Highlights for half-year ended 31 December 2014
- Revenue from ordinary activities up 9.5% to $17.57 million;
- Increased investment in R&D and expanded production in the United States;
- Operating expenses up 21% to $16.73 million;
- Net Profit After Tax down 58.8% to $0.894 million (reflecting higher operating expenses);
- Positive Operating cash flow of $1.615 million;
- Cash at bank of $3.1 million, up 93.3%;
- Net Tangible Assets of 6.27 cents per share, up 31.7%.
In announcing the result, Azure Healthcare’s Executive Chairman, Robert Grey, said:
“The first-half result represents another period of revenue growth for Azure following further significant project wins in Australia, the United States and other key markets. In order to position the business for further strong growth over time, the Company increased its investment on Research & Development and expanded its production capabilities in the United States. The US is a huge market for Azure, and pleasingly the Company is continuing to increase its product footprint as more and more healthcare facilities recognise our world-leading capabilities in clinical workflow software and healthcare solutions.”
“The increased investment in R&D and on our Dallas, Texas, manufacturing facility resulted in higher operating expenses over the period, leading to an overall reduction in group earnings from the previous corresponding period, however the Azure Board remains committed to the Company’s long-term global growth strategy, which is reflected in the latest higher sales numbers.”
“Furthermore, the business is increasing its software and maintenance sales and consequently is experiencing higher direct gross margins from its product offerings.” Group operating cash increased 93.3% in the half-year, to $3.1 million. Mr Grey said that while Azure expects higher operating costs will continue for the foreseeable future, the Company’s ongoing investments into R&D and its manufacturing would bolster revenue growth.”
Azure invested $1.874 million in R&D in the period compared to $1.188 million in the previous corresponding period, whilst new additional expenditure in production staffing for the new US manufacturing facility was $0.546. As a conservative approach the Company continues to expense these costs rather than capitalise them.
“The Azure Group now has its products installed in more than 8,500 sites globally,” Mr Grey said. “This footprint of installed nurse call systems is one of the largest in the world and enables us to leverage off our existing relationships and create further opportunities emerging from the rapid increase in clinical workflow requirements in the healthcare sector.”
“Some of the opportunities to integrate our systems and technologies include Patient Electronic Records, Real-Time Patient Telemetry, Admissions, Discharge and Transfer software, Real Time Location Services, Patient Flow, Touch Tablets, Smart and Wireless telephony.”
“Azure is continuing to make good progress across its operations, and we expect this will translate into higher returns for shareholders over time.”
About Azure Healthcare Limited (ASX:AZV)
Azure Healthcare Limited is an international provider of healthcare communication and clinical workflow management solutions. The company is headquartered in Australia, has subsidiaries in six countries and supports more than 8,500 healthcare facilities through our global reseller network which includes growing markets in health, aged care and remand care. Azure Healthcare services markets including Australia, New Zealand, Canada, UK, USA, Asia and the Middle East. For further information please refer to the Company’s website www.azurehealthcare.com.au
For further information please contact:
Mr Robert Grey
Chairman & Chief Executive Officer
Telephone: +614 1135 1938
Email: robert.grey@azurehealthcare.com.au
Mr Jason D’Arcy
Company Secretary
Telephone: +614 1767 7732
Email: jason.darcy@azurehealthcare.com.au
