Daily Roundup

EML.ASX PME.ASX M7T.ASX EZL.ASX CMP.ASX

Record H1 FY25 Sales Orders for Compumedics

Compumedics, a global medical device company, is kicking off the new year on a high note. The company has announced that it will book record sales orders of more than $31 million for the first half of fiscal year 2025, with the final number to be confirmed in early January.

The standout performer has been the company's U.S. operations, where sales orders have surged more than 200% compared to the same period last year. This growth has been driven primarily by the sleep, Somfit home sleep testing, and brain research businesses.

The Somfit home sleep apnea testing product has been a particular bright spot, with the quoted business in the U.S. reaching $6.3 million (USD4.2 million). Compumedics has secured an initial sale to a large global CPAP player and has found success in new trials at large Independent Diagnostic Testing Facilities (IDTF's) in the U.S. The company estimates the addressable home sleep apnea test market in the U.S. to be between 3 million and 4 million tests per year, representing a significant market opportunity of $150 million (USD100 million) to $300 million (USD200 million) for Compumedics.

Looking ahead, the company has provided FY25 guidance, including sales of more than $55 million (excluding its MEG business) and EBITDA above $5 million. While EBITDA is expected to be weighted towards the second half due to marketing and development costs being expensed in the first half, Compumedics is well-positioned to accelerate growth in the U.S. over the remainder of the fiscal year, with new sales resources coming on board and the company progressing trials and demonstrations with 3 large IDTF's in the U.S.

EML Payments Announces Leadership Changes

EML Payments has announced some significant changes to its leadership team. The company has elected to discontinue the employment agreement of Managing Director and CEO Ron Hynes, effective 21 December 2024, as the Board has determined that alternate leadership is required to execute the company's EML 2.0 strategy.

Ron will receive six months' notice, but he will not receive any equity grants, as he will not be in employment on the relevant vesting dates. The Board and leadership team remain committed to the EML 2.0 strategy, which was communicated to shareholders and the investment community at the company's 2024 Annual General Meeting on 26 November 2024.

In the wake of Ron's departure, the Board has appointed current Independent Non-Executive Chair, Anthony Hynes, as the new Executive Chair, effective 23 December 2024. Anthony brings a wealth of experience in the operation of successful global payments businesses and has developed a deep understanding of the EML business over the past six months since his appointment to the Board on 30 June 2024.

Additionally, the Board has appointed Independent Non-Executive Director and Chair of the Audit and Risk Committee, Ken Poutakidis, as Deputy Chair, also effective 23 December 2024. Ken is an experienced ASX Director with a deep understanding of equity capital markets and financial services.

The company has affirmed its guidance for FY25 underlying EBITDA in the range of A$54-60 million.

PME Signs A$30M, 7-Year Contract with Duly Health and Care

Pro Medicus Limited (PME), a leading healthcare informatics company, has announced a significant new contract win. The company's wholly-owned U.S. subsidiary, Visage Imaging, Inc., has signed a A$30 million, 7-year contract with Duly Health and Care (DHC), the largest independent, multi-specialty physician-directed medical group in the Midwest U.S.

Under the contract, Visage 7, including the Visage 7 Open Archive and Visage 7 Workflow modules, will be implemented throughout DHC's healthcare network, replacing their legacy PACS archive and vendor neutral archive. The cloud-engineered Visage 7 platform will provide a unified diagnostic imaging solution for DHC, which includes DuPage Medical Group, Quincy Medical Group, and The South Bend Clinic, supporting over 40 radiologists, 1,000 physicians, and 150 outpatient clinics.

The implementation is scheduled to commence immediately and is targeted for go-live in Q2 of the 2025 calendar year, leveraging Visage's proven cloud-based deployment process.

PME notes that its pipeline remains strong and spans all market segments, including academic medical centers, IDNs, and the private/teleradiology market, with the trend of clients opting for the 'full stack' Visage 7 solution continuing.

Mach7 Signs A$4.6M in New Contracts

Mach7 Technologies has announced a flurry of new contract wins, with a combined Total Contract Value of A$4.6 million.

The company has signed capital license agreements with four hospitals associated with Adventist Health, a non-profit integrated health system serving more than 80 communities on the West Coast of the U.S. and Hawaii. These 5-year agreements have a combined Total Contract Value of A$2.5 million, with Mach7 providing a full PACS solution, including its eUnity Viewer and Vendor Neutral Archive (VNA).

Mach7 has also received an additional sales order for the Blackford AI platform for the Veterans Health Administration (VHA) National Teleradiology Program (NTP) Phase I NextGen PACS program. This subscription license has a potential Total Contract Value of A$2.1 million based on a fee per study over a three-year term.

These new agreements are expected to add a combined A$0.8 million to Mach7's Contracted Annual Recurring Revenue (CARR) at 31 December 2024.

CEO Mike Lampron stated that these contract wins demonstrate Mach7's strengths in complex reading environments and the merits of its diverse product offering, with clients finding value in its components individually or as a tech stack.

Mach7 has reaffirmed its FY25 guidance for CARR and revenue growth of 15-25% and for opex growth to be less than revenue growth.

EUROZ Hartleys Group Ltd Extends On-Market Buy-Back

EUROZ Hartleys Group Ltd has announced an extension to its on-market buy-back program. The company has extended the buy-back period for a further 12 months, from 6 January 2025 to 5 January 2026. The maximum number of shares to be bought back remains at 16,000,000.

There are no other changes to the buy-back proposals, and the company remains in compliance with all Corporations Act requirements relevant to the buy-back.