Bionic-ear implant company Cochlear has reported record first-half earnings of $75.25 million for the December half and lifted dividend to 95c a share from the previous 80 cents a share.
That was after revenue for the first half of 2009-10 fell 2% to $347.6 million, thanks to the strength of the Australian dollar during the period.
Sales, excluding foreign exchange contracts, were down 3% to $336.9 million.
The shares perked up, rising more than 3% in early dealings before finishing up 3.5%, or $2.16, at $63.55.
The company said in its release to the ASX that sales of individual cochlear implant units rose 7% to 9811 although installed base sales (sound processor upgrades) actually fell 29% as the focus of its new next generation Nucleus 5 technology was on complete system sales, not upgrades.
“This financial result was helped by the successful launch of the new Cochlear Baha BP100 sound processor and the next generation cochlear implant system, Cochlear Nucleus 5.
"Customer feedback from the new systems is extremely positive and improved clinical performance demonstrated. Importantly, these launches provide momentum going into the second half,” said Cochlear CEO Dr Chris Roberts.
“With the launch of the new products and financial discipline around operating expenses, operating margins expanded, with EBIT of $107.3 million being 31% of revenue compared to 28% for H1 F09, “Mr Roberts said.
Late last year Cochlear said recent US approval for its Nucleus 5 device, after approval in Europe, had resulted in 1000 devices being fitted in the northern hemisphere.
It expected more as the US and Europe ended summer holidays.
Mr Roberts said that "Full year NPAT is forecast to be at least 15% ahead of last year reflecting continuing momentum from the successful new product launches."
Profits from the launch of new implant and sound processor technologies would be weighted towards the current half year period.
Sales of its Baha implant technology was $46.4 million for the first half, up 10% in constant currency terms and 1% in reported currency.
