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first half results

  1. Gradipore Releases First Half Results
    25 Feb 2003


    Gradipore Limited released today its financial results for the six months ending 31 December 2002. During the period the Company recorded a 26% increase in sales to $2.45 million from $1.95 million recorded in the prior year. A net loss for the six months of $7.9 million compares with $8.1 million for the previous corresponding period.

    In announcing the results today, Gradipore's CEO, Robert Lieb, indicated that while sales growth was strong, the financial performance for the half was below internal budget forecasts.

    "The results are mixed - encouraging in some respects and disappointing in others. In the first half, we achieved a 26% increase in sales over last year, but this lagged our budget targets and resulted in a loss close to last year's levels. Revenue in the second quarter was somewhat lower than anticipated primarily due to timing issues in all three Business Units.”

    “Our key short term commitment remains to drive revenue growth while holding expenditure rates down and so reduce the operating deficit. In the second half, we expect to see strong and continuing sales growth; expenditure levels will fall following the staff reductions announced in January and the sharper focus on key business opportunities," Mr Lieb said.

    Summary of Financial Results for 6 Months Ended 31 December 2002

    6 months to

    6 months to
    6 months to


    31.12.02

    30.06.02
    31.12.01


    $’000

    $’000
    $’000







    Sales
    2,449

    1,392
    1,947

    R&D Grant
    -

    203
    541

    Operating revenue
    2,449

    1,595
    2,488

    Operating expenses
    (10,975)
    *
    (12,776)
    (10,799)

    Operating loss
    (8,526)

    (11,181)
    (8,311)

    Net interest earned
    624

    769
    216

    Net loss
    (7,902)

    (10,412)
    (8,095)


    * Includes $510,000 in redundancy and retirement expense at Board and senior management levels

    Reviewing Business Unit performance:

    In our Life Science Business Unit, the launch of Gradipore's new and complete range of electrophoresis gels, originally scheduled for the second quarter, was delayed by approximately 8 weeks due to necessary steps to assure product quality. The complete range is now on the market, the products are being well received by customers and sales are now responding. We are confident that second half performance will show sharp improvement. The BF400 Gradiflow separation instrument for research applications moved from the beta testing phase to marketing launch in January 2003. This is an important development and will contribute to revenue growth in the current half.

    The Diagnostics Business Unit had experienced a slow second quarter sales due to delays in receiving several expected large orders. This situation has resolved itself in the current quarter, with record sales achieved in January. As a result, sales in this Business Unit are now tracking ahead of budget.

    The Commercial Separations Business Unit forecasted several agreements to be signed and partially billed in the first half. Delayed signings, often the result of due diligence by both parties, reduced the revenue contribution from this business. This situation will improve in the second half - as reflected in the announced agreements with Cangene, Advantek and now Serologicals.

    Outlook:

    The Board considers it unlikely that the Company can achieve its stated goals to halve the operating deficit for the fiscal year. Revenues from the Commercial Separations business unit in particular are lumpy and difficult to forecast. Nonetheless, our current forecast anticipates the second half loss to be significantly lower – in the range of $4 million.

    About Gradipore

    Gradipore (ASX Code: GDP) is an Australian global biotechnology company which researches, develops, manufactures and markets hematological and separation technologies principally to provide increased efficiency for research and development for the life science market throughout the world.

    Gradipore’s core separations technology platform, Gradiflow, is a unique membrane-based process for biological separations and has a wide range of applications in research, scientific and commercial environments including blood purification and biological drug manufacturing. Unlike other blood purification technologies, Gradiflow can purify proteins and remove viral and bacterial pathogens (and now prion proteins) simultaneously.

    For information on Gradipore, visit the company’s corporate web site at www.gradipore.com

    Investor inquiries -
    Media inquiries -

    Simone Lockwood
    David Lumb or Jonathan Revitt

    Gradipore Limited
    Porter Novelli

    (02) 8977-9000
    (02) 9463 7600

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