14 August 2013
Trading Update: Full-Year Result for 2013 Financial Year
Adelaide, Australia, 14 August 2013 – Ellex Medical Lasers Limited (ASX:ELX), a pioneer in medical technologies for the diagnosis and treatment of eye disease, today announced that it expects Net Profit Before Tax (NPBT) to be between $100,000 and $200,000 for the year ended 30 June 2013. This compares to NPBT of $1.1 million for the year ended 30 June 2012.
Commenting on the Company’s performance, Ellex CEO Tom Spurling stated: “Foreign exchange continued to pose challenges for our business. For most of the 2013 financial year we saw a continuation of the high Australian dollar against both the US dollar and the Euro. This was compounded by a significant strengthening of the Australian dollar against the Japanese Yen during 2013.”
Despite a 5% improvement in revenues from $19.8 million to $20.8 million for the last half compared to the prior comparable period, full-year revenues are expected to be 9.8% lower compared to the 2012 financial year.
As previously reported, in the 30 June 2012 year the Company achieved sales revenue from a non-recurring sale into the Australian optometry market. After allowing for this, revenue for the year ended 30 June 2013 fell by approximately 3.5% compared to the prior comparable period.
The revenue lift in the second half of the 2013 financial year is attributable to improved service and contract manufacturing revenues, as well as initial sales results of new product introductions. Ellex achieved a number of operating efficiencies during the 2013 financial year, which have reduced overall operating costs and improved product margins.
The Company embarked on an aggressive product development strategy during the 2013 financial year, with four new products launched. The initial customer response to these new products appears to be favourable.
“We believe that our new product introductions provide us with a platform for sales growth and improved profitability in the immediate term and beyond. The opportunity to sell our glaucoma laser technology in the US market also offers significant potential for our business. The recent fall in the Australian dollar is likely to assist Ellex with its exports,” added Mr. Spurling.
Each of these factors has the potential to materially improve the profitability of Ellex for the year ending 30 June 2014 and the Company is focused on achieving this goal. Ellex expects to release its full-year results for the year ended 30 June 2013 during the week commencing 26 August 2013
Ellex Medical Lasers Limited (ASX:ELX) is a pioneer in the development of medical technologies for the diagnosis and treatment of eye disease. Since 1985, Ellex has evolved from a manufacturing company of primarily OEM products to direct marketing of its own branded products through subsidiaries in the United States, Japan, Germany and Australia, and a network of distribution partners in more than 100 countries. Today, more than 20,000 Ellex laser and imaging systems are used worldwide in the fight against blindness. In more recent times, Ellex has diversified its product range to include distribution of a number of complementary third-party ophthalmic products.