• Revenue up 7% to $18.6m, but behind management forecasts
• Gross profit margin higher than prior period, but lower in Q2 due to discounting
• Expenses reduced by $3.1m, but non-recurring items impacted earnings

Atomos Limited reported its financial results for the six-month period ended 31 December 2024. The company achieved revenue of $18.6m, up 7% on the prior corresponding period (pcp), but this was behind management forecasts. Ongoing global economic headwinds and lower-than-expected sales of new products, the Ninja Phone and Sun Dragon, impacted revenue. Underlying margins were generally strong and higher than the pcp, but lower in Q2 vs Q1 due to discounting and promotions required to meet the market. Reductions in discretionary spend led to softening demand with increasingly price-conscious customers. The company's fixed cost base restructure is largely finalised, but cash outflows will continue into 2H FY25. There were a significant number of non-recurring items during 1H FY25 that will be outlined in a subsequent announcement. Atomos has sought additional loan funding and expects to make an announcement in this regard during March, which will likely include the novation of existing loans into a new secured loan facility. The financial statements have been prepared on a going concern basis, which is dependent on the successful completion of the loan refinancing and the Group adhering to payment plans agreed with key suppliers.