Quarterly Activities/Appendix 4C Cash Flow Report
| Stock | HYDRIX Ltd (HYD.ASX) |
|---|---|
| Release Time | 28 Jan 2025, 9:32 a.m. |
| Price Sensitive | Yes |
Hydrix Services records profitable quarters, growth outlook
- Hydrix Services recorded consecutive profitable quarters
- Strong sales orders and pipeline support growth outlook
- Significant improvement in cash operating loss for 1HFY25
Hydrix Limited (ASX: HYD) released its Appendix 4C for the quarter ended 31 December 2024 (2QFY25) and provided a market update. The key highlights include:- Hydrix Services recorded consecutive profitable quarters, with a $0.24 million Cash Operating Profit (COP) in the quarter, a 138% improvement on the prior corresponding period (pcp). The COP for 1HFY25 was $0.42 million, compared to a $40k loss in the pcp.- Revenues for Hydrix Services were $2.7 million, 5% lower than pcp, while revenues for 1HFY25 were $5.6 million, 6.7% lower than pcp.- Contract sales orders for Hydrix Services were $4.3 million in the quarter, an 84% improvement on pcp, and $7.6 million in 1HFY25.- The company anticipates $40 million in potential future revenues from 15 active clients across various program stages.- Hydrix Medical continues to build its sales pipeline, which currently stands at more than $2.5 million in potential annual recurring revenue, including a software-as-a-service (SaaS) remote cardiac patient monitoring product.- The group's cash operating loss for 1HFY25 was $0.39 million, a significant improvement from the $2.09 million loss in the pcp.Hydrix's Executive Chairman, Gavin Coote, commented that the consecutive profitable quarters in the Services business reflect the company's efforts to convert sales opportunities and deliver complex new product development projects. The recent sales wins in strategic international markets demonstrate the momentum gained from the company's marketing and business development expansion overseas.
Hydrix Services recorded $5.6 million in revenues for 1HFY25, a 6.7% decrease from the prior corresponding period. The company anticipates $40 million in potential future revenues from 15 active clients across various program stages.
Hydrix is optimistic about its growth outlook, driven by the strong sales pipeline and momentum in its international markets. The company is well-positioned to build on its recent sales successes and lower fixed cost base.