30 July 2015

Trading Update for the Full Year Ended 30 June 2015

Trading Update for the Full Year Ended 30 June 2015

Financial Highlights:

  • Revenue of approximately $62.5 million up by 15% on prior year
  • Highest revenue in history of business
  • Profit before tax of approximately $2.5 million is approximately double the PBT of the prior year

Ellex Medical Lasers Limited (ASX:ELX), a global leader in medical technologies for the diagnosis and treatment of eye disease, today announced that it expects to report earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $5.2 million and net profit before tax (NPBT) of approximately $2.5 million on revenues of $62.5 million for the full year ended 30 June 2015. These are preliminary and unaudited results. This compares with EBITDA of $2.9 million and NPBT of $1.3 million on revenues of $54.4 million for the prior corresponding period.

The Company’s strong operating result was driven by global sales of its treatment laser portfolio, including early-adopter sales of the proprietary 2RT™ laser, indicated for early age-related macular degeneration (AMD) and clinically significant macular edema (CSME). Additionally, sales of the Company’s Integre Pro™ retinal laser and the full year sales impact of the iTrack™ glaucoma surgical device, acquired on 1 January 2014, combined with the lower Australian Dollar relative to the US Dollar, also contributed to the positive result.

Commenting on the Company’s performance, Ellex CEO Tom Spurling stated: “Sales grew by 15% compared with last year. This marks the third consecutive year of revenue and NPBT growth for our business. It is important to note that the ratio of NPBT to sales is also growing.”

The strong result was struck on improved performance in all sales territories, with the exception of the Japanese business, which incurred an operating loss. Following several years of declining Ellex product sales in Japan, a new sales management structure was implemented in October/November 2014 and since then Ellex has been working to reinvigorate the Japanese business with new products.

An ageing population, higher rates of obesity and improved access to health care continue to drive overall market growth, offering significant growth potential for the Ellex business.

“Ellex operates across the four major areas of the eye disease treatment market; glaucoma, diabetic retinopathy, cataracts and AMD. Currently, the global annual spend on treatments for these diseases is dominated by pharmaceuticals and is estimated to be US$14 billion. We have significant growth potential in this market with our devices,” added Mr Spurling

Further detail regarding the market potential for Ellex products is addressed in the attached PDF.

Ellex expects to release its full year results for the 2015 financial year in the week commencing 24 August 2015.

ABOUT ELLEX

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

For further information on Ellex, please contact:

Tom Spurling, CEO
Ellex Medical Lasers Limited
82 Gilbert Street, Adelaide, SA, 5000
W +61 8 8104 5293 | M +61 417 818 658
tspurling@ellex.com

Maria Maieli, Company Secretary
Ellex Medical Lasers Limited
82 Gilbert Street, Adelaide, SA, 5000
W +61 8 8104 5200
mmaieli@ellex.com

Victor Previn, Chairman
Ellex Medical Lasers Limited
82 Gilbert Street, Adelaide, SA, 5000
W +61 8 8104 5200 | M +61 414 661 994
vprevin@ellex.com