Medical device company Compumedics (ASX: CMP) has reported an impressive surge in sales, projecting a revenue of $26 million for H1 FY24. This marks a major 35% increase compared to H1 FY23. The performance is attributed to key factors including the Company’s second MEG sale to Tianjin Normal University (TJNU) in China and successful initial sales of the Somfit device in the Australian market.
Compumedics experienced notable sales across its sleep and neuro businesses in both Australia and Asia. Still, it saw softer sales in the USA and DWL (doppler sonography) businesses during H1 FY24. The Company anticipates a return to more normal trading conditions in the second half of the fiscal year.
Delving into the specifics, Compumedics revealed that, during H1 FY24, it achieved a record $30.3 million in new sales orders, representing a 74% growth compared to H1 FY23, which recorded $17.4 million. Two new MEG sales orders, totaling $9.2 million, contributed to this achievement.
Excluding these MEG sales orders, new sales orders for H1 FY24 were $21.1 million, reflecting a substantial 21% increase on a like-for-like basis compared to H1 FY23. Growth in new sales orders, excluding MEG, was primarily driven by expanding Australian and Asian businesses, partially offset by softer performance in the USA and DWL business.
The Somfit sleep technology platform, including SaaS revenues, made initial sales of approximately $1 million in the Australian market during H1 FY24. Overall, Compumedics expects the situation to improve, foreseeing better trading conditions in H2 FY24 for both the USA and DWL businesses.
The Company’s market strategy for point-of-care testing revolves around an initial focus in Australia and the USA, with FDA approval in the latter. The strategy targets two main areas: the existing non-reimbursable Obstructive Sleep Apnoea (OSA) Home Sleep Testing (HST) market in Australia and both reimbursable and non-reimbursable segments in the USA. Additionally, it aims to tap into the primary care market for sleep screening, OSA diagnosis, and supporting the diagnosis of insomnia and circadian rhythm disorders.
In the realm of the MEG business, Compumedics is actively installing its second MEG sale and first MEG contract in Asia, specifically at Tianjin Normal University (TJNU) in Tianjin, China. MEG is a functional neuroimaging technique, maps brain activity by recording magnetic fields produced naturally in the brain. These sales are expected to be shipped and installed during the course of calendar year 2025.
Compumedics is currently exploring various options for further development in the MEG business. It also secured the FDA approval for Somfit just last month. With these developments underway, its focus is on commercialising and expanding the base of its medical devices.
Alinda is a Business Reporter for The Sentiment
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