BUSINESS UPDATE – Appendix 4D Release

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Record sales order growth helps to propel CMP full year result

BUSINESS HIGHLIGHTS

• Record sales orders taken for H1 FY25 of $32.8m were 12% higher than H1 FY24. Excluding MEG and DWL, sales orders taken for the sleep and neurology business for H1 FY25 were 73% higher than H1 FY24, propelled by sales in the USA business and Somfit SaaS
• Somfit® and Nexus 360 SaaS revenues were 50% higher at $2.9m for H1 FY25 compared to $2.0m for H1 FY24 as initial sales traction takes hold in the USA and ongoing sales in Australia
• Revenues lagged sales orders taken at $23.5m for H1 FY25 and were 12% lower than H1 FY24. Excluding MEG and DWL, the sleep and neurology revenues booked for H1 FY25 were 10% higher than H1 FY24
• Given the heavy investment in sales and marketing, primarily in the USA, to drive growth there, EBITDA was $0.7m for H1 FY25, compared to $2.2m for H1 FY24
• Reported NPAT for H1 FY25 is $1.1m loss, compared to $0.1m in H1 FY24. This reflects the significant investment in sales and marketing, primarily in the USA
• CMP confirms guidance of revenues of more than $55m for full year FY2025 (excluding MEG as the next shipment will occur in H1 FY26) and expects EBITDA to be about $5.0m.

PERFORMANCE OVERVIEW H1 FY25 (six months to 31 December 2024)

• Sales orders taken for H1 FY25 were a record $32.8m or 12% higher than H1 FY24. Excluding the MEG sales orders taken in H1 FY24 ($9.2m) sales orders taken for H1 FY25 are 55% higher than H1 FY24. Revenues for H1 FY25 were $23.5m compared to $26.4m in H1 FY24 or 12% lower. Excluding the MEG sale in H1 FY24 revenues for H1 FY25 were 8% higher on a like for like basis
• The business EBITDA profit of $0.7m for H1 FY25 compared to $2.2m for H1 FY24. The EBITDA result for H1 FY25 reflects the significant investment in sales and marketing, primarily in the USA to underpin renewed growth there, as evidenced by the 208% increase in sales orders taken for H1 FY25, compared to H1 FY24. It also reflects investment in R&D to accelerate the Somfit D (disposable) version for the HST (wearable) market in the USA. Given the record sales orders taken, EBITDA will strengthen in H2 FY25
• Operating cash flow (OCF) of $(2.0) for H1 FY25, compared to $1.2m for H1 FY24, also reflects the heavy investment in sales and marketing activities in the USA. Given the record sales orders taken, this position will improve in H2 FY25. H1 FY24 OCF improved due to substantially higher sales and better gross margins
• NPAT was $1.1m loss for H1 FY25 compared to $0.1m loss for H1 FY24 for the reasons already noted.

INVESTOR OVERVIEW

• Sleep and Neurology Business:
  • Sales orders taken for the sleep and neurology business at $30.8m for H1 FY25 were 73% higher than H1 FY24 Revenues for the sleep and neurology business grew 10% to $21.4m for H1 FY25, compared to $19.4m for H1 FY24.
  • Somfit and Nexus 360 revenues for H1 FY25 were $2.9m or 50% higher than H1 FY24, driven by initial sales in the USA with Australian sales continuing.

• Orion MEG Business:
  • ORION LIFESPAN™ MEG sale to TJNU was completed late in H1 FY25
  • The two MEG orders from China received December 2023 for $9.2m are now in advanced manufacture with delivery expected of the first system to be late H1 FY26 and the second system during H2 FY26
  • The Company anticipates additional MEG orders in calendar 2025.

• DWL Business:
  • Revenues for the DWL business continue to stabilise and the business is trending back to earnings and cash neutrality.

• Full-Year Guidance:
  • The Company confirms FY25 revenue guidance of more than $55m and for EBITDA to be about $5m.

Compumedics Limited (ASX: CMP) (“Compumedics” or “Company”) a global medical device company that develops, manufactures and commercialises diagnostic technology for sleep, brain, and ultrasonic blood flow monitoring is pleased to announce its financial results for the half-year ended 31 December 2024 (H1 FY25).

During the period H1 FY25, Compumedics revenues were $23.5m, which were 12% higher than H1 FY24, excluding the MEG sale booked in the prior period. On an as-reported basis, revenues for H1 FY25 were 12% lower than H1 FY24.

The table below highlights revenues booked for H1 FY25 by business area, compared to H1 FY24 and H1 FY23:

Compumedics booked record sales orders for H1 FY25 of $32.8m. Excluding the MEG sales orders taken in H1 FY24 this represented growth of 55% over H1 FY24. On an as-reported basis, sales orders taken for H1 FY25 were 12% higher than H1 FY24. The table below highlights sales orders taken for H1 FY25 by business area, compared to H1 FY24 and H1 FY23:

As the Company invests significantly in sales and marketing activities, primarily in the USA, as well as in new products, such as a disposable version of Somfit and the MEG business the EBITDA breakeven result for H1 FY25 of $0.7m reflects this and compares to a profit of $2.2m in H1 FY24.

The main impacts to EBITDA in H1 FY25 were largely a result of the following key factors:

1. The lack of an MEG sale in H1 FY25, whilst the Company continues to invest in this business
2. The significant investment ($2.0m for H1 FY25) in increased sales resources, primarily in the USA business, to grow our business in this key market, as evidenced by the 208% growth in sales orders taken during H1 FY25 in the USA business
3. Other one-off costs ($0.5m), such as recruiting fees which were incurred to seek and secure key sales leadership for the USA business and other critical business roles
4. Foreign exchange movements led to a favourable $0.2m movement to profit and loss in the current 6 months to 31 December 2025, compared to the pcp.

The Company is currently focused on continuing to grow revenues with resources in the USA, Australia and in other key markets around the world engaged to achieve this outcome and actively working through other operational and expense efficiency opportunities to continue to restore sustainable profitability over H2 FY25 and into H1 FY26.

CORPORATE

Key Growth Opportunities

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

• Sleep and Neurology business (including Somfit and Nexus 360 SaaS)
  • Over the last six months the Company has significantly increased its sales resources in the USA, which has delivered an increase in sales orders taken there for H1 FY25 of 208% over H1 FY24. The Company remains committed to this continued expansion in this key market. Importantly the USA business has delivered its first $1m of Somfit Saas revenues, which together with Nexus 360 enterprise revenues from the USA and around the world has led to a 50% increase in SaaS revenues for H1 FY25 compared to H1 FY24. The focus will be to continue to grow these revenues in the period ahead, as well as an initial focus on Somfit into the European market.

• Orion MEG Business
  • The Company will continue to focus on delivery of the two existing sales orders on hand for MEG
  • The Company will look to reintroduce MEG into the North American market in calendar 2025
  • The Company, will pursue the short-term opportunities for new MEG sales in other parts of the world.

• DWL Business:
  • Continue to shore up the existing DWL business and look to expand is revenue base by logically pursuing markets currently not being exploited for the existing product range.

Financial Outlook

Compumedics expects the identified key growth opportunities to deliver an increase in revenues and earnings in the current financial year.

The Company confirms revenues for FY25 to be more than $55m and EBITDA to be about $5m.

For further information please contact:

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

David Lawson
Chief Financial Officer
Compumedics Limited
Phone: + 61 3 8420 7300
Fax: +61 3 8420 7399

Authorised for lodgement by Compumedics Limited’s Board of Directors

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.