Overall, NAN missed expectations, with the weakness in earnings attributed to a low Q4 growth (driven by reduction in range of healthcare procedures and limited hospital access due to COVID-19).
R&D expenses also significantly increased (by 37%) from its product expansion strategy. Based on the composition of revenue growth in Q4, we observe that it is largely affected by reduction in units purchased by GE Healthcare and delay in capital sales to customer due to COVID-19 impacts.
NAN expects Trophon capital sales to continue to be affected in North America due to limited hospital access. (this has been the experience to date in FY21). This could also impact capital equipment requirements of GE Healthcare (main North American distributor partner).
The overall revenue growth was impacted by a stagnant Q4 growth. Capital Revenue dropped significantly more in Q4 (by 34%), but overall revenue was supported by consumables/services revenue (which grew by 29% in Q4).
|Region||Installed Base||Perentage Increase||First 3 Quarters Increase Compared with First 3 Quarters of FY19|
|North America||20,990||13%||"In line with expectations"|
|Europe and Middle East||1,120||27%||37%|
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