The Nanosonics Ltd (ASX: NAN) share price is in focus after the ASX healthcare share gave an update about FY22.
Nanosonics describes itself as an Australian infection prevention company that has developed a unique automated disinfection technology called trophon.
Sales transition
The ASX 200 (ASX: XJO) share said that its implementation to a more direct sales model has progressed positively, the transition of GE trophon customers in collaboration with GE is substantially complete for the ongoing supply of consumables.
Shipping volumes through the Nanosonics facility in Indianapolis are up more than 100% compared to the pre-transition period, with no disruption to customers. Nanosonics also said that it has sufficient capacity in place to fulfil expected future growth.
An expanded direct team sold 91% of the new installed base units in the fourth quarter.
The number of upgraded units sold in the second half in North America was up 32% compared to the first half. Of the upgraded units sold in the second half, 63% were in the fourth quarter, with the Nanosonics team responsible for 86% of those sales. This could be helpful for the Nanosonics share price.
Nanosonics and GE have extended the current capital reseller agreement for another 12 months from July 2022, enabling GE’s ongoing access to trophon capital equipment in North America.
Nanosonics said it is expected that the significant majority of future capital sales will continue to be made by Nanosonics.
FY22 update
Nanosonics revealed it’s expecting to report revenue of $120.3 million, which would be an increase of 17% compared to FY21.
The global installed base increased by 12% in FY22 to 29,850.
Its 2022 financial year result will be released on 23 August 2022, as well as a research and development update.
Summary thoughts about this update
As the boss of Nanosonics indicated, the intended benefits from the sales transition are clearly having an effect already with the Nanosonics team selling a lot of the newly installed devices, as well as the adoption of upgraded devices.
This seems like a useful update by the business. However, I’m not sure what good value is for the Nanosonics share price, so I’ll leave that for others to judge and focus on other ASX growth shares.
