LONDON (Alliance News) - Immunodiagnostic Systems Holdings PLC said Tuesday it expects its revenue for the first half to be down on the previous year, as the near-term trading environment for its business "remains challenging."
As it has previously flagged up in August and September, the company has seen a low level of placements, meaning instruments sold or leased to customers, and a faster decline in manual revenues, driven by lower 250H Vitamin D sales. This means it now expects revenues to GBP22 million in the first half to end-September, compared to GBP27 million a year before.
Automated revenues fell by around 9% compared to the previous year as it saw number of instrument returns, and continued price pressure on its automated Vitamin D assay.
The company said that the number of direct instruments placed, meaning those sold or leased to a reagent rental end-user customer in its core markets, were eight compared to 16 a year before. Total instruments placed and sold to original equipment manufacturers was 15, compared to 45 a year before.
Immunodiagnostic said it continues to make good progress in Brazil and China, and is in the process of placing two instruments with a customer in Brazil. It has received its first instrument order in China, for 25 IDS-iSYS instruments by the end of the year.
The company said it is continuing to executive on its plan of increasing the range of assays available for its IDS-iSYS instrument, and development of its Mark II instrument continued. It expects to launch the new instrument in the first half of 2015.
In June, Immunodiagnostic Systems set out a five-year strategy plan after reviewing its business. The strategy aims to double revenues from current levels, increase the offering of assays for use on its IDS-iSYS testing technology to over 80 assays, and increase the installed based of its IDS-iSYS instruments by over 1,000.
"The near-term trading environment for IDS remains challenging," said Chief Executive Patrik Dahlen in a statement Tuesday. "However, the path to sustainable growth will be based on the expansion of our assay menu and the launch of our new automated instrument and we continue to work hard to deliver on both of these strategic initiatives."
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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