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RESEARCH: Sensera Limited, Q4 Snapshot

FYI | Aug 01 2019

By Pitt Street Research

Strong sales growth, solid new bookings

Sensera Limited ((SE1)) achieved revenues of US$3.8M in 4Q19 (June quarter), which is the biggest quarterly revenue number to-date for the company (Figure 1).

Total revenues of US$10.2M in FY19 were up 60% year-on-year. While they fell just short of the US$10.5M-US$11M guidance, the company cited customer delivery timing cut-offs towards the end of June as the reason for the shortfall of several hundreds of thousands in revenues.

Additional capacity has been put in place in the meantime to be able to meet the company’s current revenue opportunities.

US$3m in new bookings per 26 July

The company recorded solid new bookings for July resulting in a backlog that already covers more than 50% of the company’s 1Q projected revenues with the balance expected to be booked in the remainder of the quarter. Bookings are roughly split 50/50 between MEMS and Nanotron, which we believe reflects well-balanced growth for SE1.

On the MEMS side of the business, the fast-growing Medical segment is by far the largest contributor to the backlog at around 75%. This is largely due to the design wins that SE1 achieved over the last 18 months with customers like Abiomed.

Valuation range of $0.50–0.58 per share unchanged

SE1 is expected to report its full set of FY19 results towards the end of August. In the meantime, we leave our DCF-based valuation range of A$0.50–0.58 per share unchanged. The minor shift of revenues from 4Q19 into 1Q20 doesn’t change our long-term view and valuation of the company.

Moreover, we believe the new distribution agreement with Arrow can potentially be a very strong, additional, driver of revenue growth.

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