Atomos, the Australian manufacturer of video monitor and recording solutions, has recently been listed on the ASX stock exchange in Australia, following the completion on 28.12.2018 of the 4.2 million dollar IPO, which valued the company at 43.8 million dollars. Since then, after an increase of 125%, Atomos& share price has stabilised at around 80% plus compared to the initial price.
Atomos generated revenues of .1 million in fiscal 2018 and is forecasting a 19% increase in revenues to .7 million in 2019. In prospectus, which Atomos filed with the Australian Securities and Investments Commission (ASIC) last month, Atomos describes its plans for the future in more detail.
The current target market of pro-video producers is to be expanded by new products in the direction of high-end (broadcast, TV and cinema) as well as prosumer and social media producers with rather small budgets. The product portfolio, which currently comprises 7 devices, is to be doubled to 14 models in the next one to two years with new models based on the AtomIC platform and the AtomOS operating system developed for the Ninja V. The new AtomIC platform will be used for the first time in the next two years.
Atomos intends to use the proceeds from the IPO to finance its further worldwide growth and the development of new products. It will be interesting to see what Atomos will offer in terms of new products - in the high-end segment, other devices with large displays will follow in addition to the 19" 4K Recorder/Monitor SUMO. Atomos will probably also develop further modules using the new AtomX expansion port.
Atomos published this diagram, which points to a planned expansion into new markets.
Threats a patent dispute with RED?
But the prospectus also revealed that Atomos was threatened with a court case by RED. Red claims that some Atomos products infringe four RED patents related to recording and playback by two of the five video codecs used by Atomos. Atomos contradicts these allegations and is still in discussion with RED. If an amicable solution is not reached, RED could file a lawsuit in court to enforce its claims and Atomos faces a time-consuming and costly lawsuit.
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