Atomo Diagnostics said revenue for the first quarter increased 140% year over year to AUD 1.63 million, with growth in its HIV business and a sharp rise in original equipment manufacturer (OEM) sales. The company also reported a wider EBITDA loss and a lower gross margin as it continued investing in product development and manufacturing improvements.

HIV revenue reached AUD 630,000, up 38% from the previous quarter, while OEM revenue climbed 450% quarter on quarter to AUD 938,000. Atomo attributed the OEM increase to sales from the FebriDx partnership with Lumos Diagnostics. The company said Lumos had reported more than 200 active U.S. sites.

Gross margin was 26%, compared with 38% in the year-earlier quarter, which Atomo linked to a shift in revenue mix. The EBITDA loss widened to AUD 1.3 million from AUD 983,000 a year earlier. Operating expenditure was AUD 1.98 million.

Atomo ended the quarter with AUD 2.67 million in cash and no debt. Operating receipts were AUD 2.5 million, including AUD 84,000 from a syphilis grant milestone, while cash payments to suppliers and employees totalled AUD 3.4 million.

The company said its priorities include expanding distribution partnerships, growing direct pharmacy sales in Australia and New Zealand, and advancing new products. Analytical and clinical trials for its Gen 4 HIV and active syphilis tests are expected to begin in the second half of the fiscal year. If development proceeds as planned, Atomo is targeting launches in roughly 18 to 24 months.

Atomo is also working with U.K. company Upfront Diagnostics on a product for brain injury and stroke. CEO Sherry said the company aims to complete a supply agreement by the end of the calendar year, while noting there is no guarantee on timing. The company also said manufacturing changes, including new molds and in-house blister production, are intended to reduce per-unit costs in the second half of the fiscal year.

Atomo shares were unchanged at $0.01, at the bottom of their reported 52-week range of $0.01 to $0.05. The company did not provide a formal quarterly earnings forecast in the available call materials.

Sources: Investing.com News.