Tech: Atomos is up 20pc on news influencers may actually influence
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Influencers are widely considered a millennial scourge on society, except for their followers and the people who sell them cameras to capture the money shot.
But influencer-friendly camera equipment shop Atomos (ASX:AMS) says it’s about to make almost 20 per cent more money in fiscal 2019 than it speculated in the December IPO prospectus, thanks to social media.
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Full year revenue is now expected to come in at $50m compared to a forecast $42.2m. Last year, revenue was $35.6m. Shareholders liked the update:
The reason why are influencers, or as they’re known to Atomos, social content creators.
An influencer is a person who develops and uses their brand on social media to sell products and services. At the bottom end are bloggers in it for a free meal, at the top end are people who create marketing campaigns for businesses.
Sales of two new devices targeting the social market, the Shinobi 5-inch HDMI and SDI monitors, were stronger than expected as was a RAW video recording add-on called Ninja V.
Atomos joined the ASX in December and instantly proved a hit with snap-happy investors, with software and equipment which lets digital filmmakers record and edit in the field.
Its products are priced so amateurs can afford them and social content creators — “consumers, prosumers and low-end professionals” – are one of their three main markets.
But its main drawcard are partnerships with brands like Apple and Adobe to build hardware add-ons for cameras made by Canon, Sony, Nikon, Panasonic and JVC.
In January, Atomos resolved a patent dispute brought by the maker of the ‘camera that changed Hollywood’.
Atomos has signed a royalty-based licence agreement with Red covering some patents.
Red alleged Atomos breached its patent on the recording or playback of two RAW formats used in Atomos products, ProRes RAW and CinemaDNG. Atomos settled by signing a royalty agreement over future sales.
A new shareholder is beginning to turn the grey old lady of clotheslines, Hills Hoist inventor Hills (ASX:HIL). A review has found $5m in spending it can cut over the next two financial years and the company has launched a strategic review of its various divisions. Perth dealmaker Merchant Group bought in during March saying it wants a seat on the board to push through some changes faster.
Clotheslines are no longer Hills’ beat — it sold the rights to make and sell the product invented in Adelaide in 1945 to gardening product manufacturer AMES Australasia in 2017 — and has delved more into security and health services. Merchant boss Andrew Chapman said at the time he wanted to see some businesses spun out — the health ones that deal in nurse calls and patient engagement appeal to him on that front — and institute some capital management changes.