COMPUMEDICS ACHIEVES RECORD REVENUES, INCREASING PROFITS AND INCREASING OPERATING CASH FOR YEAR ENDING JUNE 30, 2008 (APPENDIX 4E ATTACHED)
Leading Australian-based medical diagnostics devices company, Compumedics Limited is pleased to announce record revenues for the year ended 30 June, 2008 and has substantially improved its profitability and cash generation over the prior year.
Melbourne Australia, Monday, 1 September, 2008
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Leading Australian-based medical diagnostics devices company, Compumedics Limited (ASX: CMP), is pleased to announce record revenues for the year ended 30 June, 2008 and has substantially improved its profitability and cash generation over the prior year.
Highlights and Achievements for the year ended 30 June, 2008
• Financial performance of the business continues to improve leading to a $0.8m net profit after tax
• Sales increase to a record $38.5m , despite the adverse impact of unfavourable foreign exchange movements
• Lowest debt levels for the business since listing with a further reduction in debt by 18% to $2.8m
• Operating cash flows more than double to $1.8m
• R&D pipeline maintained
• New breakout SomniLink® SPAP® products ready for first shipment
Increasing profits for the year ended 30 June 2008
Compumedics achieved a net profit after tax in 2007-08 of $0.8 million compared with a profit of $0.1 million in the prior year. Revenue increased by 5% to a record $38.5 million from $36.7 million despite adverse currency movements. All key financial metrics continued to improve in 2007-08 including:
• EBITDA in 2007-08 was $1.8 million compared to a $1.3 million profit in 2006-07
• Operating cash flow improved significantly to $1.8 million in 2007-08 from $0.8 million in 2006-07
• Borrowings were reduced further from $3.4 million at June 2007 to $2.8 million as at June 2008, a further 18% reduction over the prior year
• Borrowing costs, were 16% lower at $0.7 million in 2008 compared to $0.9 million in 2007 and are expected to fall again in 2008-09
• Revenue growth achieved in USA (10% in US dollars), Australia (12%) and DWL (4%) offset by fall in Europe (-14%) and currency movements.
Compumedics has continued to improve its financial performance over the 2007-08 financial year, recording record revenues, an improved profit outcome and increasing levels of operating cash.
This has been achieved through increasing sales, despite the adverse currency movements, on-going cost vigilance and continued selective investment in future growth platforms for the business.
The business re-financed its banking facilities with HSBC half-way through the financial year and continues to work with its bankers to better tailor these facilities.
The Company maintained its R&D program and has progressed the SomniLink® SPAP®, through tooling to initial shipments, which are very close as we announce these results. Further the Company is soon to release its innovative long-term neurological-monitoring product, Neuvo® into the US market.
David Burton, CEO, said about Compumedics’ results,
“We are all pleased to see the Company increasing its profits year-on-year, particularly with record revenues, however much work remains to raise the profits to commercially acceptable levels. As we indicated last year the move to profitable trading in the core business was sustainable at those revenue streams and this has been confirmed as profits increase as revenues do.”
“The continuing improvement in profitability year-on-year was achieved due to the focussed efforts of Compumedics’ dedicated and highly skilled team of employees who continue to identify and deliver upon those critical things that enable the Company to more cost-effectively deliver its world-class products.”
“I am pleased that, in the face of a very tough set of economic circumstances for Australian based exporters, with the high Australian Dollar relative to the US dollar that, the Compumedics team was able to grow the level of revenues compared to recent years and deliver increasing profits. The Company continues to strengthen its position to return to its traditional growth outlook, whilst improving its financial position.”
All divisions of the Group improve
Compumedics’ businesses include its core sleep-diagnostics products and consumables from its Sleep Division, Doppler ultrasound blood-flow scanning products from its DWL Division, and brain function research and clinical neurology products from its Neuroscan and Neurosciences Divisions. Each of these divisions, except for Neurosciences, demonstrated continued improvement over the past year, whilst we maintained our on-going research and development programs to supply a pipeline of new products. In particular the Neuvo®, long-term monitoring device is currently being released in Europe and Asia with the US to follow by years-end.
Compumedics has also established a sleep-services business in the US market which contributed approximately $600k of revenue in the current year from effectively nothing in the prior period and which is growing quickly.
Compumedics will continue to pursue opportunities in each of the divisions of the group that will add profitable and sustainable growth and stand out growth where this is possible.
Affirmation of Compumedics’ Sleep-Treatment Strategy
Medigas Italia and Compumedics completed a letter of intent for the distribution of SomniLink® SPAP® systems in June 2007, which was announced to the ASX at that time. Twelve months from this important milestone Compumedics is poised to ship its first batch of commercial ready SomniLink® SPAP® products to Medigas.
Further to this, in July of this year the Company announced that Medigas Italia SrL has joined Compumedics’ share register with a strategic stake in Compumedics of 2.7%.
Outlook for 2008-09
Compumedics expects the business to grow overall in 2008-09 and for profitability to be enhanced through this growth and a continuing focus on costs and profitability for each part of the group.
For Further information:
Mr David Burton
Executive Chairman, CEO
Phone: + 61 3 8420 7300
Fax: +61 3 8420 7399
Mr David Lawson
Chief Financial Officer
Phone: + 61 3 8420 7300
Fax: +61 3 8420 7399
Investor Relations & Media Enquires:
Mr Rod North
Bourse Communications Pty Ltd
Phone: +61 3 9510 8309
Mobile: +61 (0) 408 670 706