COMPUMEDICS’ EARNINGS UPDATE FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2002
Compumedics Ltd (ASX: CMP) announced today that whilst the second half of the year was tracking to plan at this point it was unlikely to make up for the first half shortfall and therefore its full year numbers compared to prospectus are unlikely to be met.
Compumedics expects its total revenues for the full financial year to 30 June 2002 to be in the range of $22 to $24m compared to prospectus of $25m and profits after tax to be in the range of $2.2m to $3.2m respectively compared to prospectus of $4.4m.
The shortfall reflects the fact that the Company did not achieve plan in the first half primarily as a result of international events at that time.
The Company’s profits after tax are more sensitive to any shortfall in revenues at this time in the Company’s development due to overheads growing in line with the revenue growth of the business. This results from overheads being put in place to support the current and future growth of the business. The sensitivity of profits after tax to any shortfall in profits will diminish over the next year or two as revenue growth continues but overheads do not grow in proportion to revenues. In the short term the Company continues to review its cost base and has removed some positions and not replaced others over the last two months.
Mr. Burton, Executive Chairman of Compumedics noted, “The Company continues to work on a number of other major initiatives at this time, which will be announced in due course. These coupled with the acquisition of the Neuroscan business provide a platform for the on-going growth of the Company into a global medical device business.”
Compumedics Limited, founded in 1987, is a global leader in the design and manufacture of technology leading systems for the diagnosis of sleep disorders, neurophysiology, and cardiology. Compumedics Ltd. was listed on the Australian Stock Exchange (CMP) as of December of 2000. Compumedics has corporate headquarters in Melbourne, Australia and offices in the United States, Asia, and Europe. Compumedics holds 70% share of the sleep diagnostic market in Australia and is fast becoming a major presence in the US marketplace for both its sleep diagnostic and its neuro-diagnostic products.