Sound Q1 17 trading statement
EARNINGS/SALES RELEASES
FACT

DMS released Q1 17 sales. Revenues reached €7.2m, -3% and +9% on a comparable basis.


ANALYSIS

The core DMS Imaging segment was up 11% in Q1 to €6m, supported internationally by the distribution agreements with Toshiba Medical Systems Europe and Carestream Health, while French sales also benefited from the first orders stemming from the NGI Group agreement (see our update on 12 January 2017). As expected, DMS Wellness has not generated revenues (first sales expected in H2) and DMS Biotech is up 7%, although the sales level was still not very significant (€0.1m in Q1). Also, the group announced on 10 May a distribution agreement in Thailand for its lipofilling solutions, which should generate at least €1.75m revenues over five years for this segment and came after a similar agreement in Japan (securing €6.5m in sales over 10 years). As far as Alpha Mos is concerned, sales were down 46% to €1m, which in fact is a 1% decrease on a comparable basis, i.e. after the disposal of the Japanese subsidiary completed last January.


IMPACT

We will not materially change our numbers after the Q1 revenue numbers which are in line with our expectations. The new agreement in Thailand is good news for the Biotech segment and further supports our forecasts and target price.