Compumedics revenues, losses up

Compumedics' (ASX:CMP) revenues for the 2002-2003 financial year were up 62 per cent to AUD$32 million, reflecting strong growth in the company's sleep diagnostics business.

But despite earnings before interest, tax, depreciation and amortisation of $2.1 million, up from a loss of $0.9 million during the 2001-2002 financial year, the company had an after-tax loss of $18.7 million due to a write-off of R&D costs and intellectual property acquired, as well as a revision of revenue recognition due to the shift from a distribution model to direct sales, which reduced revenues by $0.9 million.

"Essentially, the entire after-tax loss reflects those changes," said CFO David Lawson. The changes were made, he said, to bring the company into alignment with best practice as the company grows.

The company's USA Neuroscience business increased its sales revenue 300 per cent in its first full year with the group, positioning it to significantly expand its US neurological diagnostic market share. And following the signing of a distribution deal with Drager Medical, European sleep diagnostic sales increased 45 per cent.

"We now have a strong and rapidly growing customer base, excellent partners in Drager Medical in Europe and Teijin in Japan, and an effective direct sales network in the USA. In particular high-growth markets for Compumedics such as Europe, Japan and China seem to be well positioned for sustainable growth," said executive chairman David Burton in a statement.

Lawson said the company expected revenues and earnings to continue to grow, with a critical mass of infrastructure now in place.

Compumedics' Year

• July 2002: signs a letter of intent with Drager Medical for supply and development of sleep diagnostic technology.
• October 2002: ARC grant awarded to UTS and Compumedics to develop devices to monitor driver fatigue; two US patents approved for novel sleep disorder treatments.
• December 2002: new Abbotsford headquarters opened by Federal Trade Minister Mark Vaile.
• January 2003: Canadian and US approvals of portable Somte‚ sleep-cardiology recording system.
• May 2003: signs European distribution deal with Drager Medical worth $10 million over three years.