Signs of market headwinds in 2022 and 2023 were evident as Rockley Photonics Holdings Ltd. (Oxford, England) posted a net loss of US$121.8 million on revenues of $1.5 million in 2Q22.
The revenue was down on the US$2.2 million achieved in the same quarter a year before.
At the same time the company has exited datacommunications to focus on photonics-based health monitoring. However, at the same time the company has reduced its guidance for 2022 revenue and cancelled guidance for 2023.
For the 1H22 the company made a net loss of US$163.6 million on revenue of $2.5 million. Revenue was down from $4.0 million in 1H21 and the net loss increased from US$95.3 million.
Rockley’s cash position at the end of 2H22 stands at US$46.6 million down from $145.5 million at the end of 3Q21. The company received a cash injection when it when public via a reverse takeover that closed August 2021 (see Rockley takes SPAC route to go public as health business).
Proud of progress
“I am proud of the progress we made in the second quarter. As we ramp towards commercial production, we have reached many of the milestones that we’ve been working towards and expect to reach many more in the coming months,” said Andrew Rickman, chairman and CEO of Rockley.
The company reduced its revenue guidance for 2022 from a range of $20 million to $30 million to a range of $5 million to $10 million.
Rockley said it has removed all revenue from its datacomm platform monetization in its revised guidance for 2022 and staff from the datacomm operation have been re-assigned to photonics-based health monitoring.
The company had reportedly said previously that the sale of its photonic components to consumer wearables companies represented a $300 million to $320 million opportunity in 2023. Similarly sales of its photonics SOCs and modules had been estimated to be hundreds of thousands of units in 2022 and millions of units in 2023.
Rockley said that the information previously provided for 2023 no longer reflects the management’s views of 2023.
Rockley said that its own-developed wristband health monitor were expected to dominate sales in 2023. “The emphasis has moved to the medical device opportunities,” said Rickman.
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