SHL Telemedicine Ltd. (SWX: SHLTN) today published its financial report for the fourth quarter and full year of 2008. The remote medical monitoring company moved into the black and expects further improvement in its results in 2009, despite the recession.
For the sake of comparison, SHL used 2007 figures which exclude the results of its US operations, Raytel Cardiac Services Ltd., which were sold in late 2007 to Royal Philips Electronics NV (AEX: PHG).
SHL posted $11.3 million revenue for the fourth quarter, up 40% on the corresponding quarter of 2007. Net profit was $600,000, compared with a net loss of $2.3 million for the corresponding quarter. The company's cash flow rose sharply to $2.6 million.
For the year as a whole posted $44.6 million revenue, up 62% from the $27.5 million revenue in 2007. The company's German operation accounted for $15.8 million revenue, 77% more than the $8.9 million the year before.
GAAP-based net profit was $2.2 million in 2008, down from $27.6 million in 2007, a figure that includes a $39.3 million capital gain on the sale of Raytel. Excluding Raytel, SHL's posted a net loss of $8 million in 2008.
SHL had $23.5 million in cash at the end of 2008, after repaying all outstanding debt, amounting to $52.3 million, during the year and buying back $1.1 million worth of shares.
SHL notes that the demand for telemedicine services remained strong in the first quarter of 2009. Assuming constant currency exchange rates, the company expects to report a net profit of $3.5-5 million on $51-53 million revenue in 2009.
SHL co-CEO Erez Alroy said, "Germany was the growth driver it promised to be a year ago, improving results on all levels. Our business model works. We feel confident that SHL will remain largely unaffected by the economic downturn, and continue to show further consistent growth."
SHL's share rose 1.8% in early trading on the Swiss Exchange to CHF 5.80.
Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2009
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