Video technology developer Atomos (ASX: AMS) has upgraded its guidance for the 2019 financial year following stronger than expected sales from its recently launched monitor and recording devices.
The company, which only debuted on the ASX five months ago, is now expecting its financial year revenue to be in excess of $50 million, an 18.5% improvement from its prospectus forecast of $42.2 million.
It also upgraded its guidance for earnings before interest, tax, depreciation and amortisation (EBITDA), with second-half pro-forma EBITDA anticipated to be broadly in line with the first half at $700,000. This greatly exceeds the prospectus forecast of $300,000 for the full year.
In its announcement today, Atomos attributed the upgrade to several factors including stronger than forecast sales from its Ninja V recording monitor, which launched in September last year. Ninja V is the first product to be released on the Ninja platform, which is expected to include a suite of new products over the coming years.
Atomos said two other devices, the Shinobi 5-inch HDMI and SDI monitors launched in February and March, are already achieving stronger than forecast sales as well.
“The improved revenue and pro-forma EBITDA expectations reflect the strong customer response to both existing and new Atomos products and we are particularly pleased to exceed expectations in our first year as a public company,” Atomos chief executive officer Jeromy Young said.
“The company has worked hard during the past few years to create the underlying Ninja platform that we are now successfully leveraging across multiple products and market segments,” he added.
Mr Young said the company’s decision to lift its focus on capturing market share in the rapidly growing social video market was proving to be “very successful”.
Atomos noted that the strong technology sales were partly offset by continued investment in market development and product innovation as the company endeavours to double its product line over the next 12-24 months.
“In the prospectus, we stated a goal of doubling our product line during the next few years and we are well on track to deliver that goal,” Mr Young said.
Atomos shares climbed 23.21% on the news to $1.29 by midday trade.