Ellex Medical Lasers Limited provided earnings guidance for the six months ended 31 December 2015. For the period, the company expects to report a profit before tax of approximately AUD 1.8 million. The result will be a material increase in the profit before tax of AUD 1.3 million reported for the six months ended 31 December 2014.

Group revenue for the six months ended 31 December 2015 is expected to be approximately AUD 34.8 million, a AUD 4.1 million (13%) increase compared to the prior corresponding period. The increase in revenue has several components, namely: positive impact of organic growth in sales of Ellex-branded product in USA, Europe and Japan of 11% (AUD 3.4 million); positive impact of lower Australian dollar against USD, Euro and YEN 13% (AUD 4.1 million); and Discontinuation of contract manufacturing and lower margin third party product sales along with reduction in other third party product sales that has reduced revenue by 11% (AUD 3.4 million). The increase of 38% in the estimated profit before tax has been driven by increasing brand equity of the latest generation of Ellex-branded products.

The estimated profit before tax of AUD 1.8 million has been negatively impacted by the following new operating expenses, that will benefit the second half of fiscal year 2016 and beyond: investment in iTrack growth initiatives and start up of a dedicated sales force in USA (approximately AUD 0.3 million); and investment in additional regulatory resources to support the rollout of Integre Pro Scan™ in the USA (FDA approval August 2015) and Japan (Japan FDA approval achieved December 2015) and to renew registrations for certain products in China (approximately AUD 0.3 million).