Lidco product revenues grow despite migration of customers to SaaS platform
Hemodynamic monitoring company Lidco saw product revenues grow in the first half of its trading year despite many of its biggest UK customers transitioning to the group's Software-as-a-Service High Usage Programme business model.
FTSE AIM All-Share
754.69
16:50 24/04/24
Health Care Equipment & Services
11,761.33
17:09 24/04/24
LiDCO Group
11.75p
16:35 08/01/21
While the moving of several key clients to its SaaS model was expected to defer revenues, Lidco witnessed a 10.0% increase in product revenues to £3.33m, which was slightly above even its own expectations.
HUP revenues increased 119.0% to £800,000, while US revenues were up 47.0% to £900,000. UK revenues declined 8.0% to £1.61m due to the timing of certain large orders and the company's decision to transition another four of its largest customers to the HUP business model.
Although the AIM-listed company turned in a 4.0% drop in total revenues to £3.51m, Lidco believed that it was maintaining its leading share of the UK hemodynamic monitoring market.
Net cash outflow was down 57% to £530,000.
Chief executive Matt Sassone said: "It's been a good start to the year that has enabled us to transition more UK customers to HUP.
"With HUP gathering more momentum, we are focussed on achieving a strong second-half performance as the business moves progressively towards breakeven."
As of 1035 BST, Lidco shares had picked up 2.53% to 4.05p.