AtCor swings to profit

AtCor Medical (ASX:ACG) has reported its second ever half-year profit for 1H13 thanks to revenue growth and cost-cutting.

AtCor Medical (ASX:ACG) swung to a 1H13 profit of $2.3 million thanks to strong sales of its SphygmoCor blood pressure monitoring device.

Sales revenue grew 43% year-on-year to $5.4 million, partly as a result of some major contract wins.

The launch of SphygmoCor XCEL, an upgraded version of AtCor’s central aortic blood pressure monitoring test, helped revenue grow 17% in Australia and New Zealand. Sales in the US meanwhile increased 54%.

But Asian sales declined - with AtCor blaming the lead time needed to secure SphygmoCor XCEL registration in key markets such as China and Japan - and European sales were flat.

Operating expenses fell 21% to $3.5 million. AtCor’s cash position at the end of the half-year improved to $2.1 million, from a positive cash flow.

Announcing its results, AtCor said it remained focused on growing its pharmaceutical clinical trial services business and pursuing partnership opportunities for SphygmoCor as a platform.

The half-year marked AtCor’s second ever six-month profit. AtCor reported a maiden profit of $180,000 in 1H09, but subsequently fell back into the red. For FY12, the company reported a net loss of $1.9 million, from 14% lower revenue of $6.4 million.

The 1H13 results are in line with unaudited figures provided in January.

AtCor (ASX:ACG) shares were trading unchanged at around 10c as of around 1 pm on Friday, up from 7.8c on Wednesday prior to the announcement.