Atomos Limited (ASX:AMS) has upgraded its expectations for revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) for the 2019 financial year to June 30.
Revenue is now anticipated to be in excess of $50 million compared to the prospectus forecast of $42.2 million.
The second half of financial year 2019 pro forma EBITDA is anticipated to be in line with the first half of $700,000, in comparison to the prospectus forecast of $300,000 for the full year.
Shares up 29%
Investors have responded positively with shares up by as much as 29% to an intra-day high of $1.35.
Atomos chief executive officer Jeromy Young said: “The improved revenue and Pro Forma EBITDA expectations reflect the strong customer response to both existing and new Atmos products.
“We are particularly pleased to exceed expectations in our first year as a public company as we seek to deliver shareholder value.
“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.”
Atomos is a global video technology company delivering simple to use monitor-recorder content creation products.
These products give content creators across the rapidly growing social, pro-video and entertainment markets a faster, higher quality and more affordable production system.
Stronger than forecast sales
The upgrade to expectations can be attributed to several factors:
- Stronger than forecast sales from the Ninja V which was launched in September 2018;
- Stronger than forecast sales from two Shinobi devices, 5-inch HDMI and SDI monitors targeting the rapidly growing ‘social’ segment of the video market, which was launched in February and March 2019; and
- In part offset by continued investment in market development and product innovation.
Young added: “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 on that goal with four new products having been announced during the last nine months.”