QUEBEC CITY, Nov. 15, 2017 /CNW Telbec/ - Opsens Inc. ("Opsens" or the "Company") (TSX: OPS) (OTCQX: OPSSF) today reported its results for the year ended August 31, 2017.
Highlights
- Record consolidated revenues for fiscal year 2017 at $17.8 million;
- Revenues for Fractional Flow Reserve ("FFR") at $12.4 million for fiscal year 2017 compared with $5.2 million in fiscal year 2016, an increase of 138%;
- FFR revenues at $2.8 million in the fourth quarter of 2017 compared with $2.1 million in the corresponding quarter of 2016, an increase of 33%;
- The performance of the OptoWire featured in an article in Cardiovascular Intervention and Therapeutics;
- Closing of a $15 million equity financing;
- Graduation to the Toronto Stock Exchange, the largest stock market in Canada.
Growth Strategy
Opsens' commercial teams continue to demonstrate the ability to gain market share in FFR by driving growth more than 138% to $12.4 million in fiscal year 2017. "Our commercial teams, coupled with the OptoWire's distinctive features, will enable us to continue to capitalize on the fast-growing FFR market," said Louis Laflamme, Opsens' President and Chief Executive Officer.
"Key opinion leaders in interventional cardiology are increasingly recognizing the value and advantages of the OptoWire which is driving our continuous growth. We continue to focus on production process enhancements that improve yields and reduce costs as we gain more share and sell more units," Louis Laflamme added.
The OptoWire's Performance Highlighted in a Medical Journal
The OptoWire' performance was highlighted recently in the journal Cardiovascular Intervention and Therapeutics. According to the results obtained with 90 OptoWire units, it may be reasonable to use Opsens' guidewire as a workhorse-type guidewire in percutaneous coronary interventions. These results are quite positive and support the OptoWire's strong value proposition.
Financial Results for the Year Ended August 31, 2017
Opsens' revenues were higher for the year ended August 31, 2017, at $17.8 million compared with $9.6 million in 2016. Opsens saw an increase of $7.1 million in FFR revenues, $1.7 million in other medical revenues and of $1.0 million in non-recurring partnership revenues. Total revenues were partially offset by a decrease of $1.6 million in industrial revenues.
| (In thousands of Canadian dollars, except per share information) |
For the year ended |
For the year ended |
| $ |
$ |
|
| Sales |
16,378 |
9,234 |
| Licensing agreement |
1,374 |
367 |
| 17,752 |
9,601 |
|
| Cost of sales |
10,252 |
7,970 |
| Gross margin |
7,500 |
1,631 |
| Administrative expenses |
3,774 |
3,685 |
| Sales and marketing expenses |
6,975 |
3,694 |
| R&D expenses |
3,131 |
2,744 |
| Financial expenses (revenues) |
(7) |
57 |
| Change in fair value of embedded derivative |
164 |
733 |
| 14,037 |
10,913 |
|
| Loss before income taxes |
(6,537) |
(9,282) |
| Current income tax expense |
- |
- |
| Net loss and comprehensive loss |
(6,537) |
(9,282) |
| Net loss per share – Basic |
(0.08) |
(0.14) |
| Net loss per share – Diluted |
(0.08) |
(0.14) |
Financial Results for the Three-Month Period Ended August 31, 2017
Consolidated sales reached $4.3 million for the three-month period ended August 31, 2017 compared with $3.0 million for the same period in 2016. This 43% increase is explained by an increase of $0.8 million in medical sales other than FFR and of a growth of $0.7 million in FFR sales, partially offset by a decrease in industrial revenues.
For the three-month periods ended August 31, 2017 and 2016, gross margin reached $2.0 million in 2017 compared with a negative margin of $0.1 million in 2016. This sharp increase is the result of continued optimization of FFR production activities, as well as the increase of other medical income.
In 2016, the gross margin had been affected by higher production losses. In addition, $0.5 million in non-recurring write-offs in inventories related to our oil and gas operations also had an unfavorable impact on gross margin.
For fiscal year 2018, management anticipates production output will continue to grow to a higher target level given the improvements in operations already in effect.
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.
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.
SOURCE OPSENS INC.
Louis Laflamme, CPA, CA, Chief Executive Officer, 418.781.0333; Robin Villeneuve, CPA, CA, Chief Financial Officer, 418.781.0333
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