Atomos (ASX:AMS) Drops FY22 Revenue Guidance Due to Slow Sales – The Market Herald

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  • Atomos (AMS) revises FY22 revenue guidance after slower-than-expected Q1 sales
  • In its FY22 first-half results, AMS forecast annual revenue of more than $95 million, but that was downgraded to between $80 million and $90 million.
  • EBITDA was also between 12 and 15%, but the company now expects between 6 and 8%.
  • While Interim CEO Trevor Elbourne says the review is disappointing, the company has received several awards for its new products and expects a strong fourth quarter
  • Shares of the company fell 43.3%, trading at 34 cents

Atomos (AMS) is revising its FY22 revenue guidance after slower-than-expected first-quarter sales.

The video technology company lowered its expected revenue for this financier to between $80 million and $90 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) of between 6 and 8 percent.

In its first-half earnings announcement in February, the company valued FY22 revenue at more than $95 million and said EBITDA was on track to reach between 12% and 15%.

Atomos blamed the disappointing sales seen in the first four months of the calendar year on a change in its marketing approach and less promotional activity.

He said that approach was corrected in April and that management implemented new strategies that it hopes will result in outperformance against revised revenue guidance.

The COVID shutdowns in Shanghai haven’t helped the situation, with the short-term production schedule of an as-yet-unannounced product likely to be affected. Atomos has scheduled this product to ship next month and has factored the delay into its revised guidelines.

“It is extremely disappointing to revise our guidance for FY22, especially given the strong sales results achieved in the first half of FY22,” said interim CEO Trevor Elbourne.

However, the company has launched new cloud products and services that it says received “outstanding” reviews and multiple awards at the National Association of Broadcasters trade show in Las Vegas.

“The response we’ve had to NAB this year from all sides has been so positive that I would say it’s the most successful NAB for Atomos that I can remember,” commented Mr. Elbourne.

“With these new products on the market and the appropriate promotional levers reactivated, we anticipate a strong fourth quarter that will ensure that we maximize sales of our physical devices and, therefore, adoption of the new connected ecosystem.”

For fiscal 2023, the company confirmed its previous annual recurring revenue guidance of $3 million and expects double-digit EBITDA margins.

Shares of the company were down 43.3%, trading at 34 cents at 1:49 p.m. AEST.