29 January 2016
Trading Update for the Half-Year Ended 31 December 2015
– Global sales of A$34.8m, an increase of 13% on the prior comparable period
– Estimated profit before tax up from A$1.3 million to A$1.8 million, a 38% increase
– Adjusted for new operating expenses that will benefit future periods, estimated profit before tax is up 71%
Ellex Medical Lasers Limited (ASX:ELX), a world leader in medical technologies for the diagnosis and treatment of eye disease, today announced that it expects to report a profit before tax of approximately A$1.8 million for the six months ended 31 December 2015. The result will be a material increase in the profit before tax of A$1.3 million reported for the six months ended 31 December 2014.
Group revenue for the six months ended 31 December 2015 is expected to be approximately A$34.8 million, a A$4.1 million (13%) increase compared to the prior corresponding period. The increase in revenue has several components, namely:
– Positive impact of organic growth in sales of Ellex-branded product in USA, Europe and Japan of 11% (A$3.4m)
– Positive impact of lower Australian dollar against US$, Euro and YEN 13% (A$4.1m)
– Discontinuation of contract manufacturing and lower margin third party product sales along with reduction in other third party product sales that has reduced revenue by 11% (A$3.4m)
Estimated Profit before tax
The increase of 38% in the estimated profit before tax has been driven by increasing brand equity of the latest generation of Ellex-branded products. The estimated profit before tax of A$1.8m has been negatively impacted by the following new operating expenses, that will benefit the second half of FY16 and beyond:
– Investment in iTrack growth initiatives and start up of a dedicated sales force in USA (approximately A$0.3m)
– Investment in additional regulatory resources to support the rollout of Integre Pro Scan™ in the USA (FDA approval achieved August 2015) and Japan (Japan FDA approval achieved December 2015) and to renew registrations for certain products in China (approximately A$0.3m)
See attached Trading Update Presentation for additional information on regional and product trends.
“We are pleased with our sales growth and improved margins. The release of the Integre Pro Scan™ product in Europe has been good and the continued take up of our innovative Ultra Q Reflex™ for treating floaters in all regions has been pleasing. The improvement in iTrack™ sales in the USA in the last couple of months of the period has also been exciting” commented Mr Tom Spurling, CEO.
These results are a preliminary estimate and prior to finalisation of the half yearly review by the Company’s Auditors. Ellex expects to report its half-year results for the year ended 31 December 2015 during the week beginning 23 February 2016 along with a detailed presentation for investors.
Ellex designs, develops, manufactures and sells innovative product 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
For further information on Ellex please contact: