COMPUMEDICS LIMITED STRENGTHENS ITS BUSINESS IN GERMANY
Compumedics today announced the achievement of a major milestone for its newly established German based sleep business after winning a $400k prestigious 12-bed sleep-diagnostics contract.
Melbourne, Australia, Wednesday 1 April, 2009
Leading medical device company, Compumedics Limited (ASX:CMP) today announced the achievement of a major milestone for its newly established German based sleep business after winning a $400k prestigious 12-bed sleep-diagnostics contract.
The sleep center is located at Schillerhöhe Hospital in Gerlingen and is a well established and respected sleep facility. The Schillerhöhe Hospital sleep center will become a key European reference site for Compumedics. The hospital has 870 beds and administers over 30,000 patients annually of which over 2000 undertake a sleep diagnostic study. Germany is the world’s third largest medical device market and Europe’s largest. As such Germany is key driver for Compumedics’ future growth in Europe, having over 300 accredited sleep clinics and a market potential of about USD36 million per annum. The winning of this contract confirms Compumedics strategic advancement and progress in developing Europe as a principal market for the Company and the Company’s continued focus on direct sales in key global markets.
The establishment of the German business follows the development of the Company’s US direct-sales business, now responsible for approximately 40% of the Company’s annual sales of about $40m per annum. Revenues in the USA have grown from about USD1 million in 2000 to USD13 million in 2008, representing year-on-year growth of approximately 40%.
Mr. Markus Rosenstingl, Compumedics’ Germany Sleep Business Manager, said,
“This is a particularly important milestone as it marks the first reference centre since establishing our direct presence in Germany earlier this year. This installation sets a new standard for sleep centres in Germany.”
The hospital’s sleep-laboratory management was impressed with Compumedics’ Somté PSG. In particular, its compact size and its versatility comply with the latest sleep testing-standards. Somté PSG is an ambulatory system and allows night staff to easily check on a patient via Somté PSG’s in-built display enabling staff to make immediate adjustments where necessary. The hospital’s sleep-laboratory management commented that Somté PSG is ideal to streamline its sleep laboratory operations and save time. The gold-standard ProFusion PSG3 software also received praise for its comprehensive set of features, incorporating advanced automation tools, without compromising ease of use.
A key requirement of Schillerhöhe Hospital was compliance of the sleep laboratory with the hospital’s latest IT infrastructure. Compumedics’ state-of-the-art, network-enabled sleep solution seamlessly integrated into Schillerhöhe Hospital’s virtual servers allowing the sleep laboratory to operate in a “Cloud Computing” environment, the latest in IT infrastructure. The head of the hospital’s information system said, “Compumedics was the right partner for Schillerhöhe Hospital.”
Mr. David Burton, Compumedics’ Chairman said of this milestone,
“This is a significant step for Compumedics’ in the establishment and affirmation of its direct sleep-sales strategy for Germany. It marks the commencement of a strong German business, similar to the direct sales presence the Company has developed in the USA market. The new business growth opportunities in Germany, one of the world’s major medical device markets, coupled with Compumedics’ recent financial results, reinforce the underlying strength and value of Compumedics.”
Compumedics recently announced for the six-month period to 31 December 2008, a $2.5 m NPAT, the highest level of operating cash for any six month period in more than 4 years and the fifth consecutive positive operating cash report to market. Over the past three years, the Company’s earnings have increased by AUD5.0 m, debt reduced from AUD6.5 m to AUD1.9 m, manufacturing gross margins have improved by 7%, and costs have reduced by AUD5.0 m. The Company has also consistently generated positive cash over this period and is now positioned for global expansion.
For further information, please contact:
Mr. David Burton
Executive Chairman & CEO
Tel: +61 3 8420 7300
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