Azure Healthcare Limited announces 2016 full year results

Melbourne, Australia, August 29 2016  Azure Healthcare Limited (ASX:AZV) attaches its preliminary report for the 12 months ended 30 June 2016.

Azure highlights:

• Consistent with previous guidance, revenue of $32.023 million compared to $34.950 million for the previous corresponding period.
• Gross profit $15.649 million (48.89%) compared to the previous corresponding period of $18.286 million (52.32%) an adverse variance of $2.637 million due to dual facilities in the USA and Australia and increased raw material costs from a higher US dollar.
• Net loss after tax from continuing operations of $3.651 million compared to net profit after tax of $1.082 million in the previous corresponding period.
• EBIT loss of $3.788 million compared to EBIT profit of $0.2 million in the previous corresponding period.
• Negative operating cashflow of $2.159 million with cash at bank of $1.685 million as at 30 June 2016.
• Provision made for $0.93 million of costs relating to Perth Factory and discontinued inventory.
• Investment in Research and Development (R&D) of $2.9 million as compared to $4.5 million in the previous corresponding period.
• While through the first half of FY17 restructuring costs particularly in respect of the Perth factory will continue, the second half of FY17 is expected to return to profitability.

Tacera Pulse:

• Tacera Pulse rollout continues with sites in the US, Canada and Australia.
• Tacera Pulse contracted subscription revenue is now $0.8 million annualised and growing.
• Targeting RTLS and Mobile app integration roll out by 31 December 2016.

Restructuring Update:

• Management has implemented cost saving measures through the period, which will result in annualised savings in excess of $1 million.
• The Perth factory closure is on track to be completed by this calendar year which will realise annualised cost saving of between $1 million to $1.4 million.
• Increased operating expenses arising from restructuring are expected to reduce in FY17 with the closure of the Perth factory.
• R&D expenditure is reducing post the roll out of Tacera Pulse with annualised spend of 8-10% of revenues.
• Continued sufficient working capital available to fund the planned restructuring and R&D initiatives.

For further information please contact:

Mr Clayton Astles
Chief Executive Officer
Telephone AUS: 61 411 531 170
Telephone US: +1 416 565 7457
Email: clayton.astles@austco.ca