COMPUMEDICS FINALISES SETTLEMENT WITH FORMER US DISTRIBUTOR
Compumedics Ltd (ASX:CMP) the Australian-based global sleep diagnostic manufacturer, has settled a legal dispute with its former US distributor, Medical Graphics Corporation (MGC). The dispute surrounds the definitions of a termination agreement entered into in May 2000.
Compumedics terminated its agreement with MGC as part of its strategy to develop its own sales resources in its key markets and therefore have dedicated sales staff with good product knowledge in those markets.
Executive chairman, David Burton, said today that the Compumedics sales office in Minneapolis, Minnesota, gives the company a much closer interface with its customers and also enables Compumedics to get new products to market quicker.
“US sales more than doubled to $7.2 million last financial year and are strong again this year,” Mr. Burton said.
The terms of the settlement agreement are confidential but involved the re-purchase of inventory from MGC. The settlement agreement is final.
“This settlement is a satisfactory resolution which allows Compumedics to focus on the on-going growth of the business both in the US and the rest of the world and the opportunities currently in front of it,” Mr. Burton said.
Compumedics Limited, founded in 1987, is a global leader in the design and manufacture of high-technology systems for the diagnosis of sleep disorders, neuro-physiology, 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 neurodiagnostic products.