The Alcidion Group Ltd (ASX: ALC) share price is racing higher today following the release of its second quarter update.
In early trade, the healthcare technology company's shares are up 7% to 22.5 cents.
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How did Alcidion perform in the second quarter?
For the three months ended 31 December, Alcidion added $12.6 million of revenue. This was up 163% on the first quarter and 260% on the prior corresponding period.
In light of this, with six months still remaining in the financial year, the company has revenue of $21.7 million that is able to be recognised in FY 2021. This is already 17% higher than the entire revenue the company generated in the whole of FY 2020.
In addition to this, management notes that a further $23 million of sold revenue is to be recognised out to FY 2026.
One of the key drivers of this revenue growth has been an $11.3 million five-year deal with South Tees Hospitals NHS Foundation Trust. This deal was signed during the second quarter and is for Alcidion's full suite of products and services. This includes Miya Precision and Better's OPENeP.
At the end of the quarter the company had a cash balance of $12.5 million. Though, this has been boosted since then by the receipt of a $3 million payment in January relating to the South Tees contract.
"Significant quarter of sales"
Alcidion's Managing Director, Kate Quirke, was delighted with the company's performance in the second quarter.
She said: "Building on an already strong start to the financial year, I am delighted to present a significant quarter of sales that was one of Alcidion's best to-date. Our milestone contract and extension with South Tees NHS Trust is an important validation of our market-leading value proposition and full service approach in the UK, supporting the NHS' digital transformation."
"We have made further headway in the UK in Q2 with our Miya Precision products continuing to gain traction with existing and potential customers, along with our ability to resell NextGate solutions as part of our portfolio of reseller products in the UK and Ireland."
Looking ahead, Quirke believes the company is well-positioned to build on its strong second quarter performance.
She commented: "We have entered the second half of FY2021 in an advantageous position and look forward to building on the sales momentum of the first half. While we are carefully monitoring the COVID-19 situation in all markets – particularly the UK – we remain confident that with hospital protocols now in place at NHS hospitals, health IT procurement will continue close to normal. Furthermore, the situation continues to present an opportunity for Alcidion to implement our smart health IT solutions and drive a new standard of better, more efficient and safer care."
