Global medical device business Compumedics (ASX: CMP) has delivered record sale orders in the first half of the 2025 financial year (FY25), driven by strong growth in its US sleep and Neuroscan brain analysis operations.
In total, sale orders of $32.8 million jumped by 55 per cent from the same time last year, excluding the group’s magnetoencephalography (MEG) brain functional imaging sensing system.
In the key American market, sale orders rocketed by more than 200 per cent from twelve months prior. Asia-based sale orders were also 115 per cent higher during this period.
Somfit gains traction
The robust performance in the US includes about $1 million in sale orders for the company’s Somfit technology. This compares to zero just six months ago.
Somfit consists of a suite of sleep diagnostic products which only received clearance from the US Food and Drug Administration (FDA) in late 2023. This formal approval paved the way for commercialisation of the technology in the lucrative American market.
Globally, Somfit sale orders of $1.9 million in the first half of FY25 lifted by 70 per cent from the previous corresponding period.
Here, Compumedics nailed down an initial order for Somfit from a global industry player operating in the sleep apnea treatment sector. It also continues to collaborate with leading sleep service providers in Australia and other key international markets to help drive sales.
Amongst others, Compumedics secured a $200,000 Somfit sale in Europe during the first half of FY25. Management believes this order brings to light the large market opportunity for the technology in this geographic domain.
Building on a strong FY24
The results for the first half of FY25 build on the group’s robust performance in FY24, characterised by record sale orders of $52 million and record revenues of nearly $50 million.
Notably, FY24 marked the company’s return to profitability with operating earnings (EBITDA) of $2.7 million rising from a $2 million loss in FY23, despite ongoing investment in sales resources for the roll out of Somfit in the US.
Positive outlook
Looking ahead, the company believes it is well placed to accelerate growth in the second half of the fiscal year. It expects sales momentum in the US to keep building as new resources to drive growth continue to be integrated into its operations.
For instance, Somfit trials and demonstrations with three independent diagnostics testing facilities in the US are ongoing as part of trio’s ‘home sleep apnea test’ (HST) operations.
According to Compumedics, the HST market in America represents an opportunity valued at between $100 million and $300 million for the company.
For the full FY25, the group expects total sales to surpass $55 million when excluding MEG. It also anticipates operating earnings (EBITDA) to clock in at more than $5 million.
However, EBITDA will be weighted to the second half of the fiscal year due to marketing and development costs being expensed in the first half-year, particularly in the company’s American business.
Compumedics plans to review its guidance for FY25 prior to the release of its final results for the first half of the year in late February.