COMPUMEDICS LIMITED ANNOUNCES RECORD FINANCIAL RESULTS
In its first year as a public company, Compumedics Limited (ASX: CMP) today announced record revenues and profits.
The full year’s results for 2001 show a net profit of $1.971 million exceeding the prospectus forecast of $1.947 million. The Company’s record revenue of $18.317 million represented a 76% increase on the previous year and exceeded the prospectus forecast of $16.371 million.
Compumedics develops and manufactures diagnostic technologies for sleep and associated medical disorders. In addition to its sales in Australia, the Company exports a range of products to USA, Europe and Asia.
Executive Chairman, Mr David Burton, said Compumedics was very pleased with the excellent first year results attributing the Company’s success to Management’s clear focus on producing highly innovative products for the large and expanding global sleep disorder market.
“The exceptionally strong sales growth in all regions across the Company’s range of products have their genesis in the investment in global operations, initially undertaken 18 months ago, including establishment of our USA office.
“The successful release of the E-Series PSG and Siesta devices have underpinned our strong earnings and revenue performance. These products epitomise the quality and innovation being delivered to all our customers,” Mr Burton said.
Highlights of the results for the twelve months ending 30 June, 2001 include: · Total revenue up 76% on previous corresponding period to $18.317m. · Profit After Tax up $2.066m to $1.971m. · USA business generates $7.2m in sales for the full year. · Strong market acceptance of the new generation E-Series PSG across all territories.
The full year results are summarised below:
|June 2001||June 2000||% Change|
|Total Revenue (A$’000)||18,317||10,399||76%|
|Earnings Before Interest, Tax||3,857||317||1,117%|
|Depreciation and Amortisation (A$’000)||(1,183)||(363)||226%|
|Interest Income/ (Expense) (A$’000)||127||(230)||n/a|
|Operating Profit Before Abnormals and Tax (A$’000)||2,801||(276)||n/a|
|Profit After Tax (A$’000)||1,971||(95)||n/a|
|Earnings Per Share (cents)||1.7¢||n/a||n/a|
Total revenue grew by 76% in comparison to the previous corresponding period, to a total of $18.317m. This result reflected the realisation of benefits from Compumedics’ new USA office and the company’s new distribution arrangements for the USA and Europe that were put in place last year. Strong sales of the new E-Series PSG in the USA combined with E-Series EEG sales in Australia also contributed to the full year results.
Profit after tax of A$1.971m reversed the loss for the corresponding period last year of $0.095m. The Compumedics Board has not declared a dividend – a move that is in line with Compumedics’ stated policy of using cash to fund the growth of the business.
US sales revenue of A$7.2m was more than double the corresponding period. The growth reflects the success of the establishment of Compumedics’ new direct USA office, where sales staff increased from 4 to 6, and the distribution arrangements, with Oxford Instruments Medical for the key USA hospital market.
Strong market acceptance of the E-Series PSG combined with the release of the Siesta in the second half of the year enabled the USA office to outperform prospectus expectations by 33% on a revenue basis.
Sales revenue of A$3.0m increased 68% over the previous corresponding period. The increase in sales revenues reflects the new distribution arrangements in the region with Oxford Instruments Medical, as master distributor for our sleep products in this territory.
It is with regret we announce the resignation of Mr. Peter Fawcett at the end of August this year for personal reasons. Mr. Fawcett was employed to progress our direct business in this territory. The company is actively searching for a replacement.
Sales revenue in the Asian region of $2.9m increased 109% over the previous corresponding period. Growth in the Japanese market for sleep equipment as well as the establishment of new distributors in other parts of Asia Pacific account for much of this increase in sales.
Sales revenue in Australia of $3.5m increased 41% over the previous corresponding period. Even with the Company’s 70% market share, growth in Australia has been achieved through new products such as Siesta and E-Series PSG including the E-Series EEG for the neurological market – this being a new market for the company.
There were a number of technology achievements during the year:
Compumedics introduced its new laboratory based sleep system, the E-Series PSG in all territories. FDA clearance for Siesta was obtained December 2000, three months after application for it. First shipments of Somté (Compumedics’ new cardiac/sleep device) were made to Japan where clinical evaluation is currently underway.
A memorandum of understanding was signed between Compumedics and The Baker Medical Research Institute, a leading medical research institute, to advance the take up of the Somté device. Patent applications were submitted for both in-depth anaesthesia and driver fatigue in the second half of the year.
The Company continues to progress the underlying technology relating to its growth platforms through the application for patents and continued clinical testing. Further announcements regarding future developments will be made in due course.
Compumedics expects sustained and increasing demand for its products in the global sleep disorder market. With key distribution networks in place in USA and Europe, and strong investment in customer service planned for 2002, the Company anticipates solid growth in revenue and earnings during this financial year.