1st Detec’s Tracer 1000™ passes the TSA Air Cargo Screening Technology Qualification Test. And Astrotech stock makes a strong move in yesterday’s market after ASTC reports a 284% increase in fiscal year 2020 revenues.
Following two major announcements, Astrotech Corp. (ASTC) shares surged to double figures closing yesterday’s market with +20.47%. The company stands at a strong position after reporting remarkable fiscal year 2020 results and its subsidiary, 1st Detect’s TRACER 1000™ passing the U.S. Transportation Security Administration’s (TSA) Air Cargo Screening Technology Qualification Test’s (ACSQT) non-detection testing.
Astrotech shares were continuously dropping since last one month. As of August 10, 2020, ASTC was trading at $3.25 and since then it continuously dropped, unless on Tuesday when the stock was trading at month’s lowest at $1.61, it suddenly spiked up yesterday reaching day’s highest at $2.48 at 10:22 A.M.
Astrotech began trading at $2.04 on Wednesday before it closed the day at $2.06 surging up to 20%. The shares price of Astrotech were driven by these two announcements made on September 8.
1st Detect, the subsidiary of Astrotech reported that the TRACER 1000™ passed the ACSQT non-detection testing. Following the test passing, TRACER 1000 is now set to be listed on the Air Cargo Screening Technology List (ACSTL) as an ‘approved’ device and thereby allowed for cargo sales in across the U.S.
The CEO of 1st Detect, Raj Mellacheruvu commented that this is a big achievement for the company as it takes it one step ahead to sell its product in the country. He stated:
“We continue to sell the TRACER 1000 to the international cargo screening markets following the receipt of the European Civil Aviation Conference (ECAC) certification in 2019, and we are excited to get one step closer to being able to sell our product in the U.S.”
TRACER 1000 is a next generation ETD and it is a unique device compared to its competitor devices, as it comes up with near-zero false alarms that provides considerable savings in secondary screening. In addition, it also allows an unlimited threat library through providing insurance against technology obsolescence.
Fiscal Year 2020 Financial Results
Astrotech Corp. (ASTC) also updated its financial results for the fiscal year that ended on June 30, 2020. The strong financial results have driven ASTC stock price as the investors seem to welcome yearly outcomes with joy.
Despite having unbearable circumstances during the second half of fiscal 2020, Astrotech stood firm and this year turned out to be a pivotal one for the company. The company recorded the first sales of its TRACER 1000™ explosives trace detector (ETD), also signing a key contract with a global shipping and logistics company.
Moreover, Astrotech was keen to expand its business and diversify its portfolio, the company also launched AgLAB, Inc. AgLab will cover the demand of the hemp and cannabis market, adding more to the revenue of ASTC. The company also launched BreathTech Corporation to tackle COVID-19 epidemic, as this corporation will work to find a potential cure for lung diseases, including COVID-19 and pneumonia.
Astroctech reported 284% increase in its revenue which was $488,000 compared to the last fiscal year. The company decreased its operating expenses by almost 3.6% in order to optimize its resources. During fiscal year 2020, ASTC raised approximately $8.7 million of investments, along with a $2.5 million investment from the Chairman and CEO. In addition, around 5.7 million proceeds were generated through two registered direct offerings and at-the-market offering.
Ending the year on a high, Astroctech reduced cash burn to almost $575,000, an 18.2% reduction from ASTC’s run rate in fiscal year 2019.