Hearing implant company Cochlear says its profits have risen 16 per cent to $128.6 million, but its shares have plunged after it said its growth in US and Europe has slowed.
The company said its sales revenue was up 11 per cent (6 per cent in constant currency) to $711.9 million.
The company declared an interim dividend of $1.55, an increase of 11 per cent on last year.
‘Cochlear continues to target the delivery of consistent revenue and earnings growth over time,’ chief executive Dig Howitt said.
The company said it was experiencing strong growth in Japan but lower growth in the US and Europe, particularly German, after a competitor launched its product.
The company derives nearly half its revenue from the Americas and sales were up just 3 per cent on a constant currency basis there.
At 1009 AEDT its shares were down 9.15 per cent, or $17.79, to $176.66.
The company also declared a contingent liability involving litigation with the Alfred E. Mann Foundation for Scientific Research and Advanced Bionics LLC.
A US federal court in November awarded them $US268 million ($A375m) against Cochlear in a long-running patent dispute.
The company is appealing the decision and says if the appeal is unsuccessful the company expects to be able to access debt facilities to fund it.
Since the patent at issue at expired the litigation doesn’t affect Cochlear’s current portfolio.
Sydney-based Cochlear has sold more than 550,000 implants to people around the world with moderate to profound hearing loss. Its latest model allows users to control it from their smartphone.
COCHLEAR H1 PROFIT LIFTS
* Half-year net profit up 16pc to $128.6 million
* Revenue up 11pc to $711.9 million
* Interim dividend up 11 pc to $1.55, 100 per cent franked