Transense Technologies (LON: TRT) shares are trading higher on Wednesday after it reported a small loss in the first half of its financial year but an increase in revenue.
The specialist sensor systems developer posted a pre-tax loss of £53,000 in the six months ending December 31st 2020, lower than the previous years £570,000 pre-tax loss.
During the period revenue increased to £895,000 from £271,000 the prior year.
The company also saw royalty income front iTrack increase over 15% to £370,000.
“We have every confidence that iTrack will continue to achieve increased market penetration, and deliver royalty income at or above our current expectations,” commented Nigel Rogers, executive chairman of Transense.
In June 2020, the company granted an exclusive worldwide licence to ATMS Technology Limited, a wholly-owned subsidiary of Bridgestone Corporation Japan, covering all current and future iTrack technology for 10 years. ATMS offers Bridgestone customers worldwide, tyre monitoring systems for all off-road vehicles using iTrack technology under the licence.
Transense received a quarterly royalty payment based on the number and classification of vehicles upon which the iTrack technology is deployed during the licensed period, at the conclusion ATMS will have the option to acquire the technology for a nominal cash sum.
Looking ahead, Transense said commercial prospects for its SAW technology have been revitalised after strengthening the management team and enlisting the support of key opinion leaders through the SAWCAP initiative.
SAW is the company’s Surface Acoustic Wave sensor technology, used to improve equipment power, performance, reliability and efficiency.
“We consider that the outlook for the Company is positive, and prospects for the Company and its shareholders are more favourable than at any time in the Company's history,” said Rogers.
Transense’s stock price is trading 22.29% higher at the time of writing, priced at 66.5p.
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