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    Home > ASX Announcements > COMPUMEDICS FULL YEAR RESULTS FY2022

    COMPUMEDICS FULL YEAR RESULTS FY2022

    August 18, 2022

    Record sales, sound financial position, key step-out growth focus

     

    KEY HIGHLIGHTS

    • Revenues from shipped and invoiced sales were $37.8m for FY22 up 6% on FY21 ($35.7m)

     

    • EBITDA improved to $3.3m for FY22 compared to $2.6m for FY21

     

    • NPAT improved to $1.4m in FY22 compared to $1.0m in FY21

     

    • Sales orders taken were a record $45.1m in FY22 up 29% on the $35.3m taken in FY21

     

    • Cash on hand increased to $7.1m on 30 June 2022 compared to $6.8m on 30 June 2021

     

    • Company continues to actively pursue ongoing step-out commercial growth opportunities for the MEG and Somfit technology platforms

     

    INVESTOR OVERVIEW

     

    • Core Business:
      • The Company benefited from its diversified revenue streams (both geographic and product line) in FY22. FY22 compared to FY21 revenue growth in France, Germany, USA and Japan, offset declines in Asia, DWL and other parts of Europe, whilst Australia was consistent with the prior year

     

    • eHealth step-out:
      • Compumedics has consolidated its Nexus 360 installation base with over 380 beds/devices in the US across sleep and neuro customers. The Nexus 360 platform generated A$1.3m revenue in FY22, up from the $1.1m booked in FY21
      • Somfit – the Company has progressed several research and collaborative arrangements as part of the validation and commercialisation of the Somfit technology over FY22, including the initial sale of about 130 devices as a result of these commercial validation activities
      • Compumedics is in active discussions with interested third parties in relation to potential initial commercial applications for the Somfit device

     

    • Neuroscan/MEG step-out:
      • The Company continues to progress the installation of its first MEG system at Barrow Neurological Institute in Phoenix, Arizona, despite the COVID-19 impacts of lockdowns and border restrictions
      • The Company continues to prepare for the second sales order installation at TJNU ($4.1m) later in 2022, early 2023
      • The Company continues to pursue other MEG opportunities

     

    • FY23 Guidance:
      • With the effects of the pandemic continuing to abate the Company resumes guidance, anticipating that revenues for FY23 will be in excess of $40m (without MEG) and EBITDA is expected to be in excess of $4m on the same basis

     

    Compumedics Limited (ASX: CMP) (“Compumedics” or “Company”) wishes to announce its financial results for the full year ending 30 June 2022 (FY22).

    Compumedics’ reported net profit after tax (NPAT) increased in FY22 to $1.4m. This is compared to $1.0m in full-year 2021 (FY21). EBITDA for FY21 was $3.3m, an increase on the $2.6m in FY21. Shipped and invoiced sales increased 6% to $37.8m for FY22, compared to $35.7m for FY21. The Company took record new sales orders in FY22 of $45.6m, 29% higher than the $35.3m of new sales orders taken in FY21. The FY22 result included a new $4.1m MEG sales order. Excluding this, underlying sales orders taken were $41.5m, a 12% increase over FY21.

    The increase in revenues reflects the benefits of the Company’s diversified revenue base, both geographically and on a product line basis. Over the course of FY22 different countries and markets within those countries were impacted differently as countries emerged from the ongoing COVID-19 pandemic. As a result, the Company was able to improve its revenue performance over FY22 compared to FY21.

    France and Germany, for sleep and neurology, both posted growth in sales shipped and invoiced in FY22 compared to FY21, with the same in the USA and Japan. These gains were offset by declines in other parts of Europe and DWL. Whilst Asia also declined, Australia performed in line with the prior year.

    Gross margins declined despite the increase in sales largely because of increased input costs and higher costs associated with logistical and supply issues associated with pandemic shortages and delays. Margins were 51% in FY22 compared to 54% in FY21. Margins will continue to be reviewed for on-going efficiency gains from the Company’s ongoing project to review all aspects of manufacturing and minimise all input costs and processes as possible.

    EBITDA for Compumedics improved from $2.6m in FY21 to $3.3m in FY22. The improvement in EBITDA in FY22 was largely a result of higher revenues, and on-going cost containment/management. With this said, the Company continued to invest in both its Somfit and MEG growth platforms.

     

    The following table highlights the key financial performance measures on this basis:

     

    OPERATIONS

     

    Core Diagnostic Medical Devices business separated from Medical Innovation business

    The Company’s core Diagnostic Medical Devices business encompasses the technology and products currently sold globally for the diagnosis and/or monitoring of sleep disorders and neurological disorders, and for the monitoring of blood flow through the brain. It also includes products and technology used in advanced brain function research.

    Compumedics’ Medical Innovation business primarily includes technologies and products for the consumer monitoring of sleep and subsequent treatment of sleep disorders.

     

     

     

    Results for the Diagnostic Medical Devices business for the full year ended 30 June 2022:

     

    • Shipped and invoiced sales were 6% higher at $37.8m for FY22, compared to $35.7m for FY21
    • Sales orders taken in FY22, excluding MEG, were $41.5m, 12% higher than the $35.3m sales orders taken in FY21
    • NPAT for FY22 was $3.6m compared to $3.1m for FY21
    • EBITDA was $5.3m for FY22 compared to $4.7m for FY21
    • Cash on hand improved to $7.1m for FY22 compared to $6.8m for FY21

     

    Results for the Medical Innovation business for the full- year ended 30 June 2022:

     

    • Compumedics has consolidated its Nexus 360 installation base with over 380 beds/devices in the US across sleep and neuro customers. The Nexus 360 platform generated A$1.3m revenue in FY22, up from the $1.1m booked in FY21
    • Nexus 360 is a pay per customer system which leverages CMP’s strong core polysomnography (PSG) and electroencephalogram (EEG) testing equipment and diagnostic smarts
    • This eHealth platform is used by Somfit technology via customer’s smart phone
    • The Company has executed several research and collaborative arrangements during FY22 for the Somfit technology as part of its commercialisation path. The Company is engaged with third parties in relation to initial commercial applications for the Somfit technology
    • The Company continues to progress several other technology opportunities currently residing within the Medical Innovation Division and will make further announcements when appropriate

     

    CORPORATE

     

    Key Growth Focus & Opportunities

    The Company is focused on several initiatives to underpin both current and future growth, including:

     

    • New product platform roll-out to continue in FY23
      • The Company is poised to release a new range of ambulatory products for both its sleep and neurological diagnostic and monitoring businesses through late calendar 2022 and early calendar 2023
      • This new range incorporates a Home Sleep Testing device as well as new ambulatory sleep devices and a new range of Long-Term Monitoring devices for epilepsy

     

    • Neuroscan expansion into much larger MEG brain analysis imaging market
      • Compumedics has undertaken the first phase of the installation of its first MEG sale at Barrow Neurological Institute in the US and continues to progress this installation, subject to ongoing discussions with BNI
      • The Company won its second MEG sale to TJNU in China in December 2021 and is working towards shipping this later in calendar 2022, early 2023. The Company will continue to pursue further opportunities in this field during FY23

     

    • Growth in international sales with expansion plans in the USA, Germany, France and China markets
      • The Company will continue to expand its USA sales team to grow market share in both sleep and neurological diagnostic and monitoring markets
      • In Germany and France, the Company will pursue sales resources for both sleep and neurological diagnostic and monitoring markets there
      • The Company will continue to build on its long-term relationships in China to grow the Company’s businesses in the region, subject to ongoing trade relationships

     

    • eHealth: The Company is continuing to commercialise its cloud-based sleep diagnostics platform, Nexus 360, for both professional and consumer applications
      • Compumedics has consolidated its Nexus 360 installation base with over 380 beds/devices in the US across sleep and neuro customers. The Nexus 360 platform generated A$1.3m revenue in FY22, up from the $1.1m booked in FY21
      • The Company has executed several research and collaborative arrangements during FY21 for the Somfit technology as part of its commercialisation path. The Company is engaged with third parties in relation to initial commercial applications for the Somfit technology

     

    • DWL: Expansion opportunities with the newly granted break-through auto-scan TCD patent to be pursued

      • The Company will continue to develop its technologies around the 3D Transcranial Colour Doppler (3D TCCD)/Duplex imaging, whilst refining the best way to fully exploit this commercial opportunity
      • One option being evaluated is a “concussion assessment pen” which can make a clinical grade assessment of concussion on the sporting field

     

    FINANCIAL OUTLOOK & GROWTH PATHWAY

    Compumedics expects the identified Key Growth Opportunities to deliver an increase in revenues and earnings in FY23, subject to the ongoing effects of the COVID-19 pandemic on the Company.

    With the pandemic abating, the Company resumes guidance. CMP Forecast FY23F expects revenues, excluding MEG, to be in excess of $40m and for EBITDA to be in excess of $4m.

     

    About Compumedics Limited

    Compumedics Limited [ASX: CMP] is a medical device company involved in the development, manufacture and commercialisation of diagnostics technology for the sleep, brain and ultrasonic blood-flow monitoring applications. The Company owns US based Neuroscan and Germany based DWL Elektronishe GmbH. In conjunction with these two subsidiaries, Compumedics has a broad international reach, including the Americas, Australia and Asia Pacific, Europe and the Middle East.

     

    Executive Chairman Dr. David Burton founded Compumedics in 1987. In the same year the Company successfully designed and installed the first Australian, fully computerised sleep clinic at Epworth Hospital in Melbourne. Following this early success, Compumedics focused on the development of products that sold into the growing international sleep clinic and home monitoring markets.

     

    Compumedics listed on the Australian Securities Exchange in 2000. Over the years, Compumedics has received numerous awards, including Australia’s Exporter of the Year, and has been recognised as a Top 100 Innovator by both German and Australian governments.

     

    For further information please contact:

    Dr David Burton
    Executive Chairman, CEO
    Phone: + 61 3 8420 7300
    Fax: +61 3 8420 7399      

    David Lawson
    Director, CFO
    Phone: + 61 3 8420 7300
    Fax: +61 3 8420 7399

    Rod North, Managing Director
    Bourse Communications Pty Ltd
    T: +61 3 9510 8309, M: 0408 670 706
    E: rod@boursecommunications.com.au

    Authorised for lodgment by Compumedics Limited’s Board of Directors

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