Australian X-ray technology company Micro-X (ASX: MX1), known for its cold cathode X-ray technology used in health and security applications, has secured a Purchase Order worth $1.5 million from the Australian Government for its portable X-ray imaging tech Micro-X Rover systems.
These Rover units are currently in stock and will go through final adjustments in Tonsley, Adelaide, before being delivered in early October 2023. The issuance of this Purchase Order is a result of the Micro-X sales team’s dedicated efforts.
Micro-X Chief Executive Officer, Kingsley Hall, commented, “We are thrilled that the Australian Government has placed an order for our Rover systems. The government’s purchase of our x-ray systems demonstrates the robustness and utility of our lightweight x-ray technology and goes to our core purpose of creating revolutionary imaging to better lives.”
The Rover is a lightweight and portable X-ray machine called the Rover Mobile DR. It takes high-quality X-ray pictures for patients wherever they are—be it at home, in a hospital, or on a sports field. It’s light because it uses a special technology called NEX Technology that doesn’t need heavy materials like oil and lead, making it only about 100 kilograms heavy in total. This makes it much easier to move around without compromising on image quality.
In FY23, Micro-X reported a revenue uptick of 67% on FY22 to $15 million. Its loss reduced by 37% to $10.7 million, compared to a loss of over $17 million in FY22. This loss included investments in the development of a high-powered generator and associated X-ray tube and the Argus X-ray Camera, which are all but completed.
At the same time, its cash equivalents fell from $10.3 million to $5.2 million. Recognising its intense cash burn, the Company identified annualised cost savings of $2 million by tightening costs across its business, becoming effective on July 1, 2023.
Micro-X’s strategy going forward will include focusing on pushing its tech and exploring partnerships to capture the large addressable markets. In September 2022, Micro-X licensed its technology to X-ray tech component producer Varex to produce multi-beam emitters. The deal delivered a welcome $15 million cash injection to the Company.
The Company is set to receive $13 million in contracted revenue in FY24 for development work, once some milestones are fulfilled. These contracts are with the Australian Stroke Alliance for the CT Brain scanner, the U.S. Department of Homeland Security for the Miniature baggage scanner and Airport Self Service Portal, and Varex Imaging Corporation. Additionally, it anticipates turning most of its $6 million Rover inventory into positive cashflow, with minimal new expenses associated with these sales.
The current Australian Government contract is in line with the Company’s goals for Rover.
Hall added, “With this order, our re-energised sales team has delivered a total of $2.8 million in sales and orders of Mobile DR units this Quarter, which means we have progressed well in our previously announced strategy of increasing sales and converting our inventory into cash.”
Micro-X has already shipped and invoiced $1.3 million of Mobile DR systems, including Rover Plus and Nano systems. With the addition of this Purchase Order for Rover systems, the total for this quarter reaches $2.8 million. This win was made possible thanks to existing inventory, aligning with the Company’s persistence to turn it into cash.
Alinda is a Business Reporter for The Sentiment
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