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Compumedics Ltd On-Track For Increased Sales And Profits

Compumedics Ltd (ASX:CMP) has three next generation growth platforms, each of which emanates from one of the three core businesses, being sleep diagnostics, neurological diagnostics and brain blood flow.

The company has today outlined that it is on-track for increased sales and profits in financial year 2016, with further growth expected in financial year 2017.

The first next generation growth platform emanates from the company's existing sleep diagnostic capability is built around Nexus 360 and Somfit. Both are cloud-based products utilising our existing sleep diagnostic technology.

Nexus 360 is a cloud-based software platform for use by medical professionals in conjunction, initially, with our existing hardware offering.

Somfit is a consumer-targeted device for monitoring quality of sleep in the home. The device and software platform for consumer application are in the final stages of development.

In both cases these two new offerings enable the business to generate recurring revenues, through a per-use or monthly charge.

Financial outline

Compumedics said that full-year sales are expected to be $37 million (11% growth) while EBITDA is expected to be between $4.5-$5.5 million and NPAT $2.8-$3.2 million.

Final full-year results will be subject to audit, and will be released to the Australian Securities Exchange around 25th August 2016.

The indicative results reflect several positive outcomes from the company's continuing process of renewing growth in key international markets, as well as relocating key manufacturing activities to lower-cost economies.

Key milestones in the past twelve months

- A 14% increase in total orders taken for FY16 at $38.4 million compared to $33.8 million;

- Continued outsourcing of manufacturing, with most main product lines transferred;

- New low-cost Grael product line has commenced shipping;

- Strategic discussions commenced in relation to Somfit; and

- Strong commercial progress with key step out technologies including MEG brain imaging and digital health (Somfit consumer sleep project and clinical cloud).

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