Pro Medicus profit jumps but shares drop
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The news: Medical software group Pro Medicus reported a jump in profits for the first half of the financial year, driven by a 36.8% revenue uplift in North America and the closing of four key contracts during the six-month period.
The numbers: Pro Medicus posted a first-half profit of $36.3 million, up 33.3% compared to the prior corresponding period (pcp). Revenue from ordinary activities rose 30.3% from pcp to $74.1 million, while the company reported no debt and cash on hand of $131.5 million. It will pay an interim dividend of 18 cents per share.
The company's shares were down 5.6% in early trading on the ASX.
The context: The Victoria-based company — which provides medical imaging software and services to hospitals, imaging centres and healthcare groups in Australia, North America and Europe — said it won four key contracts worth $200 million during the period, with terms ranging from seven to 10 years.
Earlier this month Pro Medicus’ wholly owned US subsidiary Visage Imaging launched a diagnostic imaging app for Apple Vision Pro, Apple’s spatial computing platform. In comments released today, Pro Medicus CEO Sam Hupert said: "...if Apple's history is anything to go by, this is version 1.0 of this technology so immersive, spatial imaging could evolve substantially in the healthcare space, especially when you consider the human body is a 3D volume".
"We also see a role for spatial imaging coupled with AI as these are highly complementary technologies," he said.
What they said: Commenting on the company's half-year results, Hupert said: "We benefitted from above industry growth in exam volumes across our client base and successfully completed four new implementations all of which will provide a full six months of revenue on the second half".
"Looking ahead, Pro Medicus aims to further build on its presence in North America, Germany and Australia and is actively pursuing a growing number of opportunities across key markets," he added.
The source: ASX announcement
