Cochlear chalks up record revenues

Cochlear (ASX:COH), the world's top maker of hearing implants, has turned around a poor performance from last year to record a net profit of AUD$54.52 million, up 48 per cent from last year.

Total revenue for the year ending June 30 2005 was $348.5 million, an increase of 22 per cent compared to last years revenues of $285.8 million.

"Momentum is the story for 2005, with a better second-half performance driven by the June quarter sales of Nucleus Freedom and including the momentum of the purchase of Entific Medical Systems. It showed Cochlear is back, we are serious and we are out there," said Cochlear CEO Chris Roberts. The release of Cochlear's next generation Nucleus Freedom cochlear implant system in the fourth quarter helped raise its unit sales to record levels of 10,802 units compared to 2004 sales of 9306, an increase of 16 per cent for the full year and 20 per cent for the second half.

Roberts noted Cochlear's March purchase of Entific Medical Systems for $195 million as a highlight. The Swedish-based company makes Baha implants which allow hearing through bone conduction and complement the cochlear implants rather than compete with them. "We have repositioned the company really well and that is something -- [Baha] are growing faster than Cochlear implants." said Roberts.

Cochlear anticipates core earnings growth of at least 20 per cent in the 2006 financial year.

"We are not short of ideas on how to grow the business," said Roberts, who identified the five key areas for growth as, increasing awareness, patient access, expanding the product portfolio, expanding indications and geographic expansion.

Roberts also believes that bi-lateral implants will play an important role in the long-term future of Cochlear. "In 20 or 30 years everyone will get two implants, just like they do hearing aids."