Volpara Health shares dip as losses, revenue grows
Health & Biotech
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Volpara Health Technologies (ASX:VHT) shares have dipped slightly as the Kiwi breast density Software-as-a-Service company said its half-year loss widened to $NZ8.9 million ($8.4 million), up 11 per cent from the same time a year ago.
But Volpara’s revenue fox the six months to September 30 was also up, by 38 per cent to $NZ9.5million ($9 million).
“Despite coronavirus we’ve been able to grow revenue a significant amount,” Volpara chief financial officer Craig Hadfield told analysts on a Zoom call.
Chief executive Dr Ralph Highnam said on that same call that the US Food and Drug Administration had delayed imposing a possible rule that would require American women be informed about their breast density when they have a mammogram, although the company is hopeful it might be announced by Christmas.
Volpara makes artificial intelligence software that scores breast density as an A, B, C, or D. Dense breasts can hide cancerous tumours on mammograms.
The US-focused company declined to give formal guidance given the uncertainty around the pandemic, which at its height had cut the numbers of US mammograms being performed by about tenfold.
“There is an end in sight,” Dr Highnam said, noting the vaccines, “and as we to get towards that end and things start opening back up again, our aim as a company is to be in a very strong position indeed when reality starts to resume sometime next year.”
Morgans said the results were in line with expectations and the stockbroker remained positive on Volpara.
At 10.45am on Wednesday, Volpara’s shares were down 3.8 per cent to $1.385 – down from over $1.80 at the start of the year, but up from around 80c at the height of the market crash in late March.