% compared to December 2017.
The company recorded a cash at hand figure of $2.14 million, equating to an an increase of $535,000 over the September quarter and including a research and development tax incentive refund of $328,000 for the work performed during the 2017/18 financial year.
The incentive is an Australian government initiative which grants cash refunds for 43.5% of a company’s eligible expenditure on research and development over a 12-month period.
The refund given to Resonance was related to ongoing studies on liver and metabolic disease, improvements to core services, and the finalised development of FerriSmart automated AI solution which measures liver iron concentration.
Performance highlights
Resonance has attributed its strong performance to a string of achievements during the December quarter.
Last month, the company received 510(k) regulatory clearance from the US Food and Drug Administration (FDA) for FerriSmart and paved the way for the product’s commercial distribution in the US.
In October, Resonance executed a $1.04 million work order with an undisclosed, NASDAQ-listed pharmaceutical company for the use of its FerriScan services in the company’s US-based clinical trial.
The work order boosted the total amount of clinical trial work announced in the 2018 calendar year to a combined aggregate of $3.38 million.
The FerriScan voucher program was renewed for 12 months at $38,840 by a separate and undisclosed pharmaceutical client for South Africa and Taiwan regions.
Ferriscan provides an accurate measurement of liver iron concentration through a non-invasive, magnetic resonance imaging (MRI) technology and has been internationally recognised as the gold standard test of its type.
Finally, a total 25 hospital and MRI centres signed service contracts with Resonance for the use of its products for clinical purposes or trials.
At midday, shares in Resonance Health were down 1.02% to $0.097.