Mauna Kea Technologies (ALMKT) H1 2024 & Q3 2024 TU earnings summary

Executive summary

• Revenue for H1 2024 declined 43% year-over-year to €3.9M–€4.3M, mainly due to a high base in 2023 from a one-time license payment and delayed system sales in the US.

• Net loss reached €4.7M versus a €2.8M profit in H1 2023, reflecting lower sales and absence of prior year exceptional gains.

• Q3 2024 sales grew 24% year-over-year, driven by new system sales in the US and Europe, and a 29% increase in consumables delivered.

• Operational focus included expanding CellvizioⓇ applications, launching CellTolerance for food intolerance, and strengthening partnerships in China.

• Reaffirmed guidance for 20% annual sales growth, excluding licensing revenues.

Financial highlights

• Product revenue fell 19% year-over-year to €2.9M; license revenue dropped 69% to €1.0M.

• Gross margin on product sales declined to 66% in H1 2024 from 77% in H1 2023, mainly due to lower US system sales and reduced CMS reimbursement.

• Operating loss widened to €3.7M from €1.1M; net cash from operations was -€3.8M.

• Cash and equivalents stood at €3.8M as of June 30, 2024, providing visibility through Q1 2025.

• Q3 2024 total sales (excluding license) reached €1.2M, up 24% year-over-year; 9M 2024 sales (excluding license) were €4.1M, down 10% year-over-year.

Outlook and guidance

• Targets over 20% growth in revenue excluding licenses for 2024.

• Plans to double CellvizioⓇ system production and reduce operating loss through cost control and business growth.

• Anticipates Q4 acceleration driven by US pay-per-use activity, new system placements, and CellTolerance expansion in France.

• Expects strong year-end activity, especially in US and China.

• Further sales gains expected in the US and Chinese joint venture.