Quebec City, Quebec, April 11, 2019 – Opsens Inc. (“Opsens” or the “Company”) (TSX:OPS) (OTCQX:OPSSF) today reported its results for the second quarter of 2019.
Highlights
- Consolidated revenues totaled $7.9 M in the second quarter of 2019 compared with $5.4 M in the corresponding period in 2018, an increase of $2.5 M or 46%;
- Fractional Flow Reserve (“FFR”) revenues of $4.9 M for the second quarter 2019 compared with $3.3 M for the same period last year, an increase of 48%;
- Appointment of Alan Milinazzo as Executive Chairman of the Board of Directors;
- $8 M credit agreement with CIBC Innovation Banking;
- Opsens’ dPR welcome in the interventional cardiology community in Japan, EMEA and Canada.
Growth strategy
Opsens’ revenues reached a record level, a result of the growth of its medical business lines. FFR revenues increased by 48% year over year. “These results reflect cardiologists’ acceptance of the OptoWire’s distinctive features and the optimization of our sales approach deployed in the past year,” said Louis Laflamme, President and Chief Executive Officer of Opsens. “We are also pleased to report that our dPR, designed to assess intracoronary pressure without the injection of drug-stimulating medication, is gaining traction in the market,” he added.
“We continue to focus on improvements processes in sales, production and on driving innovation to capitalize on the growing physiology measurement market in cardiology,” concluded Mr. Laflamme.
Financial results – quarter ended February 28, 2019
Opsens’ product sales reached $7.2 M in the three-month period ended February 28, 2019 compared with $5.3 M in the same period the previous year. This increase is mainly explained by an increase in FFR revenues compared with the same quarter the year before. In addition, the Company recorded non-recurring license revenue of $0.7 M ($0.1 M for the same quarter last year) for consolidated total revenues of $7.9 M ($5.4 M for last year) for the quarter.
Gross margin increased to $4.6 M for the quarter ended February 28, 2019 from $2.8 M in the same period last year. Non-recurring licensing revenues accounted for $0.6 M of this increase.
Net loss totaled $0.4 M for the three-month period ended February 28, 2019, compared with a net loss of $1.3 M for the same period last year.
As of February 28, 2019, the Company had a cash position of $10.3 M ($10.9 M as of August 31, 2018).
| (In thousands of Canadian dollars, except for information per share and gross margin percentage) | Three-Month Period Ended
February 28, 2019 |
Three-Month Period Ended
February 28, 2018 |
Six-Month Period Ended
February 28, 2019 |
Six-Month Period Ended
February 28, 2018 |
| $ | $ | $ | $ | |
| Revenues | ||||
| Sales | ||||
| Medical | 6,548 | 4,927 | 12,755 | 9,637 |
| Industrial | 707 | 425 | 1,301 | 1,050 |
| 7,255 | 5,352 | 14,056 | 10,687 | |
| Licensing | 664 | 90 | 2,966 | 1,119 |
| 7,919 | 5,442 | 17,022 | 11,806 | |
| Cost of Sales | 3,361 | 2,649 | 6,823 | 5,677 |
| Gross margin | 4,558 | 2,793 | 10,199 | 6,129 |
| Gross margin (%) | 58% | 51% | 60% | 52% |
| Expenses (incomes) | ||||
| Administration expenses | 1,126 | 942 | 2,238 | 1,671 |
| Sales and marketing expenses | 2,460 | 2,234 | 4,883 | 4,430 |
| R&D expenses | 1,319 | 874 | 2,392 | 1,745 |
| Financial expenses (revenues) | 27 | 10 | (33) | (15) |
| Change in fair value of embedded derivative | – | – | – | 501 |
| 4,932 | 4,060 | 9,480 | 8,332 | |
| Net loss and comprehensive loss | (374) | (1,267) | 719 | (2,203) |
| Net loss per share – Basic and diluted | 0.00 | (0.01) | 0.01 | (0.03) |
About Opsens Inc. (www.opsens.com or www.opsensmedical.com)
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 second-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 60,000 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.
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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