Quebec City, Quebec, April 12, 2018 – Opsens Inc. (“Opsens” or the “Company”) (TSX:OPS) (OTCQX:OPSSF) today reported its results for the second quarter ended February 28, 2018.
Highlights
- Consolidated product sales reached $5,352,000 compared with $3,710,000 for the same period last year, an increase of $1,642,000 or 44,3%;
- Fractional Flow Reserve (“FFR”) revenues reached $3,313,000 in the second quarter of 2018 compared with $3,117,000 for the same period last year, an increase of $196,000 or 6,3%;
- Other medical revenues for the three-month-period ended February 28, 2018 reached $1,614,000 compared with $150,000 for the same period last year, an increase of $1,464,000 or 976%;
- Consolidated product sales for the first half of 2018 totalled $10,687,000 compared with $7,363,000 last year, an increase of $3,324,000 or 45,1%;
- FFR revenues for the first half of fiscal 2018 reached $6,672,000 compared with $5,860,000 for the same period last year, an increase of $812,000 or 13,8%;
- Opsens’ technology granted FDA approval in Abiomed, Inc.’s (“Abiomed“) Impella Cardiac PumpTM (“Impella CPTM“).
Execution of the growth strategy
Overall, consolidated product sales grew by $1,642,000. This increase was driven by a revenue growth of $1,464,000 in other medical products and of $196,000 in FFR. The growth in other medical products is the result of an increase in sales of sensor products to Abiomed, for their integrated product platforms. In FFR, the increase is mostly the result of a growth of close to 300% in the United States. The FFR growth was offset by a temporary decline in FFR revenues in Japan due to real-time supply-chain improvements.
“We are pleased with the increase in product sales and also by the recent FDA-clearance of Opsens’ technology in the Impella CPTM produced by our client, Abiomed. Additionally, the OptoWire is increasingly being used in the U.S. market, which represents a strong growth opportunity for Opsens. Improvements to the real-time supply chain have reduced the need for our Japanese partner to keep OptoWire inventories high, resulting in a temporary decrease in FFR revenues in Japan. We anticipate our revenues to return to normal levels in Japan where we are witnessing an increase in the use of OptoWire in patients,” said Louis Laflamme, President and CEO of Opsens.
Financial results – quarter ended February 28, 2018
Opsens’ product sales reached $5,352,000 for the three-month period ended February 28, 2018, compared with $3,710,000 for the corresponding period the previous year. This significant increase is mainly explained by an increase in other medical revenue compared with the corresponding quarter in 2017.
Also, the Company recognized non-recurring licensing revenues of $90,000 in the second quarter of 2018 compared with $1,098,000 for the corresponding quarter of 2017, for total consolidated revenues of $5,442,000 in the second quarter of 2018, compared with $4,808,000 in the second quarter of 2017.
Gross margin increased to $2,793,000 for the quarter ended February 28, 2018 compared with $2,254,000 for the same period a year earlier. Excluding the decrease in non-recurring licensing revenue, gross margin increased to $2,703,000 from $1,156,000.
The net loss amounted to $1,267,000 for the three-month period ended February 28, 2018, compared with a net loss of $1,001,000 for the corresponding period last year, a variation of $266,000 mainly explained by an increase of $672,000 in sales and marketing expenses partially offset by an increase in gross margin.
Opsens had a cash position of $11,995,000 as at February 28, 2018 ($12,570,000 at August 31, 2017).
| (In thousands of Canadian dollars, except for information per share) | Three-Month Period Ended
February 28, 2018 |
Three-Month Period Ended
February 28, 2017 |
Six-Month Period Ended
February 28, 2018 |
Six-Month Period Ended
February 28, 2017 |
| $ | $ | $ | $ | |
| Revenues | ||||
| Sales | 5,352 | 3,710 | 10,687 | 7,363 |
| Licensing | 90 | 1,098 | 1,119 | 1,190 |
| 5,442 | 4,808 | 11,806 | 8,553 | |
| Cost of Sales | 2,649 | 2,554 | 5,677 | 5,108 |
| Gross margin | 2,793 | 2,254 | 6,129 | 3,445 |
| Expenses (incomes) | ||||
| Administration expenses | 942 | 862 | 1,671 | 1,750 |
| Sales and marketing expenses | 2,234 | 1,562 | 4,430 | 3,332 |
| R&D expenses | 874 | 814 | 1,745 | 1,550 |
| Financial expenses (revenues) | 10 | (29) | (15) | 123 |
| Change in fair value of embedded derivative | – | 46 | 501 | 232 |
| 4,060 | 3,255 | 8,332 | 6,987 | |
| Net loss and comprehensive loss | (1,267) | (1,001) | (2,203) | (3,542) |
| Net loss per share – Basic and diluted | (0.01) | (0.01) | (0.03) | (0.05) |
About Opsens Inc. (www.opsens.com or www.opsensmedical.com)
Opsens focuses mainly on the measure of FFR in interventional cardiology. Opsens offers an advanced optical-based pressure guidewire (OptoWire) that aims at improving the clinical outcome of patients with coronary artery disease. Opsens is also involved in industrial activities in developing, manufacturing and installing innovative fibre optic sensing solutions for critical applications.
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Opsens to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
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For further information, please contact: Louis Laflamme, CPA, CA, Chief Executive Officer, 418.781.0333
Robin Villeneuve, CPA, CA, Chief Financial Officer, 418.781.0333
