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Highlights
- SomnoMed has reported a 19% revenue increase during Q1 FY23.
- The company’s North American operations witnessed a 44% increase in revenue.
- Meanwhile, SomnoMed’s cash flow decreased by AU$1.9 million.
On 25 October 2022, Australia-based oral sleep apnea device supplier SomnoMed Limited (ASX:SOM) published its quarterly activity report for Q1 FY23 on the ASX. According to the report, SomnoMed generated revenue of AU$18.5 million, which is 19% higher than the previous corresponding period (PCP), while its FY23 guidance remains unchanged.
The market leader in oral appliance treatment options for obstructive sleep apnoea (OSA) and sleep-related respiratory problems had a 44% increase in revenue in North America during the first quarter of FY23 compared with the PCP. With a revenue of AU$7.3 million, the company claims that its best-in-class products and services are what drove the great sales momentum in North America.
Even though the company showed a revenue increase in FY23, cash flow from operations is AU$1.9 million down, which excludes one-off payments related to annual license fees and bonuses. SomnoMed has AU$12 million cash in hand as of 30 September 2022, along with an AU$6 million loan funding arrangement planned for the end of Q2 FY23.
Management commentary
Talking about Q1 FY23, Neil Verdal-Austin, Managing Director, SomnoMed, said:
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 25 October 2022
Key financial and operational details
- SomnoMed states that the increased demand for its COATTM, AVANTTM, and Herbst Advance EliteTM technologies and the company’s sales and business development investments are the reason for a successful Q1 FY23.
- SomnoMed’s total number of patients is now 740,000.
- To promote awareness and education about COATTM for the treatment of OSA, the company organised the second annual SOM summit and brought the top sleep medicine practitioners from North America and around the world together.
- As COVID-19's effects on the medical industry and the larger dental community continued to lessen, business circumstances improved across SomnoMed's core areas of North America, Europe, and the Asia Pacific.
- The company plans to expand the addressable market further by offering an alternative to the conventional default CPAP recommendations made by most sleep physicians.
Image Source: Company announcement, as of 25 October 2022
