By Pitt Street Research<\/p>\n
Strong sales growth, solid new bookings<\/span><\/span><\/span><\/strong><\/p>\n Sensera Limited ((SE1)) achieved revenues of US$3.8M in 4Q19 (June quarter), which is the biggest quarterly revenue number to-date for the company (Figure 1).<\/span><\/span><\/span><\/p>\n Total revenues of US$10.2M in FY19 were up 60% year-on-year. While they fell just short of the US$10.5M-US$11M guidance, the company cited customer delivery timing cut-offs towards the end of June as the reason for the shortfall of several hundreds of thousands in revenues.<\/span><\/span><\/span><\/p>\n Additional capacity has been put in place in the meantime to be able to meet the company’s current revenue opportunities.<\/span><\/span><\/span><\/p>\n US$3m in new bookings per 26 July<\/span><\/span><\/span><\/strong><\/p>\n The company recorded solid new bookings for July resulting in a backlog that already covers more than 50% of the company’s 1Q projected revenues with the balance expected to be booked in the remainder of the quarter. Bookings are roughly split 50\/50 between MEMS and Nanotron, which we believe reflects well-balanced growth for SE1.<\/span><\/span><\/span><\/p>\n On the MEMS side of the business, the fast-growing Medical segment is by far the largest contributor to the backlog at around 75%. This is largely due to the design wins that SE1 achieved over the last 18 months with customers like Abiomed.<\/span><\/span><\/span><\/p>\n Valuation range of $0.50–0.58 per share unchanged<\/span><\/span><\/span><\/strong><\/p>\n SE1 is expected to report its full set of FY19 results towards the end of August. In the meantime, we leave our DCF-based valuation range of A$0.50–0.58 per share unchanged. The minor shift of revenues from 4Q19 into 1Q20 doesn’t change our long-term view and valuation of the company. <\/span><\/span><\/span><\/p>\n Moreover, we believe the new distribution agreement with Arrow can potentially be a very strong, additional, driver of revenue growth.<\/span><\/span><\/span><\/p>\n Download the full report<\/strong><\/p>\n Earlier today the report above was released by Pitt Street Research for which FNArena is a partner in distribution. The full report can be accessed here:<\/p>\n https:\/\/www.fnarena.com\/index.php\/pitt-street-research\/SE1\/<\/a><\/p>\n Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n