What all you need to know about Alcidion Group Ltd?

ALC Details
 
Building on strategic relationships and new informatics contract: Alcidion Group Ltd (ASX: ALC) is well known as a provider of intelligent Health Informatics technology for healthcare professionals with Clinical Decision Support Systems to ensure the highest quality of care for their patients. The company got listed on ASX in February 2016. On April 06, 2017, ALC stock price jumped up 5.6% as the group secured a hospital informatics contract worth $2.35 million from Western Hospital. This move will help the group to deploy its hospital information system across three public hospitals of Western Health, in the western suburbs of Melbourne. The contract has been valued for an initial three-year term at $1.45 million, and Western Health will hold the option to extend the agreement for $450,000 per annum for the subsequent two years. ALC had developed an intelligent Cardiovascular Information System (iCVIS) for FUJIFILM to look at the clinical risk, workflow and logistical issues encountered in cardiology departments, and both the groups have completed the delivery of the system to Sunshine Coast University Hospital in Queensland, Australia.
 

Financial Performance (Source: Company Reports)
 
In FY16, ALC deployed three new products - Clinic, Best Practice Orders Sets and Access Bed Management, to paid beta site customer environments. Further, a cloud-based Data Acquisition Technology has been developed for the National Echocardiogram Database of Australia. The group reported about its healthy financial position in FY16 with minimal debt and positive cashflow for Q1 and Q2 of FY17. Cash position improved from $5.65m to $5.725m in 1H FY17. The interim period FY17 loss before tax was $1.559m owing to non-cash expense and R&D Costs.
 

Interim Result (Source: Company Reports)
 
Going forward, ALC aims to bring more cloud based, low cost, product modules and provide platforms for key partnerships with healthcare technology partners.Another key target of the group is to have a planned move into North America by 2018.
 
Stock Performance: Looking at the current scenario and financial performance (particularly, revenue and loss after tax from continuing operations), we believe that it will be a little early to invest in the company before a significant prospect is seen. The stock had fallen 19.32% this year to date but rose 9.23% in last one month (as at April 05, 2017).We give an “Expensive” recommendation at the current price of $ 0.075
 

ALC Daily Chart (Source: Thomson Reuters)

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