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clock Created with Sketch. 05/12/17
11:43
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Key comments in the second half of the commentary.
...Licensee volumes, which rose unexpectedly last financial year and against the trend of the previous years, as a result of the move of some practitioners away from working with SomnoMed directly and procuring their SomnoDent® devices from our licensees, fell by two-thirds during the quarter. October orders and completed sales indicate that direct sales in the US will grow well in the second quarter, whereas sales through licensees will return to their previous lower levels and become less and less important compared to last financial year. Australia and New Zealand sales rebounded in the quarter with much stronger results in September, where a growth of 7% was posted and it is believed that this positive growth should be maintained for the remainder of the year. Global CEO, Mr Derek Smith commented, “We are pleased that our traditionally softest quarter of the year is behind us. All focus is now on the next quarter and we are excited about the rest of the financial year where we expect Europe to accelerate in its revenue growth, North America to continue to positively grow direct sales, APAC to remain on the current trajectory and RSS to generate significant increases in revenues. Given the growth of RSS enquiries experienced over recent months, the opening of three additional RSS centres in the first quarter of the new financial year and the significance of RSS on the company’s overall results, we will comment further on the full year’s expected results once the first half of the financial year is completed.” SomnoMed held $9.7m in cash at 30 September 2017. The operational cash flow for quarter one was affected by investment of $2.4 million in RSS start-up expenses and opening costs of three new RSS centres.
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