Mauna Kea reported Q4/2018 financial results slightly below our expectations, however, with sales of €2.1m (37% YoY), Q4 represents the strongest quarter for Mauna Kea in 2018, thus highlighting the increasing traction for Cellvizio and validating the transition to the new pay-per-use ("PPY") model in the US. Total sales were largely driven by consumables sales of €0.8m, of which €0.3m were associated with PPY (112% YoY). As we expected, FY2018 revenues from Cellvizio straight sales declined (-13% YoY) as a result of the move to the new sales model, but this decline was offset by an increase in consumables sales and services, bringing FY2018 sales to €6.8m (1% YoY), slightly short of our FY2018E estimate of €8.3m. We remind investors that low utilisation of PPY systems still represents a main risk, in our view, but we continue to believe that the new PPY model will translate into sustainable future growth. We maintain and reiterate both our OUTPERFORM recommendation and €4.10 target price.
18 Jan 2019
Q4 performance generating momentum for 2019
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Q4 performance generating momentum for 2019
Mauna Kea Technologies SA Class O (0P5I:LON) | 0 0 0.2% | Mkt Cap: 75.0m
- Published:
18 Jan 2019 -
Author:
Martin Piehlmeier -
Pages:
5
Mauna Kea reported Q4/2018 financial results slightly below our expectations, however, with sales of €2.1m (37% YoY), Q4 represents the strongest quarter for Mauna Kea in 2018, thus highlighting the increasing traction for Cellvizio and validating the transition to the new pay-per-use ("PPY") model in the US. Total sales were largely driven by consumables sales of €0.8m, of which €0.3m were associated with PPY (112% YoY). As we expected, FY2018 revenues from Cellvizio straight sales declined (-13% YoY) as a result of the move to the new sales model, but this decline was offset by an increase in consumables sales and services, bringing FY2018 sales to €6.8m (1% YoY), slightly short of our FY2018E estimate of €8.3m. We remind investors that low utilisation of PPY systems still represents a main risk, in our view, but we continue to believe that the new PPY model will translate into sustainable future growth. We maintain and reiterate both our OUTPERFORM recommendation and €4.10 target price.