Portland's strategy on track

Portland Orthopedics' (ASX: PLD) strategy of expanding the distribution of its hip replacement products in the US and Australian markets seems to be working, investors were told yesterday, but the company is yet to see profitability.

By the end of June Portland's artifical hips will have been implanted in 480 US patients and 100 Australian patients within the last 12 months, according to company predictions.

Portland has also lodged a non-renounceable rights issue, offering existing shareholders a one-for-one deal to raise up to $4 million.

The company said it had made major reductions in its operating costs, and is seeing a double-figure revenue increase in 2008 compared to the first half of the financial year.

Portland's next immediate goal is to achieve profitability and positive cash flow.