Nvidia, AMD to pay 15% of China chip sales revenue to US govt- FT
LONDON - Kromek Group plc (AIM: LON:KMK), a developer of radiation and bio-detection technology solutions, has reported its interim results for the six-month period ending October 31, 2024, and announced post-period multi-year agreements with Siemens (ETR:SIEGn) Healthineers that are expected to drive the company into profitability in the current fiscal year.
The agreements with Siemens Healthineers involve the production of cadmium zinc telluride (CZT) detectors for use in single photon emission computed tomography (SPECT) applications. Kromek will receive $37.5 million in cash over four years, with a substantial first installment of $25 million contributing to revenue in the current financial year. Additionally, Kromek will transfer 15 of its 174 furnaces and provide Siemens Healthineers with the necessary know-how, intellectual property, and related services for CZT-based SPECT detector production on a non-exclusive basis.
Kromek’s financial summary for the first half of the fiscal year 2025 showed a revenue of £3.7 million, down from £7.1 million in the same period the previous year. However, gross margins improved to 56.9%, and despite a pre-tax loss of £5.7 million, the company’s cash position slightly increased to £0.6 million.
The company also highlighted its operational developments, including sustained deliveries under existing contracts, advancement in a molecular breast imaging program, a £2.0 million contract from the UK Ministry of Defence, and selection under two UK Government frameworks for radiological and nuclear detection.
Dr. Arnab Basu, CEO of Kromek, expressed confidence in the company’s initiatives to drive product delivery and monetize intellectual property. He anticipated that the agreements with Siemens Healthineers would significantly reduce debt, strengthen the balance sheet, and support sustainable growth in revenue and profitability.
The company’s strategic positioning as the largest independent producer and supplier of CZT, combined with a stronger balance sheet, is expected to contribute to sustained revenue growth and profitability, with the Board looking to the future with confidence.
This article is based on a press release statement from Kromek Group plc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.