Compumedics Achieves Record Sales Growth in H1 FY25
CMP (CMP) Share Update January 2025 Tuesday 14th
Compumedics Reports Record H1 FY25 Sales Orders Driven by U.S. Growth
Compumedics Limited (ASX: CMP) has reported record sales orders for the first half of fiscal year 2025, driven by significant growth in the United States market.
Instant Summary:
- Record H1 FY25 sales orders of $32.8 million, up 55% from last year.
- U.S. sales orders increased by 208% compared to the previous year.
- Asia sales orders rose by 115%, and Europe by 10% year-on-year.
- Somfit sales orders increased by 70%, reaching $1.9 million.
- FY25 sales guidance exceeds $55 million, with EBITDA above $5 million.
Sales Performance Overview
Compumedics Limited has achieved a remarkable milestone in the first half of fiscal year 2025, with sales orders reaching a record $32.8 million. This represents a 55% increase compared to the same period last year, excluding MEG sales. The company's U.S. operations were a significant contributor to this growth, with sales orders soaring by 208% year-on-year.
In addition to the impressive performance in the United States, Compumedics also saw substantial growth in other regions. Sales orders in Asia increased by 115%, while Europe experienced a 10% rise compared to the previous year. This broad-based growth underscores the company's expanding global footprint and the increasing demand for its diagnostic technologies.
Somfit and Market Opportunities
The company's Somfit product line also demonstrated robust growth, with sales orders rising by 70% to approximately $1.9 million. Notably, Compumedics secured an initial sale to a large global CPAP player, highlighting the product's potential in the sleep diagnostics market. The Somfit device is currently undergoing trials with three large Independent Diagnostic Testing Facilities (IDTFs) in the U.S., which could further accelerate sales in the coming months.
The home sleep apnea test (HST) market in the U.S. presents a significant opportunity for Compumedics, with an estimated 3 to 4 million tests conducted annually. This market is valued between $150 million and $300 million, offering substantial growth potential for the company.
Financial Guidance and Outlook
Compumedics has provided guidance for fiscal year 2025, projecting sales of more than $55 million and an EBITDA exceeding $5 million. The company anticipates that EBITDA will be weighted towards the second half of the year, as marketing and development costs incurred in the first half begin to yield benefits in the latter part of the fiscal year.
The company plans to review its FY25 guidance following the finalization of the H1 FY25 results and the release of the Appendix 4D, expected around February 24, 2025.
The record sales growth reported by Compumedics is likely to have a positive impact on the company's stock price, as investors respond to the strong performance in key markets. The substantial increase in U.S. sales orders, in particular, highlights the company's successful expansion strategy and positions it well for continued growth.
Investor Reaction:
Analysts are likely to view Compumedics' performance favorably, given the impressive sales growth across multiple regions. The company's ability to secure significant orders in the competitive U.S. market is expected to bolster investor confidence in its long-term growth prospects.
Conclusion:
Investors should keep an eye on Compumedics' upcoming financial results and guidance updates, as these will provide further insights into the company's performance and strategic direction. With a strong foundation in place, Compumedics appears well-positioned to capitalize on emerging opportunities in the global diagnostic market.