Avita Medical reduces net loss in FY08

Lower operating expenses have reduced Avita Medical Ltd's full year net loss to $12.2 million, down from the previous year's loss of $15 million.

The company, formerly known as Clinical Cell Culture, said today the net loss included amortisation and impairment of intangible assets.

Excluding those factors, Avita's net loss for the 2008 financial year was $4 million.

The result was struck on a 13 per cent increase in total revenue to $1.8 million, while sales revenue rose from $931,954 from the previous year to $1.1 million.

Below is the media statement:

Avita Medical Limited (ASX: AVH) today released its preliminary final results for the 2008 financial year.

The 2008 financial year has been a significant year for the Company. The merger with Visiomed Group Ltd was completed in February 2008 and the Company has implemented a number of significant changes to its organisational structure and focus in the period post merger.

The Company changed its name to Avita Medical Ltd and completed a reorganisation of capital structure through a 1-for-10 share consolidation.

Sales revenue in the year was $1,085,087 compared to $931,954 in the prior period. The absence of sales of CellSpray® and CellSpray XP® in the current year, following the decision to put sales of these products on hold, has been more than compensated by the revenue from the Company's respiratory products in the period following the merger with Visiomed.

The net loss for the year before amortisation and impairment of intangible assets was $4,030,983 which compares to a loss of $8,698,561 in the previous period. The net loss for the year after including amortisation and impairment of intangible assets was $12,188,280 (2007: $15,065,061).

CEO Dr William Dolphin said the 2008 financial year had been an important and productive period for the Company.

"Avita Medical has undergone a major transformation following the merger of Clinical Cell Culture and Visiomed Group with implementation of significant changes in organisational structure and focus," said Dr Dolphin.

"As a re-launched company with a highly experienced management team and a healthy cash balance behind us, we have started the new financial year with expectations for an improved performance in the year ahead."

Operating expenses excluding amortisation and impairment of intangible assets have reduced by $3,477,559 representing a decrease of 37%. The Company is in a strong cash position with a cash balance at 30 June 2008 of $9.3m.