Nanosonics [ASX:NAN] is an Australian-based infection control solutions provider. It has a current market capital close to $800 million, and a P/E ratio of around 30.
At time of writing the company has fallen 11.91% and is trading at $2.625 a share.
What happened to Nanosonic share price?
In the half-year financial results posted this morning, the company told investors that its net profit had fallen to $2.2 million from $22 million a year ago, making it a 90% fall from grace.
Sales were down 17% and R&D expenses were up 7%.
The company said first half reduction reflected a reduction in sales of consumables and accessories to GE Healthcare of around $1.8 million due primarily to sustaining inventory levels.
Where to from here for Nanosonic?
Nanosonics reiterated its growth agenda to focus on establishing its technology as the market standard, expanding into new markets, and developing new products which focus on unmet needs in infection prevention.
CEO Michael Kavanagh noted that the company’s agreement with GE Healthcare in the US is changing, which is forecasted in 2019 to result in a significant increase in consumable revenue and margins.
The company expects continued growth in North America, growing momentum in the UK, and an R&D increase in the second half.
The company expects the second generation of their key product ‘trophon’ to be introduced, alongside one or more new infection prevention solutions, in FY20.
The past year has been volatile for Nanosonics shares, reaching a peak of $3.35 in May, and a low of $2.15 in August. Its current share price represents around a 4% gain from where it was a year ago.
Editor, Money Morning
Junior Analyst, Money Morning
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