UPDATED GUIDANCE TO MARKET ON JUNE 30, 2005 FINANCIAL RESULTS.
The company advises that its results to 30 June 2005 will indicate that revenue generated for the year will be approximately $38 million.
Melbourne, Australia – for immediate release, Friday 22nd July, 2005 (ASX:CMP).
The company advises that its results to 30 June 2005 will indicate that revenue generated for the year will be approximately $38 million. EBITDA for the year will be a loss of approximately $2.4 million of which about $1.1 million is non cash foreign exchange losses. The loss after tax will be approximately $3.5 million. The company generated a record for sales in June of in excess of $8 million representing in excess of 20% of revenue generated for the year.
The lower than anticipated earnings for the company was due to a number of factors including lower margins than expected particularly on the June sales and additional costs incurred late in the year due to the hire of new or additional sales and marketing executives, legal and other costs.
The company expects that it will build strongly on its 2005 performance during 2006 delivering revenues of in excess of $44 million. The company announced during the fourth quarter of last financial year the initiatives being taken to strengthen the sales and marketing teams in the US and Europe with appointments of high performance executives. These appointments would indicate that the company is likely to be able to continue to achieve the high revenue growth rates secured over the last 3 years. Also, given other initiatives including cost reduction and elimination of waste, the company expects to operate profitably for 2006.
The company, however, wishes to assess the magnitude of success of these measures as the year progresses and will announce to the market any material change to the above expectations as appropriate. The company is in discussion with its bank regarding the funding of the company’s growth strategy going forward into 2006 in light of the 2005 results.
The company anticipates releasing its audited results during the second half of August 2005.
Compumedics was founded in 1987 by current Executive Chairman and CEO, David Burton. In that year it established Australia’s first fully computerised sleep diagnostics clinic at Melbourne’s Epworth Hospital. In 1995 the company was selected to supply equipment to the US Sleep Heart Health Study, the world’s largest sleep study of its kind, currently exceeding 12,000 studies with 20,000 patients scheduled by 2008.
In 2002, the Company acquired US-based Neuroscan, boosting its presence in the neuro-diagnostics market, where the company supplies EEG and EMG devices to study electrical activity in the brain, spinal cord, nerves and muscles in the diagnosis and monitoring of neurological-based diseases.
In 2004, Compumedics acquired German based DWL, enabling Compumedics to expand its global operations into the neuro-vascular and cardio-vascular diagnostic arenas.
Since the 2000 financial year, the company has increased sales four-fold, reflecting product development initiatives combined with a strong United States distribution network, which accounts for 55% of sales.
The company’s core sleep-diagnostics technology is now being leveraged into the associated fields of neuro-diagnostics, brain research and blood-flow measurement. Combined, these markets have annual sales of more than USD900m. Compumedics also has businesses in supplies, technical service and educational services. Compumedics equipment is distributed in 60 countries globally. Headquarters are in Melbourne, Australia with offices in Germany, Singapore, Japan and the USA. Additional information can be obtained by visiting our website at www.compumedics.com
Chief Executive Officer
Ph: + 61 3 8420 7300
Chief Financial Officer & Company Secretary
Ph: + 1 915 225 0319