Azure Healthcare swings to profit for FY12

Azure Healthcare (ASX:AZV), shed of its unprofitable audio visual business, swung to a $744,000 net profit for FY12.

The company, which had reported a net loss of just over $11 million for FY11, had spent the past financial year concentrating on turnaround efforts including cost cutting and improved operational efficiency.

Azure Healthcare was until January known as TSV Holdings, which had operated audio visual contracting business TSV Australia. But this unprofitable subsidiary was placed in administration in June 2011, and into liquidation in August.

Left with its healthcare-focused Austco Communications Systems subsidiary, TSV Holdings changed its name to Azure Healthcare in January. This also involved switching ASX codes from TSH.

Austco's revenue grew 8.3% in FY12 to $18.2 million, in a result attributed to increased demand for the newest products in Austco's Tacera line of IP-based nurse call and notification systems.

During the period, Azure Healthcare completed a $2.1 million rights issue, with some 65% of its shareholders taking the company up on the offer. The 35% shortfall was taken in by investors including Azure's CEO Robert Gray and COO Nathan Bazza.

Going forward, Azure Healthcare said management will remain focused on implementing initiatives to improve the business, including an emphasis on outsourcing, as well as streamlining and improving operational efficiencies.

The company will also double its R&D investment in software integration efforts, in a bid to capture more high-margin clinical middleware business.

Azure Healthcare (ASX:AZV) shares were trading unchanged at $0.035 as of 2:30pm on Monday.