is 14c cmp's turnaround support level again ?

Compumedics Limited (ASX:CMP)
Full Year Results Released on 13 September, 2005
Extract from Page 1 of 4

ASX / MEDIA RELEASE
Financial Results for Year Ending June 30, 2005

RECORD REVENUES OF $38 MILLION
Melbourne Australia, Tuesday, September 13, 2005
Medical diagnostics company, Compumedics Ltd (ASX: CMP) today reported financial results for the year ended June 30, 2005.

Revenues for the year ended June 30, 2005 were $38 million, a 12% increase over the year ended June 30, 2004, and a loss after tax of $3.9m, compared to a profit of $2.4m for the previous corresponding period.

The trading result was affected by lower sales in the core business, one-off costs associated with the acquisition of DWL in the US, restructuring costs associated with global sales and marketing, and non-cash foreign-exchange losses
associated with the US and European businesses as the Australian dollar continued to
appreciate against these currencies.
Below par operational margins also contributed to the loss.
This disappointing result is being addressed by an operational restructure and a series
of cost reduction initiatives are now under way. Increased marketing and sales expenses
have been incurred to underpin future growth.

Compumedics’ Executive Chairman & CEO, David Burton, said: “This year was an extraordinary
year of correction and adjustment at Compumedics.
While we have felt some shortterm
pain, I believe we are making the hard decisions and changes necessary to sustain
growth and return to profitability moving forward. Currently the strength of the sales pipelines
and the outcomes of our cost-reduction programs appear to reflect positively for the financial
year ahead. The company must continue on its growth trajectory to increase its value. Our
technology and market developments are on target and we expect sustainable revenue
growth with profits and cash generation to return in 2006.”
Earnings before interest, tax, depreciation and amortization (EBITDA) declined to a loss of
$2.6m for the year ended June 30, 2005 compared to a $2.9m profit in the previous
corresponding period.

Research and development expenses, at $7.8m for the year ended June 30, 2005, were
21% of revenues.

“This high level of investment in R&D reflects Compumedics’ continued strategic commitment to sleep- and brain-function technology, along with our thriving pipeline
of new products and technology, underpinning our above industry-average sales growth.

The increase in R&D expenditure as a percentage of sales was primarily driven by the
acquisition of DWL in the current year. Compumedics expects that, as it continues to grow,
R&D expenses will level out to around 12% of revenues on an on-going basis within 3 years,
while also serving to underpin many years of sustainable growth,” said Mr. Burton.
Net cash for the year ended June 30, 2005 decreased by $3.7m. This compares to a $2.9m
increase in cash for the year ended June 30, 2004. The decrease in cash was driven by the
operating performance of the business, which is being addressed. In addition, the Company
repaid loans of $1.4m and paid a dividend of $0.7m.