Pro Medicus Signs Contract Extension With German Government Hospital Network

  • Dec 10, 2018 AEDT
  • Team Kalkine
Pro Medicus Signs Contract Extension With German Government Hospital Network

As per latest announcement on ASX, Pro Medicus Limited (ASX: PME) has signed a contract extension with a German Government Hospital network, through its wholly owned European subsidiary Visage Imaging GmbH. The project involves Visage providing software and services with revenue of more than a$3 million, excluding ongoing service contracts.

Prod Medicus is an Australian healthcare technology company with over 30-years’ experience and expertise in providing Picture Archiving and Communication Systems (PACS), effective visualization solutions and radiology information systems (RIS) to hospitals and health care groups across the territories. Its subsidiary Visage Imaging GmbH is a global provider of visualization and imaging solutions to imaging organizations.

The contract extension includes additional licenses for the existing site as well as Visage providing next-generation imaging infrastructure namely Visage 7 and Visage Open Archive at two other hospitals within the German hospital network. Visage will be offering its diagnostic image access to sites in northern and southern Germany. The move is bound to expand Visage’s presence in the German medical landscape with the plan target to go live by this year-end.

Dr. Malte Westerhoff, General Manager of Visage Imaging GmbH and Visage Chief Technology Officer said, “Existing customers expanding their use of our offering is the best validation of the strength of our technology and the quality of our customer service. This contract extension follows on from the success we have had at the first site we implemented for this government department.”

The imaging IT provider reported positive and robust annual financial results for the period ended 30 June 2018 with an after-tax profit of $12.74 million. This increase of 36.7% is attributable to a significant increase in the performance of the North American and European operations and unrealized foreign currency gains.

Revenue margins increased by 13.9% to $36.02 million. Also, underlying profit demonstrated an increase of 27.4% from the previous year. The company’s cash reserves were $25.24 million marking an annual increase of $2.46 million. The pay-out 50% increase in dividend (6.0c fully franked) suggest strong earnings of shareholders.

The company has signed three major contracts in last one year- an A$18 million contract with North America, a seven-year contract with Yale New Haven Health and an A$15 million, seven-year contract with Mercy Health.

Company’s Shares opened at $10.410 at ASX earlier today and are currently trading at slightly lower levels. However, the stock reported impressive performance and witnessed a drastic rise of around 22% with $8.900 price at 2018 beginning.

With a market capitalization of $1.1 billion and an annual dividend yield of 0.57%, the company’s stock holds a positive outlook with progressive growth of pipeline products, entry into difficult to penetrate German hospital market, immense future opportunities and optimistic sales expansion in the European market. It is worth keeping a close watch over the future projects and stock performance of image service provider.


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