OpSens Announces First Quarter fiscal 2021 financial Results
Quebec City, Quebec, January 13, 2021 – OpSens Inc. (“OpSens” or the “Company”) (TSX:OPS) (OTCQX:OPSSF), a medical device cardiology-focused company delivering diagnostic and treatment solutions based on its proprietary optical technology, today reported its financial results for the first quarter of fiscal 2021, ended November 30, 2020.
First Quarter Financial Highlights
- Total revenue of $8.3 million, an increase of 19%, compared with $7.0 million for the first quarter of fiscal 2020;
- FFR and dPR sales of $5.3 million, an increase of 23%, compared with $4.3 million for the first quarter of fiscal 2020;
- Net income of $0.6 million, an improvement of $2.5 million, compared with the first quarter of fiscal 2020;
- Cash and cash equivalents were $12.2 million as of November 30, 2020 ($10.9 million as of August 31, 2020).
Recent Developments
- Awarded 3-year contract in October 2020 with major American group purchasing organization (“GPO”) to provide access to the OptoWire to their member hospitals across the United States;
- Progress in the development of a guidewire for transcatheter aortic valve replacement (TAVI or TAVR) procedures.
Management Commentary
“I am pleased with the financial results of the first quarter of fiscal 2021, as we achieved solid double-digit top- and-bottom line growth. These positive results reflect the continued confidence of our customers and partners in our team, products and technologies,” said Louis Laflamme, President and CEO of OpSens. “During the first quarter, we made strong progress to increase the adoption of the OptoWire in the coronary artery stenosis measurement market, particularly in the United States where we executed our first group purchasing agreement. We are in discussions with others and believe this, coupled with the introduction of the OptoWire III, will be key to the expansion of the OptoWire going forward.”
Financial Results – Quarter ended November 30, 2020
Total revenue was $8.3 million, an increase of 19% in the first quarter of 2021 compared with $7.0 million in the first quarter of 2020.
Sales of products for the measurement of coronary artery stenosis (Fractional Flow Reserve (“FFR”) and diastolic pressure ratio (“dPR”)) were $5.3 million in the first quarter of 2021 compared with $4.3 million in the same period in 2020, an increase of 23%. The increase in sales is primarily the result of growth in the Japanese, American, European, and Canadian markets despite several cardiology laboratories operating at reduced levels due to COVID-19.
Sales of optical medical systems, including the Company’s 5-year supply agreement for ventricular assist device sensors, were $2.0 million in the first quarter of 2021 compared with $2.2 million in the first quarter of 2020.
Industrial sales increased 89% to $1.0 million during the first quarter of 2021 due to overall increase of activities in aeronautic and power electronics applications.
Operating expenses in the first quarter of fiscal 2021 were $4.4 million, down $1.2 million compared with $5.6 million in the first quarter of 2020. The improvement in operating expenses is attributable to a decrease in sales and marketing expenses.
Net income was $0.6 million in the first quarter of 2021 compared with a net loss of $1.9 million in the first quarter of 2020. The $2.5 million improvement is due to a $0.8 million increase in gross margin, a $1.2 million improvement in operating costs, and a $0.5 million subsidy from the Canadian government.
OpSens had a cash and cash equivalents of $12.2 million as of November 30, 2020 ($10.9 million as of August 31, 2020).
Table A
| Consolidated statement of results
(In thousands of Canadian dollars, except for information per share) |
For the quarter ended November 30, 2020 |
For the quarter ended November 30, 2019 |
|
$ |
$ |
|
| Revenues | ||
| Sales | ||
| Medical |
7,336 |
6,461 |
| Industrial |
1,000 |
528 |
|
8,336 |
6,989 |
|
| Cost of Sales |
3,664 |
3,079 |
| Gross margin |
4,672 |
3,910 |
| Gross margin (%) |
56% |
56% |
| Operating Expenses | ||
| Administration |
1,469 |
1,475 |
| Sales and marketing |
1,588 |
2,850 |
| R&D |
1,295 |
1,296 |
|
4,352 |
5,621 |
|
| Other income |
(490) |
– |
| Financial expenses |
216 |
160 |
| Net earnings (loss) and comprehensive income (loss) |
594 |
(1,871) |
| Net earnings (loss) per share – Basic and diluted |
0.01 |
(0.02) |
Table B
| CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(in thousands of Canadian dollars) |
As at |
As at |
| November 30, 2020 |
August 31, 2020 |
|
|
$ |
$ |
|
| Cash and cash equivalents |
12,158 |
10,884 |
| Trade and other receivables |
3,777 |
4,041 |
| Inventories |
6,989 |
6,505 |
| Total Current Assets |
24,202 |
22,543 |
| Property, plant, and equipment |
3,048 |
3,230 |
| Intangible assets |
1,682 |
1,622 |
| Right-of-use assets |
4,368 |
4,513 |
| Total Assets |
33,300 |
31,908 |
| Current liabilities |
6,723 |
5,655 |
| Long-term debt |
6,348 |
6,608 |
| Lease liabilities |
4,213 |
4,298 |
| Total Liabilities |
17,284 |
16,561 |
| Shareholders’ equity |
16,016 |
15,347 |
About OpSens Inc. (www.OpSens.com or www.OpSensmedical.com)
OpSens focuses mainly on coronary artery stenosis measurement in interventional cardiology. The Company 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 100,000 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 fiber 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