Compumedics Limited (ASX:CMP) Signs New 5-Year Contract with Philips Australia
New Contract Announcement
Compumedics Limited (ASX: CMP) has signed a new five-year contract with Philips Australia to supply the Somfit device for pharmacy-based sleep testing. This partnership secures Compumedics’ position as the leading provider of pharmacy-based sleep testing in Australia and is expected to generate around $3 million in Software as a Service (SaaS) revenues through to 2028.
Financial Performance
For the financial year 2024, Compumedics reported a significant increase in SaaS revenue, reaching $4.2 million, compared to $1.7 million in the previous year. In the first half of FY25, the company has already booked $2.9 million in SaaS revenues. These figures underscore the growing demand for Compumedics’ technology and its strategic focus on the USA market and other key international markets.
Market Insights
The Australian pharmacy-based sleep testing segment is the fastest growing in the nation’s sleep diagnostic market. Compumedics’ partnership with Philips enables pharmacy staff to conduct tests efficiently, using the user-friendly Somfit device. As the market evolves, Compumedics is poised to invest further in this area, especially with ongoing Medicare investigations regarding the reimbursement of certain sleep studies.
Future Expectations
In the United States, Somfit sales have reached $1 million (USD 0.7 million) within a year of entering the market. The company is actively progressing trials and demonstrations with three large Independent Diagnostic Testing Facilities (IDTFs) which may drive further growth. The potential market opportunity for home sleep apnea tests in the USA ranges from $150 million to $300 million.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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