Bionime announces earnings results for 1H 2020, expresses confidence for the second half

Bionime announces earnings results for 1H 2020, expresses confidence for the second half

TAIPEI, Taiwan – 2020, Oct, 16 – Bionime Corporation (4737-TW) held the annual earnings call event on October 13^th. Chairman Mr. Roy Huang stated optimism on progress of the Continuous Glucose Monitor (CGM) product development, as well as improvements in technology for the current product lineup.

(Bionime CGM product lineup)

-Net cash flow increased in the second quarter to NT$119 million, with capital reserve at NT$1.3 billion.

-Earnings per share (EPS) for the first half of 2020 fell YoY to NT$-0.39 from NT$0.79 the same period last year.

Revenue for 1H20 was affected by the delay of orders from major customers to the second half of the year, with the China and Algerian markets as the main affected areas. This resulted in gross margins dropping to 42% (average for the past few years was around 44%-46%).

Bionime estimates that revenue will pick up for 2H20, and estimates that EPS for the year will be in the black. September’s revenue has turned positive, and the fourth quarter is the traditional high season. In the past, 2/3 of the annual revenue was contributed by the second half.

The annual revenue growth for the Blood Glucose Monitor product lineup is around 5% - 10%, with Europe and Africa accounting for more than 60% of revenue. Customers seem to pile up orders for the end of the year, drastically reducing their inventory during the first half.

Regarding the CGM, it is already entering the clinical trial phase, and is slated to launch in Taiwan 2H 2021.