AtCor Medical Holdings Limited (AtCor Medical), a developer and marketer of products for cardiovascular disease, has reported sales of AUD5.4 million for the six months of fiscal 2009, up 76%, compared with the sales in the year-ago period. It has also reported profit of AUD0.18 million for the six months of fiscal 2009, compared with net loss of AUD1.6 million in the year-ago period.
On a constant currency basis, sales increased by 64% over H1 2008.
The company’s positive earnings resulted from its strong sales performance, continued focus on expense management and the depreciation of the Australian dollar against AtCor’s major export currencies. Expenses were up by 12% compared with H1 2008, with approximately 40% of this increase attributable to the Australian dollar devaluation and 30% attributable to higher sales commissions and bonuses related to company performance. Gross margin for the half was in line with H1 2008 at 83%.
Operating cash outflow fell by over 50%. With increasing sales, strong trade receivables and a continued reduction in cash outflow expected, AtCor does not anticipate a need to raise funds for operating purposes in the foreseeable future.
Outlook
AtCor Medical chief executive officer Duncan Ross said, ‘We are delighted by these strong results, which reflect growing appreciation of the importance of central blood pressures and of the key role that SphygmoCor can play in patient care. We are off to a good start for the second half and maintain our guidance of a 55% sales increase to over $10 million for the full year. As the vast majority of our sales are exports whilst non-sales related expenses are incurred in Australian dollars, AtCor will continue to benefit from the discount of the AUD against the major currencies.
‘We are focused on leveraging our expense investment to optimize sales and margin as we drive the business towards our goal of continuing positive cash flow and earnings.’