SHL TeleMedicine (SWX: SHLTN) of Tel Aviv today reported that 2002 revenue jumped 193% after it acquired US healthcare services provider Raytel Medical Corporation in April.
Revenue reached $89.8 million in 2002, compared with $30.6 million in 2001, as revenue grew both organically and through acquisitions, the company said.
The Swiss listed company, which provides monitoring systems for patient care, said profit declined to $1.4 million in 2002 compared with profit of $12.1 million in 2001.
SHL said the decline in profitability was mainly caused by the increase in the company’s share in losses and provisions for a loan to Philips Heartcare Telemedicine Services, a joint venture with Philips Medical Systems. In 2002, SHL made a provision of $7.4 million for a loan investment for the joint venture, compared with a $2.6 million provision in 2001.
Financial gains in 2002 fell to $1.8 million, compared with $8.4 million in 2001. The decline in financial income followed the company’s use of its cash resources for the Raytel acquisition, and lower interest rates in the market. SHL’s balance sheet at year-end showed cash and short-term deposits of $51.8 million.
SHL reported that the Raytel acquisition had expanded its international client base considerably, to 250,000 customers and subscribers.
"Backed by strong distribution channels among leading pacemaker and cardiac technology manufacturers as well as 10,000 cardiologists and physicians, Raytel has added more than 170,000 patients to SHL’s established client base,” the company stated.
For 2003, SHL said it intended to increase its investments in R&D, with several pipeline products due for launch during the next two years including a new blood measurement device and a technologically advanced electrocardiogram monitoring device.
The company forecast revenue growth of between 20%-30% in 2003, with EBITDA-margins of 18%-22% and EBIT-margins of 12%-15%.
SHL shares were down 8.3% at 5.50 francs on Wednesday morning, after closing at 6 francs on Tuesday.
Published by Globes [online] - www.globes.co.il - on 5 March, 2003