CogState (ASX: CGS) has reported a half year Net Proft After Tax of A$0.5 million on revenue of A$5.1 million for the period ended 31 December 2009.
This is in line with guidance previously issued. NPAT declined by A$0.8 million on the previous corresponding period. The decline in NPAT can be attributed to non-operating items.
Revenue increased by 31% delivering a 27% increase in operating profit to $0.9 million.
Importantly, sales contracts to the value of A$1.9 million have been signed since 1 January 2010, taking the value of sales contracts signed since 1 July 2009 to A$8.2 million (US$7.2 million).
Contracts already in place will generate A$5.7 million of revenue in future periods, of which A$2.7 million is expected to be recognised in FY2010.
The company has not provided full year profit guidance at this stage due to the significant expansion of CogState’s business, with revenue growing rapidly and, as a consequence, headcount and costs also increasing.
CogState specialises in the development and commercialisation of rapid, computerised tests of cognition (brain function).
The tests are sold to pharmaceutical, biotechnology, nutraceutical and functional food companies to quantify the effect of drugs or other interventions on human subjects participating in clinical trials.