Pro Medicus (ASX: PME) is expected to trade higher after reporting a net profit after tax of $1.51 million for its continuing operations for the year ended 30 June 2014, compared with a loss of $3.48 million in the previous year.
The key driver was revenue from new contracts in the U.S. and the start of revenue from a contract with the U.S. health system that was signed in April.
This contract is structured on an operational model, based on transaction numbers, so revenue will grow as PME's product is installed across more of the customer’s network.
This means revenue should continue to build toward the second half of this year.
Full year revenue from continuing operations increased from $11.37 million to $14.45 million, an increase of 27.1%.
Underlying operations for the year delivered profit of $1.58 million, compared to an underlying loss of $0.65 million from the previous year.
The underlying profit is made up of reported profit after-tax of $1.51 million and adding back the after-tax net currency loss of $0.07 million.
EBIT was $2.27 million, up from a loss of $0.52 million, with the second half bringing EBIT of $2.15 million compared with $0.12 million in the first half.
PME provides radiology information systems, digital radiology integration products and innovative clinical software, and is valued at around $90 million.
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