Ultrasound probe disinfection company Nanosonics Limited (ASX: NAN) released its half year financial report to investors on Friday, showing a 90% decrease in profit.
Nanosonics describes itself as setting a new standard in ultrasound probe disinfection around the world with its trophon device.
Here are some of the highlights compared to last year:
- Sales down 17% to $30 million
- Gross profit down 15% to $22.3 million
- Operating income before tax down 64% to $3.7 million
- Profit down 90% to $2.2 million
Nanosonics CEO Michael Kavanagh said “In North America the strong adoption of trophon was maintained with a further 1,700 new units adopted in the half, growing the overall North American installed base to approximately 14,100 units.”
The company said that the reduction in sales was expected, mainly due to the GE Healthcare reduction of $1.8 million.
The company had an income tax benefit last year of $11.7 million, whereas this year it was a $1.5 million cost to Nanosonics.
Nanosonics increased its UK sales and service team as well as appointing a regional manager for Europe and the Middle East region. This is hoped to support the long-term growth strategy.
In the UK it increased its managed equipment service ‘MES’ installed base units by 86% in the half. MES is where the equipment is placed in hospitals for a contracted period and the facility pays for an all-inclusive price for consumables in return for the use and maintenance of the capital equipment.
The company said that the fundamentals for adoption across Europe also strengthened with the release of a number of new regulations including guidelines from the British Medical Ultrasound Society as well as the European Society of Radiology.
Mr Kavanagh said that in the second half of FY18 the company expects continued growth in North America similar to the first half and new unit growth in the UK of 75% to 100%.
Beyond FY18 Nanosonics expects strong growth of trophon in all installed core markets, expansion into new markets, a new GE Healthcare agreement and the introduction of new products including the second generation of trophon.
The Nanosonics share price has fallen 12.3% according to Google Finance.
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