(Alliance News) - LiDCO Group PLC on Tuesday reported double-digit product revenue growth thanks to strong performance in the US in the first half of its current financial year.
Total revenue, including third party products, was down 2.8% to GBP3.5 million in the six months to July as a result of the termination of the Argon Critical Care distribution contract.
The hemodynamic monitoring company said product revenue in the first half was up 10% to GBP3.3 million, slightly above board expectations.
Geographically, US revenue was up 47% to GBP900,000, with growth driven by the continued success of the high usage programme offering, enabling the company to take share in this market by targeting high volume users of advanced hemodynamic monitoring, it said.
In the UK, LiDCO product revenue declined by 8% to GBP1.6 million due to the timing of certain large orders and the company's decision to transition four of its largest customers to the high usage programme business model.
The strategy to actively convert UK customers to the software-as-a-service business model has a transitional impact on revenue, as these customers typically de-stock inventory ahead of transitioning to high usage programme, LiDCo explained.
Outside of the firm's two direct markets, sales grew by 27% to GBP830,000.
"It's been a good start to the year that has enabled us to transition more UK customers to high usage programme," said Chief Executive Matt Sassone.
"With high usage programme gathering more momentum, we are focussed on achieving a strong second half performance as the business moves progressively towards breakeven," added Sassone.
The company intends to announce its interim results on October 15. LiDCO shares were trading 2.5% higher in London on Tuesday at 4.05 pence each.
