Healthcare company, Admedus Ltd (ASX:AHZ) has recorded a strong March quarter with sales of $3.3 million, up 73% on the corresponding period last year.
Sales for the nine months ending 31 March, 2016 were $9.7 million, which is nearly equal to the entire FY2015 sales of $10.2 million.
Admedus anticipate recording its strongest ever revenue performance for the June quarter 2016.
Cost efficiencies and productivity improvements were achieved with a 16% decrease in staff expenses and 7% decrease in working capital compared with the previous quarter.
Admedus continues to progress its strategy of developing multiple revenue streams and building a global healthcare company.
The company’s net cash position as at 31 March 2016 was $13 million.
Admedus' flagship product is CardioCel, a bio-engineered tissue scaffold to repair congenital heart defects.
CardioCel has now been implanted in over 4000 patients in over 145 centres globally, and is becoming a surgeon-preferred biomaterial for heart valve repair surgeries.
It represents a disruptive technology in the $2.5 billion heart valve repair and replacement market.
CardioCel sales for the March quarter were $1.4 million, up 83% from the March 2015 quarter.
Admedus has also recently entered into an exclusive distribution agreements to distribute the Coroneo extra-aortic annuloplasty ring in the UK, Germany, Australia and New Zealand.
The Coroneo extra-aortic annuloplasty ring is a complementary product to CardioCel for repairs of aortic heart valves.
Admedus anticipates booking first sales of the product in Europe in the fourth quarter of 2016 and seeing first revenues from this in Germany with first orders now received.
The Admedus infusion portfolio continues to provide strong revenue growth with $6.2 million of sales year to date.
With over 800 customers, the Admedus team continues to provide hospital-wide infusion solutions across the Australian and New Zealand healthcare systems.
Admedus will be targeting future tenders to drive additional sales.
Investment in sales channels by Admedus has yielded reward with the company continuing to post strong revenue growth.
During the March quarter, Admedus achieved first CardioCel sales in the Middle-East and North African region and anticipates additional sales in this region going forward.
Efforts by the company to cut costs and improve productivity have been successful with further efficiencies forecast for the final quarter.
The stock is trading at around A$0.40, which represents a large discount to its broker price targets of A$1.95 and A$2.00.
With the company anticipating its strongest ever final quarter, FY2016 sales are set to show strong growth on FY2015.
The company is well capitalised with $13 million in the bank.
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