Shares of Somnomed Limited (ASX: SOM) have rallied higher today after the small-cap medical device maker reported a strong finish to the 2015 financial year.
SomnoMed, which specialises in continuous open airway therapy (COAT) for the treatment of various sleep-related breathing disorders such as obstructive sleep apnea, said that it has broken sales records in all three of its geographic regions with a total 21.2% year-on-year growth for the quarter.
Over the three-month period, SomnoMed sold 14,517 units with sales exceeding 8,000 units in North America, which is an increase of 26.4% compared to the same quarter last year. At the same time, the group sold more than 5,000 units through Europe and 1,400 units in the APAC/Japan region.
As a result, SomnoMed expects to exceed its guidance of $32.5 million in revenue with a total of 51,355 units sold throughout the year, up 18.2% compared to 2014.
Pleasingly, the company also expects to continue growing strongly during the 2015/16 financial year and beyond. Its freshly approved SomnoDent devices fitted with DentiTrac Micro-Recorders should certainly help the company achieve this growth, in that it will enable advanced compliance recording which differentiates its products from those offered by larger rivals such as ResMed Inc. (CHESS) (ASX: RMD) and Fisher & Paykel Healthcare Corp Ltd (ASX: FPH).
Given its size, SomnoMed has the potential to grow at a far more rapid pace than either ResMed or Fisher & Paykel and could thus be an excellent way for investors to gain exposure to the sector. The shares have risen 6.7% so far today to trade at $2.88.
