27 February 2017
Financial Report for Half-Year Ended 31 December 2016
- Total sales of $34.3m up on prior comparable period on a constant currency basis
- Ellex iTrack business segment global sales of $3.6m up 37% on prior comparable period on a constant currency basis with acceleration of sales growth in USA since 31 December 2016
- EBITDA of $3.2m up on prior comparable period after adjusting for investments in high-growth Ellex iTrack and 2RT for early macular degeneration business segments
- Approval received from Australian Therapeutic Goods Administration (TGA) on 17 February 2017 of new laser and ultrasound production facility at Mawson Lakes, South Australia
- Enhanced reporting of the business into three segments; Core Laser and Ultrasound, Ellex iTrack and 2RT for Early AMD provides additional visibility of high growth business segments
Adelaide, Australia, 27 February 2017 – Ellex Medical Lasers Limited (ASX:ELX), a global leader in medical devices for the diagnosis and treatment of eye disease, today released its financial results for the six months ended 31 December 2016. Ellex reported total revenue of$34.3 million, up 1% on the prior comparable period after adjusting for the change in the value of the Australian dollar against the Japanese Yen, US Dollar and Euro.
Commenting on the modest group revenue performance, Ellex CEO Tom Spurling said that the Company’s production facility had been unable to meet demand late in the half year following the highly successful launch of the Company’s new Tango Reflex multi-modality laser in November 2016. This resulted in a significant customer order backlog as at 31 December 2016.
Segment revenues for the Company’s fast-growing Ellex iTrack minimally invasive glaucoma surgery (MIGS) device were up 37% compared to the prior comparable period on a constant currency basis at $3.6 million.
“The Ellex iTrack product, which is manufactured at our Fremont facility in California, continues to progress nicely. We are pleased with the growing physician uptake in the USA.
“While the sales growth in the USA to 31 December 2016 of 15% was creditable, we are pleased that iTrack sales in January and February indicate an acceleration in growth with sales in those 2 months up 25% on the same two months in 2016, added Mr. Spurling.
EBITDA for the period was $3.2 million, which, adjusted for the investment made in the Ellex iTrack and 2RT for early AMD business segments was up on the $3.5 million in the prior comparable period. The planned investments in Ellex iTrack sales expansion, including the appointment of a senior sales manager plus additional sales representatives ($0.5 million), and the investment in sales and marketing for 2RT for early AMD will benefit these high growth segments in the future.
The Company’s production expansion project achieved a major milestone on 17 February 2017 with the approval by the TGA of the new site at Mawson Lakes for the manufacture of ophthalmic lasers and ultrasound.
“This approval not only allows our physical move to take place in March but also paves the way for notifications of the change to regulatory authorities, ultimately, in all our global markets. The achievement of this approval and associated planning and execution of an inventory build to buffer us through the various notification processes in 2017, while still building for sales in the first half of 2016, has been very complex,” added Mr Spurling.
The Company has, for the first time, reported its operations in three segments; Core Laser and Ultrasound, Ellex iTrack and 2RT for Early AMD.
“It has emerged in the recent period that each of these segments have different growth profiles, different investment needs and different challenges and we are managing them as such. Accordingly, we think this segment separation provides valuable information for our shareholders.” commented Mr Spurling
Additional detail on the Company’s half-year performance, including details of segment revenues, expenses and profitability, can be found in the attached investor presentation.
Download the Ellex Investor Presentation for the half year ended 31 December 2016 here.
Download the consolidated results for the half year ended 31 December 2016 here.
Ellex designs, develops, manufactures and sells innovative products that help eye surgeons around the world to effectively and efficiently treat eye disease. Ellex is a world leader in this field. Headquartered in Adelaide, Australia, Ellex has ophthalmic lasers and devices that treat glaucoma, retinal disease primarily caused by diabetes, secondary cataract and vitreous opacities, as well as age-related macular degeneration. Manufacturing is carried out in Adelaide, Australia and Fremont, California. Sales and service directly to eye surgeons is conducted via subsidiary offices in Minneapolis, Lyon, Berlin and Tokyo. A network of more than 50 distribution partners around the world services other markets.
For additional information about Ellex and its products, please visit www.ellex.com
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