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Micro-X ramping up Nano production to meet COVID-19 driven demand - TechInvest Magazine Online

Written by Staff Writers | May 13, 2020 11:27:30 AM

Australian cold cathode x-ray technology specialist Micro-X Ltd (ASX:MX1) is receiving unprecedented demand for its Carestream DRX Revolution Nano mobile Xray technology driven by the effects of the COVID-19 pandemic.

Managing Director, Peter Rowland said that following the recent completion of a $15 million share offer, the ramp up strategy for Nano production is being implemented on an urgent basis.

In the month of April 2020, $0.5 million of Nano units from existing purchase orders were completed and shipped to the end customers. In addition, a further $1.5 million of Nano units are at various stages of production with $0.5 million of these already substantially completed.

The remaining components are now arriving which will enable these Nano partially and substantially complete units to be completed, tested and shipped this Quarter. Once Nano units are completed and shipped they are invoiced and treated as revenue for Micro-X.

Additionally, following the recent completion of a $15 million offer, the ramp up strategy for Nano production is being implemented on an urgent basis.

This ramp up includes $0.6 million in capital equipment which has now been largely ordered and is expected for delivery this Quarter.

There is also an additional investment of $3.4 million in inventory in the form of components and once built, semi complete or complete Nano units. This ordering has taken place and components will arrive progressively this Quarter.

In total since January 2020, $1.7 million of Nano units have been built, shipped and invoiced.

We set out to capture COVID-19 demand for our Nano when we raised funds and with the Placement component completed two weeks ago we have been working very hard on this initiative,” Mr Rowland said.

“I am pleased to report that we’ve been successful in ramping Nano production with the rate of units being built and shipped increasing rapidly.

“We have worked through some supply chain challenges due to recent global trade disruption and above all else our priority is to reduce our backlog of existing orders and therefore the delivery times for future orders.”