Compumedics expects return to black for 1H14

Compumedics (ASX:CMP) expects to be able to return to profitability in 1H14 as it sorts through its order backlog and ships out new orders.

A shortage of working capital during most of FY13 lead to a nearly $10 million order backlog. As a result, the company revealed, in a market update, that it expects a loss for the financial year - albeit one significantly lower than the $2.8 million loss reported in FY12.

But, in June, Compumedics lined up funding worth $500,000 to help it process and ship its substantial backlog.

The company expects to be able ship the majority of its remaining $7 million in sales orders as well as new orders received during the first half of FY14, which will allow it to return to profitability.

Despite the working capital restraints, the value of shipments in FY13 totalled $27 million - close to the $27.9 million shipped in FY12.

Compumedics also revealed it has secured a US$300,000 order to supply its Neuvo Long-Term EEG monitoring (LTEM) system to a customer in Qatar.

Compumedics chairman and CEO Dr David Burton said the win in Qatar represents a new opportunity for expansion, following the establishment of footholds for the company’s products in the Australian, US and German medical devices markets.

“We will continue to build on this opportunity in Qatar and further tap the many opportunities available in Europe,” he said.

Compumedics shares were trading 7.41% higher at $0.087 as of around 1 pm on Tuesday.