27 February 2014
Financial Results for the half-year ended 31 December 2013
- 18% increase in revenues
- Substantial increase in profit before tax
- Outlook is that second-half sales are forecast to be higher than sales for the corresponding period in the 2013 financial year
Adelaide, Australia, 27 February 2014 – Ellex Medical Lasers Limited (ASX:ELX), a pioneer in medical technologies for the diagnosis and treatment of eye disease, today announced its financial results for the six months ended 31 December 2013.
Consistent with earnings guidance on 30 January 2014, profit before tax for the six months ended 31 December 2013 was $654,000, recorded on revenues of $25.9 million. This compares with a profit before tax of $59,000 and revenues of $22.0 million for the six months ended 31 December 2012.
The 18% increase in revenues was primarily attributable to growth in sales in the USA following the introduction in July 2013 of Ellex’s world-leading Selective Laser Trabeculoplasty (SLT) range of ophthalmic lasers for the treatment of glaucoma. Sales in the USA were more than double (117%) the sales in the prior comparative period. Good improvements in sales were also recorded in our Asian and South American markets.
The impact of the factors that increased the sales was mitigated by falls in sales in Europe where poor and uncertain economic conditions continue to challenge our business and in Japan where the devaluation of the YEN lowered revenues.
“The impact our SLT lasers have had in the USA market has been very pleasing. We have managed to replicate our strong position outside the USA. An independent market assessment by Market Scope LLC now places Ellex as the leading supplier of SLT lasers in the world”, commented Mr Tom Spurling, CEO.
Operating costs increased compared with the prior period, due to increase in production staff, our expansion of the USA sales team and engineering to support new product introductions.
The cash reserves of the business increased during the period following two successful capital placements (in September 2013 and December 2013) that raised a total of $6 million and a further $1.3 million of cash was generated from operations. Part of the cash generated was applied to reduce debt, acquire the iScience canaloplasty business on 31 December 2013 and to accelerate the LEAD trial for 2RTTM.
Commenting on the outlook for the year, Mr Spurling said “The outlook for the second-half of the fiscal year is strong. SLT demand in the USA continues to be strong and demand in Japan is rising in this quarter as a result of consumption tax changes due on 1 April 2014. As a result, subject to continuation of these trends, we expect group sales for the second-half to be higher than sales for the half-year ended 30 June 2013.”
Ellex Medical Lasers Limited (ASX:ELX) is a pioneer in the development of medical technologies for the diagnosis and treatment of eye disease. With more than 20,000 systems delivered to the market, Ellex has evolved since 1985 from a manufacturing company of primarily OEM products, to direct marketing of its own branded products through subsidiaries in the United States, Japan, France, Germany and Australia, and a network of distribution partners in more than 100 countries. In recent years, Ellex has diversified its product range beyond lasers and ultrasound equipment to include distribution of a number of complementary third-party ophthalmic products. Recently Ellex acquired the canaloplasty micro catheter glaucoma treatment, a recurring revenue stream, which Ellex manufactures at a plant in Menlo Park, California. For additional information about Ellex and its products, please visit www.ellex.com.
For further information on Ellex please contact:
|Tom Spurling, CEO||Victor Previn, Chairman|
|Ellex Medical Lasers Limited||Ellex Medical Lasers Limited|
|82 Gilbert Street, Adelaide, SA, 5000||82 Gilbert Street, Adelaide, SA, 5000|
|W +61 8 8104 5293 | M +61 417 818 658||W +61 8 8104 5200 | M +61 414 661 994|
|Maria Maieli, Company Secretary|
|Ellex Medical Lasers Limited|
|82 Gilbert Street, Adelaide, SA, 5000|
|W +61 8 8104 5200|