27th Sep 2021 10:39
(Alliance News) - Microsaic Systems PLC on Monday reported a widened interim loss despite a rise in revenue.
Shares in the company were trading down 9.0% at 0.22 pence each in London on Monday morning.
Surrey, England-based Microsaic is a technology company that develops mass spectrometry instruments for the pharmaceutical industry.
In the six months ended June 30, the company's pretax loss widened to GBP2.1 million from GBP1.5 million a year ago and GBP1.6 million two years earlier.
Revenue rose sharply year-on-year to GBP499,285 from GBP71,992. Income remained 52% above the GBP328,428 reported in the first half of 2019, before the pandemic. The last time Microsaic reported higher interim revenue was in 2014, when it took GBP610,985.
Sales costs jumped to GBP327,932 in the first half from GBP33,697 - equivalent to 66% of interim revenue this year, from 46% the year prior.
Due to a change in the product mix, gross margin was 34% in the first half, compared to 53% in the same period last year.
Based on its sales pipeline, the company said it expects the sales momentum from its first half to continue into the remainder of 2021.
Later in the year, Microsaic expects to sign full agreements with its Chinese partners, Jiangsu Henzhihe Technologies Co Ltd, for the assembly, distribution and servicing of its product in China.
In 2022, the company plans to acquire a medical device licence in China for therapeutic drug monitoring to complement its agreement with Jiangsu Henzhihe.
In the second half, Microsaic said it expects to launch a new detection platform for a wider range of water containments.
Chief Executive Glenn Tracey said: "The new commercial strategy of collaborating, partnering and revenue sharing is moving the company away from equipment-only sales. Microsaic is now focused on offering integrated real-time data analytics with AI alongside our mass spectrometry hardware, providing complete, value-adding solutions such as in-field environmental testing and on-site human diagnostics.
"The change in strategy and business model has already opened up new market opportunities and applications for our differentiated technology solutions, and demonstrated solid evidence of sales growth which is expected to continue [into the second half]."
By Scarlett Butler; [email protected]
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