is this cmp's turnaround year ?? CMP is a company that has disappointed the market after spending a large amount of revenue on R&D last year ,but reading the recent report to the ASX they seem to be saying they may be back on track this year ,
Who knows ????but I like the story so I picked up a few more
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Melbourne Australia, Thursday, January 12, 2006
ASX / MEDIA RELEASE copy from pdf
Medical diagnostics company Compumedics Ltd (ASX: CMP) previously indicated at the
AGM that sales in the first quarter of the year had been unexpectedly slow.
Slow sales continued in the US clinical and research businesses in the second quarter but this was
partially compensated for through stronger performances in other business units during
that period, some of which were much stronger than in the prior period.
Overall, the first half sales will be approximately $18 million (with about $1.2 million
orders on hand) as against $19.3 million sales recorded in the prior year with $ 0.7m orders on hand.
The company considers this result to be credible given the slump in market conditions for key units in the US due to the adverse impact of the weakened US economy and the restructuring undertaken
through the course of the 2005 calendar year.
The USA clinical business has experienced improved performance over the recent
periods and the product sales pipelines are at strong levels.
Management is focused on converting this pipeline into sales for the second half year and success in this will drive results for the full year.
However, given the uncertainties of the USA market, the company does not propose to give guidance as to the likely outcome for the year,
although it still considers the previous 2006 sales guidance of $38 million and a return to
positive EBITDA earnings in the second half of the financial year to be achievable.
The company also indicated at the AGM that costs of approximately $2 million on an
annualised basis were to be taken out of the business.
Another $1 million of cost savings on an annualised basis have since been identified, particularly in the US. ,
These savings will be reflected during the forthcoming six months.
The company also indicated previously that it was in a contractual dispute with its former
distributor for sleep products in Europe.
The company advises that settlement has been
reached yesterday with the former distributor, which will result in a USD1.51m
(approximately
AUD2.0m) benefit to the company, of which USD1.45m will be received
in cash.
This income will be booked by the company in its accounts in early 2006.
The company also indicated at the AGM that it was in discussions with its bank
regarding continued financial support during the ongoing business turnaround.
The bank continues to express ongoing support for the company during this performance
turnaround phase.
Despite a number of challenges confronting the business, the results indicate that the
company is now making headway with its most recent US restructure activities; Europe
is once again demonstrating growth and the Australia-New Zealand and Asia regions are
performing well.
Compumedics Limited (ASX:CMP) Released on 12 January, 2006Page 2 of 2
The recent investment in the significant strengthening of Compumedics’ sales and
marketing resources across USA, Europe and Asia coupled with cost reduction, the
company believes, is the right strategy, evidenced by the re-emergence of sales growth
in our key global markets.
The company’s view of its performance will remain cautious and its focus continues to intensify on profitability as well as stronger and more sustainable growth.
The company is appreciative of investor focus upon the longer term potential performance of Compumedics and will continue to endeavour to hasten earnings improvement when and where possible.
Yours sincerely,
David Burton CEO, Chairman
Compumedics Limited
For further information:
David Burton
Executive Chairman, CEO
Phone: +61 3 8420 7300
Fax: +61 3 8420 7399
David Lawson
Company Secretary /CFO
Phone: +0011 1 915 225 0319
Fax: +0011 1 915 845 2965
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