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Continuous Open Airway Therapy company Limited () expects to set a new record for sales of its obstructive sleep apnoea devices in the current quarter.
This follows the growth of direct sales in the U.S. and a solid acceptance of its new products. Good growth is also being recorded in European markets especially in new and emerging markets.
“Half way through Q4 we are pleased to report that we are confident that the last quarter of the financial year 2014/15 will set a new historic record for sales in a quarter” executive chairman Dr. Peter Neustadt said.
“We expect to sell over 14000 SomnoDent® units worldwide about 20% above the same quarter in the previous year and over 2500 units more than the sales achieved in Q3 of this financial year.”
Total volume in the financial year ending 30th June 2015 is expected to exceed 50000 units despite lower Q3 sales while revenue will grow by over 25% to $32.5 million.
EBITDA for FY2015 is expected to be in line with previous year’s earnings (around $1 million versus previous guidance).
Looking Ahead
has developed a five year plan to 2020 and budgets for 2015/16 are currently being finalised projecting a further increase in ’s growth in the next financial year and beyond.
Volumes in the year ahead are expected to grow by 20-25% over 2014/15 consistent with the anticipated long term view of the growing demand for COAT™ in its markets.
Guidance for 2015/16 will be given once final results for Q4 are at hand.
The company will continue to build its global market leadership position offering the best most medically proven and effective oral appliance therapy devices.
This will involve a continuing strengthening of its medical and dental marketing and sales resources around the world in particular in the U.S.
Its commitment to capitalise on growing revenues to produce growing earnings in future years remains though achieving volume and revenue growth in the short term are the priority tasks.
Recent Activities
The compliance control system is now successfully operating in selected practices in six countries with first compliance measurements indicating consistent all night-every night use on a 90%+ compliance basis.
Once FDA 510K approval for the compliance system is received - expected before the end of the financial year – a roll out of the compliance control system in the U.S. is scheduled to commence by middle of this year.
It is anticipated this will further strengthen the acceptance of COAT by U.S. medical specialists.
The phasing in of digital processes into our production has successfully completed test and calibration stages.
Since April the Australian hub has transmitted electronic data exclusively to our factory and physical shipments of impressions bite records and plaster models have been eliminated.
The results of the transition to digital processes are very convincing producing savings in international freight costs a shortening of turnaround times and an even higher level of precision in our finished products.
The roll out of digital processes to the company’s 14 service hubs around the world is planned to be completed by the end of 2015 and is expected to have a positive impact on gross margin and profits in 2015/16.
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