SHL Telemedicine reports 85% surge in Q3 revenue to $9.3 million

Joint venture with Philips Medical Systems to provide heartcare monitoring service in Europe has commenced operation
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SHL TeleMedicine (SWX:SHLTN) reported an 85% surge in third-quarter revenue against the parallel to $9.3 million.

Its third-quarter revenue was 29% more than achieved in the second quarter of this year, throughout which the Israeli-Swiss telemedicine company has shown steady growth.

Net profit climbed to $7.7 million, $20,000 more than in the third quarter last year and 6.5 times its result in the second quarter.

Earnings per share in the third quarter grew to 72 cents, compared with 3 cents in the same period last year.

Revenue for the first nine months rose to $22 million, 53% more than the $14.3 million reported for the parallel period of last year.

Products contributed 51% of total revenue, with services comprising the rest.

Cash at the end of the third quarter was $63 million. Revenue from financing activity was $5.4 million.

The company benefited from the weakening of the shekel against the dollar. Operating profit came to $4 million, compared with $1.5 million in the third quarter last year, and $2.2 million in the second quarter.

In January this year SHL and Philips Medical Systems launched a joint venture in Switzerland, Germany and Italy. The venture, called Philips HeartCare Telemedicine Services Europe, incorporates SHL's telemedicine systems with Philips' medical products. The first center was established in Zurich, Switzerland, and began operating in the third quarter.

SHL, which owns a 19.9% interest in the venture with an option to increase its stake to 33%, will be receiving income from royalties and the sale of devices.

SHL TeleMedicine develops personal telemedicine systems for individual use and telemedicine services by heart and lung patients. It is controlled by the Alroy family and by Philips Medical Systems. Other shareholders include the South African investment group Tower Holdings (14.8%), GZ Asset (8.6%), and the IF International Fund (4.1%). The public owns 35.1%.