Revasum (ASX:RVS): Why is RVS up 33% today?

Very bullish revenue guidance for 2022 tucked away in a presentation

On 7 December, Revasum (ASX:RVS) published a presentation that CEO Rebecca Shooter-Dodd gave to the Annual CEO Summit. Hidden on page 22 of that preso was a chart that gave a revenue forecast for the current financial year, FY21, which ends in 3 weeks. More importantly, the company provided a revenue forecast for FY22, which starts on 1 January.

While the FY21 revenue forecast of US$13.3m to US$15.6m is interesting, the FY22 forecast of US$25m to US$35m was unexpected, but also extremely bullish….at least in our view. You see, US$15m to US$23m of that revenue forecast is attributable to the company’s new Silicon Carbide (SiC) polisher and grinder tools.

This signals several things. Firstly, we believe it indicates that the company is very upbeat on the traction these two new tools are getting with prospective customers in the SiC space, like NXT, Wolfspeed, STMicro and Infineon. Secondly, we believe it signals that RVS expects to sign a number of deals for the new tools in the short to medium term, which would then translate into revenues in FY22.

RVS also indicated it will be cashflow positive in FY22 after burning through US$16m in the last three years.

Revenue to double in FY22

If RVS hits the upper end of its maiden FY22 revenue forecast, it would essentially double its revenues year-over-year, while revenues from the new tools would quadruple in 2022!

So, if you were wondering why RVS was up 33% on Tuesday 7 December, that’s why!

At Stocks Down Under we have written extensively about ASX-listed semiconductor and semiconductor manufacturing equipment stocks. And last week we held a semiconductor conference featuring WBT, 4DS, BRN, AXE, BLG and BCT. Check out all conference presentations here.

Check out an interview we did with Revasum’s CEO recently

Frequently Asked Questions about Revasum

• What is Silicon Carbide?

  Silicon Carbide is an exceedingly hard, synthetically produced crystalline compound of silicon and carbon with the chemical formula SiC. Semiconductors built on SiC wafers are used in high-voltage applications, like Electric Vehicles and solar power inverters.

• What does Revasum do?

  Revasum (ASX:RVS) manufactures production tools used by companies that produce SiC wafers. In turn, these wafers are used to build SiC chips used in EV’s and inverters.

• Who are the main manufacturers of SiC wafers and chips?

  The key players, and hence Revasum’s main prospects, are Wolfspeed (formerly Cree), NXP, STMicro and Infineon.