Taking Stock of Astrotech’s Risk Factors

Astrotech Corp. (ASTC) is an innovative science and technology development and commercialization company. It invents, acquires and commercializes technological innovations to maximize shareholder value.

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Astrotech’s wholly-owned subsidiary 1st Detect commercializes trace detectors that are used in the security and detection market. Its AgLAB is developing chemical analyzers targeted at the agriculture market, and its BreathTech is developing a breath analysis tool for the early detection of lung diseases.

Let’s look at Astrotech’s recent fiscal 2021 financials and understand what has changed in its key risk factors that investors should know.

In fiscal 2021, Astrotech generated $334 thousand in revenue from the commercial sales of TRACER 1000. The company has also received additional purchase orders for the product. Astrotech generated revenue of $488 thousand a year ago.

Further, Astrotech plans to ramp up sales of its mass spectrometry instrumentation and explore other strategic opportunities to propel growth.

The Chairman and CEO of Astrotech, Thomas B. Pickens, III, said, “We now have what we believe to be the most rugged and least expensive mass spectrometer on the market that can provide an analysis comparable to laboratory instruments that are much more expensive.”

In fiscal 2021, Astrotech incurred a lower cost of revenue and operating expenses, as compared to fiscal 2020. This coupled with a higher number of outstanding shares helped the company decrease its net loss per share to $0.35 from $1.31 a year ago. (See Astrotech stock chart on TipRanks)

Now, let’s have a look at what’s changed in the company’s key risk factors.

According to the new Tipranks’ Risk Factors tool, Astrotech’s main risk category is Finance & Corporate, which accounts for 30% of the total 30 risks identified. Since June, the company has added one key risk factor under the Finance & Corporate risk category.

Astrotech highlights that its stock price has seen fluctuations in the past and has been volatile recently. Further, this volatility, which can be unrelated to the fundamentals of the company, may continue in the future and result in substantial losses for its shareholders.

The Finance & Corporate risk factor’s sector average is at 38%, compared to Astrotech’s 30%. Shares are down 44.8% so far this year.