Quebec City, Quebec, November 28, 2018 – Opsens Inc. (“Opsens” or the “Company”) (TSX:OPS) (OTCQX:OPSSF) today reported its results for the fourth quarter and fiscal year ended August 31, 2018.
Highlights for the quarter and for the year
- Fractional Flow Reserve (“FFR”) revenues reach $4.1 M in the fourth quarter of 2018 compared with $2.8 M in the same quarter of 2017, an increase of 46%;
- Record consolidated revenues at $24.1 M for FY2018 compared with $17.8 M for FY2017, a 35% increase;
- Gross profit margin increases to 53% from 42% compared to last year;
- FFR sales at $14.3 M for FY2018 compared with $12.4 M for FY2017, an increase of 15%;
- FFR product revenues for FY2018 increase by 94% in the United States compared with last year;
- Japan’s Ministry of Health, Labor and Welfare (“MHLW”) introduces new regulations requiring a physiology assessment of all coronary artery stenosis prior to treatment utilizing FFR products including the OptoWire.
Consolidated revenue growth in FY2018 demonstrates the evolution of Opsens’ business. In addition to the progression of its FFR activities in the United States and around the world, Opsens’ technologies are also increasingly used by medical companies within their products. “We are pleased with the sales’ growth in product for the measurement of FFR, particularly in the United States, where sales grew substantially over FY2017. The OptoWire and the future commercialization of our new algorithm to measure pressure at rest, Opsens dPR, will strengthen revenue growth in cardiology in 2019,” said Louis Laflamme, President and Chief Executive Officer of Opsens.
“Key opinion leaders in interventional cardiology increasingly recognize the value and benefits of the OptoWire, a key driver of our growth. We will continue to focus on increasing our penetration into cath labs, on launching new products and on improving production processes to stimulate market share growth while increasing profit margins,” added Mr. Laflamme.
Financial Results – Year Ended August 31, 2018
Opsens’ consolidated products sales reached $22.1 M for the year ended August 31, 2018 compared with $16.4 M the previous year. This increase is explained by a $5.1 M increase in medical revenues and of $0.6 M in industrial revenues, compared with 2017. In addition, the Company recorded non-recurring licensing revenues of $2.0 M compared with $1.4 M the previous year.
Gross margin for the year ended August 31, 2018, compared with the same period last year, increased from 42% to 53%. Excluding non-recurring licensing revenue, the gross margin increased from 37% to 49% ($6.1 M for the year ended August 31, 2017 to $10.8 M for the year ended August 31, 2018). This increase is the result of the optimization of FFR production activities as well as the increase in other medical income.
Net loss amounted to $4,5 M for the year ended August 31, 2018, compared with a net loss of $6.5 M for the same period last year, a positive change of $2.0 M. This variation is mainly explained by an increase in the gross margin partially offset by an increase in sales and marketing expenses.
Opsens had a cash position of $10.9 M as at August 31, 2018 ($12.6 M as at August 31, 2017).
|(In thousands of Canadian dollars, except for information per share)||For the year ended August 31, 2018||For the year ended August 31, 2017|
|Cost of Sales||11,330||10,252|
|Sales and marketing expenses||9,273||6,975|
|Financial expenses (revenues)||(50)||(7)|
|Change in fair value of embedded derivative||501||164|
|Net loss and comprehensive loss||(4,550)||(6,537)|
|Net loss per share – Basic and diluted||(0.05)||(0.08)|
Financial results for the three-month period ended August 31, 2018
Consolidated revenues reached $5.9 M for the three-month period compared with $4.3 M for the same period last year, an increase of $1.6 M or 37%. This increase is mainly related to the increase in FFR sales that reached $4.1 M compared with $2.8 M in the 2017 comparative quarter.
For the three-month periods ended August 31, 2018 and 2017, gross margin was $3.0 M (51%) and $2.0 M (47%), respectively.
Opsens focuses mainly on the measure of FFR and dPR in interventional cardiology. Opsens offers an advanced optical-based pressure guidewire that aims at improving the clinical outcome of patients with coronary artery disease. Its flagship product, the OptoWire, is a 2nd-generation fiber optic pressure guidewire designed to provide the lowest drift in the industry and excellent lesions access. The OptoWire has been used in the diagnosis and treatment of over 50,000 patients in more than 30 countries. It is approved for sale in the United States, European Union, Japan, and Canada.
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.
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