SOM Finishes Year with Record Quarter
SomnoMed finishes the year with record quarter 26th July 2010, Sydney:
SomnoMed Limited (SOM) SomnoMed recorded the period of the highest unit sales and revenues in the final quarter of the 2009/10 fiscal year, with sales of 5,531 units generating revenues of $3.16 million (unaudited) for the three months to the end of June. This has brought the total number of units sold during the 2009/10 year to 19,543, representing an increase of 59.5% over the 12,254 units sold in the 2008/09 year. Revenue grew by 42.4% compared to the same quarter in the previous year, affected by a stronger Australian Dollar. Volume growth in this year’s June quarter was up by 51%, compared to the previous year.
North American sales represented 66.5% of global unit sales. Europe is the fastest growing region, selling 1,109 units in the three months to the end of June, up by over 100% compared to the same period in the previous year and now, for the first time, exceeding 20% of total global sales. Asia- Pacific represented 13.5% of global sales, dominated by revenues generated in Australia, whilst Japan and South East Asia are developing slowly in line with their local treatment protocol, still dominated by surgery or being held back by reimbursement issues. Ralf Barschow, SomnoMed’s CEO, said, “ We are very pleased with the result in the last quarter, which allowed us to finish the year close to 20,000 units, well up from our original target for the 2009/10 year.
Europe shows excellent growth prospects in a number of countries now recommending oral appliance treatment as first line treatment for sleep disordered breathing and offering partial or full reimbursement to patients.” “Our growth in the North American market was 51% higher than in the same quarter last year. This brings the total number of units sold in 2009/10 in the US and Canada to over 13,300, compared to 8,000 in the previous year. Based on our research, we believe SomnoMed has become the market leader in quality, custom made oral appliances in the US dental market, with a likely share of 25 – 30%.” “There are now a number of very important strategic initiatives underway in our most important market, which we believe will develop and strengthen SomnoMed’s position in the medical market and position our SomnoDent® device as the principal, more patient friendly and therefore more compliant treatment alternative for sleep disordered breathing conditions, ” said Mr. Barschow.
SomnoMed generated a total of $869,000 in net operating cash during the June quarter and received a further $436,000 from the issue of shares, as a result of conversion of options. This allowed SomnoMed to finish the year with a cash position of $4.3 million, compared to $3.1 million at the end of the previous quarter. “The good operating cash flow in the June quarter allowed us to finish the year with $4.3 million in the bank, up by almost $300,000 compared to end of June 2009. This is an excellent result, bearing in mind that we invested over $570,000 during the year in building and expanding our production capacity,” said Mr. Barschow.
For more information contact: Mr. Ralf Barschow, CEO, SomnoMed Limited +61 2 9467 0420
How the SomnoDent® MAS works The medical term for your lower jaw is ‘mandible’ and an oral appliance worn over the teeth is a ‘splint’, hence the name SomnoDent® Mandibular Advancement Splint, or SomnoDent®MAS. The SomnoDent®MAS consists of two acrylic plates fitted over the upper and low teeth. A patented fin coupling mechanism on the lower arch accurately positions the lower jaw (mandible) a little forward of its natural position. This positioning tightens the soft tissue at the back of the throat to stop it from collapsing – the cause of snoring (partial collapse) and sleep apnoea (full collapse).
SomnoDent® MAS allows the normal opening and closing of the mouth, allowing the user to yawn, speak and drink. The device will last 5 years and comes with a warranty. The SomnoDent® MAS is provided to patients through an integrated clinical protocol, involving dentists, primary care practitioners and sleep physicians. This pathway ensures that all patients are appropriately diagnosed and that only suitable patients are fitted with the device.
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