Ellex Medical Lasers Limited reported revenue results for the six months ended December 31, 2016. For the period, the company reported total revenue of AUD 34.3 million compared to AUD 34.8 million a year ago. Revenue for the half year period was impacted by positive impact from AUD 1 million increase (37% in constant currency) in revenue from the Ellex iTrack minimally invasive glaucoma surgery (MIGS) device. The increase was driven by sales in the USA, China and Europe. The appointment late in the period of new USA sales representatives, the impact of the doubling of insurance reimbursement effective January 1, 2017 in the USA and the continued roll out in China is expected to drive an acceleration of sales in the second half. Strong sales late in the period in the USA for new Tango Reflex following release in November. Tango Reflex allows doctors to treat glaucoma and vitreous floaters. This lifted glaucoma treatment revenues. Production limitations during the half year to December 31, 2016 meant that a sales order backlog was on hand for this product as of December 31, 2016.

The estimated EBITDA of AUD 3.1 million for the half year to December 31, 2016 (AUD 3.5 million) was reduced compared with the prior corresponding period by planned continued investment in iTrack growth initiatives including appointment of a senior sales manager and additional sales representatives (AUD 0.4 million).

For the second half of 2017, total revenue is expected to be substantially higher that the first half of 2017 and the PCP, which would result in total revenue for 2017 being materially higher than 2016. EBITDA in the second half of 2017 will leverage off higher sales. However, due to the planned investments in the iTrack business, growth of EBITDA relative to first half 2017 and the PCP is expected to be modest.