Mauna Kea reported Q3/2018 financial results in line with our expectations. Total sales of €1.9m (4% YoY) were largely due to €0.8m consumable sales (31% YoY), of which €0.3m were associated with the new pay-per-use program (81% YoY). The reported 10% decrease in revenue from systems is associated with the revenue lag under the new consignment business model, which remains a key focus for Mauna Kea. We see the continued growth in installed base of consignment systems as a key performance indicator and expect recurring revenue from these new system placements to increasingly be realised in Q4/2018E, enabling the company to meet our FY2018E sales of €8.3m. Low utilisation of consignment systems represents the main risk, in our view, but we expect recent investments into the commercial infrastructure in the US to pave the way for sustainable future growth. We maintain and reiterate both our OUTPERFORM recommendation and €4.10 target price.
22 Oct 2018
Q3 sales indicate growing momentum
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Q3 sales indicate growing momentum
Mauna Kea Technologies SA Class O (0P5I:LON) | 0 0 0.2% | Mkt Cap: 75.0m
- Published:
22 Oct 2018 -
Author:
Martin Brunninger -
Pages:
5
Mauna Kea reported Q3/2018 financial results in line with our expectations. Total sales of €1.9m (4% YoY) were largely due to €0.8m consumable sales (31% YoY), of which €0.3m were associated with the new pay-per-use program (81% YoY). The reported 10% decrease in revenue from systems is associated with the revenue lag under the new consignment business model, which remains a key focus for Mauna Kea. We see the continued growth in installed base of consignment systems as a key performance indicator and expect recurring revenue from these new system placements to increasingly be realised in Q4/2018E, enabling the company to meet our FY2018E sales of €8.3m. Low utilisation of consignment systems represents the main risk, in our view, but we expect recent investments into the commercial infrastructure in the US to pave the way for sustainable future growth. We maintain and reiterate both our OUTPERFORM recommendation and €4.10 target price.