In the March quarter sales contracts executed were US$19.2 million, up 44% over the PCP. Revenue trails contracts signed for the company, with revenue for the quarter US$9.3 million (up 5% on the PCP). However, several contracts were signed late in the March quarter, with normally 17% of the contract value revenue received in the quarter the contract is signed.
Operating cashflow was strong, with US$9.3 million of cash receipts and US$3 million in positive operating cashflow. Cogstate expects EBIT for the full year to be in the range of US$8.8 - US$11.3 million.
The company's backlog of clinical trial work now totals US$104 million with revenue of US$34 million already secured for FY2023. Bioshares expects profitability to continue to grow as a greater proportion of revenue will flow through to the bottom line. It also has a guaranteed US$29 million to be received from its partner Eisai for minimum sales for its cognitive tests over the next 10 years.
Cogstate is capitalised at $352 million with US$24.6 million in cash at the end of March.
Bioshares recommendation: Buy
Cogstate CEO Brad O'Connor will be speaking at next week's Bioshares Biotech Summit (11-12 May).
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