REVISED FINANCIAL RESULTS FOR 2001/2002
The Board of Directors of medical diagnostics company, Compumedics Ltd (ASX:CMP) announces that the company’s financial results for the financial year 2002 will be below the projections in its announcement to the Australian Stock Exchange on April 29, 2002.
Based on preliminary financial results, the company expects to report consolidated operating revenue for the year of approximately $20 million. While this result would represent a 20% increase on the previous year, it is around 10% less than the range indicated in the April announcement which was $22 to $24m. The lower than expected revenue is expected to result in the company recording an operating loss for the year compared to the April announcement where an operating profit range of $2.4 to $3.4m was estimated. These preliminary results are subject to final clarification and audit completion.
The lower revenue for the year is predominantly a result of lower than expected sales in the United States and European markets. The decision taken during this year to sell directly into these markets rather than through a distributor is now producing a greater rate of penetration into these important markets that have yet to convert to sales. The US market, the biggest in the world with 2400 specialist sleep treatment centres, is continuing to grow at well over 10% per annum.
Compumedics Executive Chairman, David Burton, said: “We know we have the technology the market wants and we now have clearer and direct access to the biggest markets in the world in the United States and Europe. We are now starting to see our investment in infrastructure within these vital markets bear fruit.”
The recently acquired Neuroscan neurological instrument business has performed to expectations and is likely to generate a small profit for the period. The full integration of Neuroscan into the rest of the Compumedics business is expected to deliver both technological and operational (manufacturing and distribution) synergies to the company.
Improving the productivity of all company operations is a key area of focus for Compumedics. “We have world class technology and now the sales organisational infrastructure to get our products to market directly. We are committed to continuously improving the efficiency of all of our operations.” Mr Burton said.
Looking ahead, Mr Burton commented: “This year’s result is disappointing, but we have made the necessary changes in order to drive the performance forward. The result this year does not alter the fundamentals. We have technology and products for the high growth sleep market. We have strengthened our position to penetrate that market.”
Compumedics is a global leader in the design and manufacture of technology systems for the diagnosis of sleep disorders, neurophysiology and cardiology. It holds 70% of the Australian sleep diagnostic market and has sold to leading international sleep and neurological centers. The company has offices in the United States, Asia and Europe to drive its growth into the burgeoning global markets for sleep and neuro-diagnostic products.