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Melbourne-based medical device company Compumedics (ASX: CMP) has chalked up record orders totalling $32.8 million for the first half of FY25, almost $2 million more than forecast just three weeks ago, as the group’s US business continues to gain momentum.
The record orders are up 55 per cent from the same time a year earlier, excluding sales of the new magnetoencephalography (MEG) system.
Compumedics, which develops and manufactures diagnostic technology for sleep, brain, and ultrasonic blood flow monitoring, has revealed that sales orders in the US were up 208 per cent over the six months to the end of December, while Asia recorded a 115 per cent increase and Europe, where it is looking to grow further, a 10 per cent rise.
The sales performance in the first six months of this financial year has put Compumedics on track to post sales of more than $55 million for the period, excluding MEG, and EBITDA of more than $5 million. This compares with revenue of $26.4 million in the first half of FY24 and EBITDA of $2.2 million.
Despite the record sales orders, Compumedics says reported revenues, where orders have been shipped and invoiced, will lag the record sales orders in H1 FY25 and will be about $23.2 million or 13 per cent lower than the first half of FY24.
Excluding MEG, a high-value product that has long lead times from sale to installation, group revenue for the first half of this financial year will be about 6 per cent higher than the December half of FY24.
This is due to the company’s initial $4.7 million MEG sale to China’s prestigious Tianjin Normal University (TJNU) being booked in the first half FY24 and no MEG sales being record in the latest December half.
Compumedics’ founder and executive chairman Dr David Burton revealed to shareholders at the annual general meeting in October that the MEG at TJNU would soon be operational and that two new orders for China are scheduled for installation this calendar year.
The company’s rising fortunes in the US are being driven by the sleep business, led by the Somfit wearable device for collecting patients’ physiological data to help medicos diagnose sleep disorders, and the Neuroscan brain analysis business, which markets a variety of Quik-Cap Electrode Arrays for electroencephalogram (EEG) testing to measure electrical activity in the brain.
“Initial Somfit sales orders taken in the US were about $1 million in this key market, increasing from zero six months ago,” says the company.
“Sales momentum will continue to build as new sales resources are now coming on board, in line with our stated US strategy, building their pipelines and closing deals. As such, we are well placed to accelerate growth over H2 FY25.”
Compumedics says that the US business is already in, or progressing, trials and demonstrations with three large independent diagnostic testing facilities, with one of these facilities using the Somfit device for part of its home sleep testing business.
The company estimates its US market for home sleep apnoea testing to be worth between $150 million and $300 million.
Compumedics says it has taken an initial Somfit order from a global player specialising CPAP (continuous positive airway pressure) treatment for sleep apnoea. The company says it continues to work with other leading sleep service providers in Australia and other key markets around the world.
“This includes an initial $200,000 Somfit sale in Europe, as part of the H1 FY25 sales orders taken, representing the initial market activity in the next large market opportunity for Somfit,” says Compumedics.
“This Somfit sale into the European market helps underpin the growth in this market driven by sales into the traditional sleep diagnostic market and the neurological monitoring market.”
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