Optomed Plc Stock Exchange Release
July -
· Revenue decreased by 6.0 percent to
· EBITDA, gross profit, and gross margin all increased
· Adjusted EBITDA amounted to
· The COVID-19 pandemic continued to negatively affect the Devices segment revenue, whereas the Software segment continues its solid performance
· Major Chinese customer continued purchases which drove the revenue growth in
· The launch of Aurora IQ, the first fully integrated AI camera, is scheduled to begin on
· US business expansion continues as planned and the first deliveries have been made
· The outlook for 2020 announced on
January -
· Revenue decreased by 15.8 percent to
· Adjusted EBITDA amounted to
· The COVID-19 pandemic has negatively affected the Devices segment whereas the Software segment continues its solid performance
Key figures
EUR, thousand Q3/20 Q3/201 Change, Q1 Q1-Q3/ Change, 2019
20 9 % -Q3/ 2019 %
2020
Revenue 3,338 3,551 -6.0% 8,969 10,649 -15.8% 14,977
Gross profit 2,262 2,035 11.2% 6,146 7,199 -14.6% 9,944
*
Gross margin 67.8% 57.3% 68.5% 67.6% 66.4%
% *
EBITDA 229 -546 141.9% -671 -885 24.1% -335
EBITDA margin 6.9% -15.4% -7.5% -8.3% -2.2%
*, %
Adjusted 229 -160 243.1% -671 19 -3565.4% -196
EBITDA *
Adjusted 6.9% -4.5% -7.5% 0.2% -1.3%
EBITDA margin
*, %
Operating -278 -1,109 75.0% -2,312 -2,563 9.8% -2,596
result
(EBIT)
Operating -8.3% -31.2% -25.8% -24.1% -17.3%
margin
(EBIT) *, %
Adjusted -278 -723 61.6% -2,312 -1,659 -39.4% -2,457
operating
result (EBIT)
*
Adjusted -8.3% -20.4% -25.8% -15.6% -16.4%
operating
margin (EBIT
margin)
*, %
Net profit/ -299 -1,256 76.2% -2,525 -2,817 10.4% -2,875
loss
Earnings per -0.02 -0.14 83.7% -0.19 -0.32 38.8% -0.32
share
Cash flow -400 -530 24.5% -3,215 -1,839 -74.8% 161
from
operating
activities
Net Debt -4,381 8,354 152.4% -4,381 8,354 -152.4% -8,940
Net debt/ 5.0 8.5 5.0 8.5 45.6
Adjusted
EBITDA (LTM)
Equity ratio 66.5% 28.0% 66.5% 28.0% 57.2%
*
R&D expenses 248 342 -27.3% 1,011 1,096 -7.8% 1,540
personnel
R&D expenses 31 79 -61.0% 152 168 -9.8% 234
other
costs
Total R&D 279 421 -33.6% 1,163 1,265 -8.1% 1,774
expenses
*)
Alternative
performance
measures,
see section
Alternative
Performance
Measures
for
definitions
and
calculations.
CEO comments
The negative impact of the COVID-19 pandemic on the fundus camera market, the related software market and hence to
Despite the new wave of the pandemic and its impact on healthcare units' operations, the demand for our fundus cameras began to recover during the third quarter in
Sales growth in
Despite the pandemic, our market expansion to the
The development of our new products is proceeding as planned. After the review period, we received a medical devices regulatory approval in
CEO
Outlook 2020 (Unchanged)
We continue to progress our expansion towards the US market and grow our international distributor network. Additionally, we are currently investing in the development of our first fully integrated AI camera with expected commercial launch during 2020.
The COVID-19 pandemic has a negative effect on
Telephone conference
A telephone conference for analysts, investors and media will be arranged on
The participants are requested to register for the call in advance by email to sakari.knuutti@optomed.com.
Please see the call-in numbers below:
FI +358 9 856 26300
SE +46 8 505 218 52
US +1 646 838 1719
FR +33 1 70 99 53 92
The conference id is 346 945 274#.
Please note that by dialing into the conference call, the participant agrees that personal information such as name and company name will be collected.
Group performance
July -
In July-
In July-
In July-
January -
In in July-
In January-
Net financial items amounted to
Cash flow and financial position
In January-
Consolidated cash and cash equivalents at the end of the period amounted to
Net working capital was
Devices segment
The Devices segment develops, commercializes and manufactures easy-to-use, and affordable handheld fundus cameras, that are suitable for any clinic for screening of various eye diseases, such as diabetic retinopathy, glaucoma and AMD (Age Related Macular Degeneration).
EUR, thousand Q3/202 Q3/201 Change, Q1 Q1-Q3/2019 Change, % 2019
0 9 % -Q3/20
20
Revenue 1,537 1,863 -17.5 % 3,359 5,152 -34.8 % 7,309
Gross profit * 933 768 21.4 % 1,872 3,087 -39.4 % 4,200
Gross margin, 60.7 41.2 55.7 59.9 % 57.5%
% * % % %
EBITDA 290 -155 -287.7 -251 -240 -4.8 % -408
%
EBITDA margin, 18.9 -8.3 -7.5 -4.7 % -5.6%
% * % % %
Operating -62 -562 89,0 % -1,437 -1,373 -4.6 % -1,913
result (EBIT)
Operating -4.0 -30.2 -42.8 -26.7 % -26.2%
margin (EBIT), % % %
% *
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
July-
In July-
In July-
In July-
January-
In January-
In January-
In January-
Software segment
The Software segment develops and commercializes screening software for diabetic retinopathy and cancer screening for healthcare organizations. The segment also distributes off-the-shelf products from selected partners to supplement its own solutions and expertise and provides software consultation to support the Devices segment screening solution projects.
EUR, thousand Q3/2020 Q3/2019 Change,% Q1-Q3/ Q1-Q3/ Change,% 2019
2020 2019
Revenue 1,802 1,688 6.7 % 5,610 5,497 2.1 % 7,668
Gross profit * 1,330 1,267 5.0 % 4,274 4,112 3.9 % 5,744
Gross margin, 73.8 % 75.0 % 76.2 % 74.8 % 74.9%
% *
EBITDA 444 426 4.2 % 1,291 1,190 8.4 % 1,667
EBITDA margin, 24.6 % 25.2 % 23.0 % 21.7 % 21.7%
% *
Operating 289 271 6.9 % 836 646 29.4 % 909
result (EBIT)
Operating 16.1 % 16.0 % 14.9 % 11.7 % 11.9 %
margin (EBIT),
% *
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
July -
In July-
In July-
January -
In January-
Group-wide expenses
Group-wide expenses relate to functions supporting the entire group such as treasury, group accounting, legal, HR, IT and public listing expenses.
July -
In July-
January -
In January-
Personnel
Number of personnel at the end of the reporting period.
9/2020 9/2019 12/2019
Devices 54 56 54
Software 38 36 40
Group common 17 13 14
Total 109 105 108
Corporate Governance
Annual General Meeting
The Annual General Meeting held on
The Annual General Meeting resolved in accordance with the proposal of the Board of Directors that no dividend will be paid for the year 2019.
The number of members of the Board of Directors was confirmed as five:
· Seppo Mäkinen,
· Anna Tenstam was elected as a new member of the Board
The Annual General Meeting confirmed the annual Board remuneration as follows:
· Chairman of the Board EUR 36,000
· Members of the Board EUR 18,000
In addition, a meeting fee in the amount of
The Annual General Meeting decided that
The General Meeting approved the authorization for the Board of Directors to accept as pledge and repurchase of
The General Meeting authorized the Board of Directors to decide on the issuance of shares as well as the issuance of options and other special rights entitling to shares referred to in chapter 10 section 1 of the Finnish Companies Act. The number of shares to be issued based on this authorization may not exceed 1,400,314. The Board of Directors is authorized to resolve on all terms and conditions of the issuance of shares and special rights entitling to shares, including the right to derogate from the pre-emptive right of the shareholders. The authorization will be valid until the earlier of the end of the next Annual General Meeting or 18 months from the resolution of the Annual General Meeting.
At its meeting held after the Annual General Meeting, the Board of Directors elected from among its members
Audit Committee:
Seppo Mäkinen
Remuneration Committee:
Seppo Mäkinen (chairman)
Shares and shareholders
The company has one share series with all shares having the same rights. At the end of the review period
Risks and uncertainties
The key risks and uncertainties are described in the company's annual report 2019 which was published on
The COVID-19 coronavirus risk as disclosed in the H1-2020 report has been updated as follows:
COVID-19 coronavirus
The COVID-19 outbreak has turned into a pandemic the length and prolonged effect of which are uncertain.
The company's software segment continues to be largely unaffected due to recurring nature of the business and long-term customer agreements, however, the Devices segment sales have been negatively affected by the pandemic. The medical sector as a whole is concentrated on addressing the immediate pandemic and other supplier meetings and purchases are postponed. This has an effect on the company's ability to sell its devices and increase its customer base especially because face-to-face meetings are market standard for fundus camera sales.
Currently, it seems like the PRC and the APAC have recovered from the pandemic and demand is picking up again in these regions. However,
Other events
On
On
·
· Ingo Ramesohl,
·
The Nomination Board is to prepare proposals on the composition and members of the Board of Directors and their remuneration for the next Annual General Meeting and it will submit its proposal to the Board of Directors
Events after the review period
On
Audit review
This financial report has not been audited by the company's auditors.
For more information, contact
Tel: +46 702 59 57 89
E-mail: lars.lindqvist@optomed.com
Tel.: +358 40 555 1050
E-mail: seppo.kopsala@optomed.com
About
Alternative Performance Measures
Alternative Definition
Performance
Measures
Gross profit Revenue + Other
operating income -
Materials and
services expenses
Gross margin, % Gross profit /
Revenue
EBITDA Operating result
before depreciation,
amortisation and
impairment losses
EBITDA margin, % EBITDA / Revenue
Operating result Profit/loss after
depreciation,
amortisation and
impairment losses
Operating margin, % Operating result /
Revenue
Adjusted operating Operating result
result excluding items
affecting
comparability
Adjusted operating Adjusted operating
margin, % result / Revenue
Adjusted EBITDA EBITDA excluding
items affecting
comparability
Adjusted EBITDA Adjusted EBITDA /
margin % Revenue
Items affecting Material items
comparability outside ordinary
course of business
including
restructuring costs,
net gains or losses
from sale of
business operations
or other non-current
assets, strategic
development
projects, external
advisory costs
related to capital
reorganisation,
impairment charges
on non-current
assets incurred in
connection with
restructurings,
compensation for
damages and
transaction costs
related to business
acquisitions.
Net Debt Interest-bearing
liabilities
(borrowings from
financial
institutions,
government loans and
subordinated loans)
- cash and cash
equivalents (excl.
lease liabilities
according to IFRS
16)
Net Debt / Adjusted Net Debt / Adjusted
EBITDA (LTM), times EBITDA (for the last
twelve months, LTM)
Earnings per share Net result / Number
of outstanding
shares (reflecting
changes in the
number of shares
following the
resolution of the
EGM to split the
shares of the
company with a ratio
of 1:20)
Equity ratio, % Total equity / Total
assets
R&D expenses Employee benefit
expenses for R&D
personnel and other
operational expenses
related to R&D
activities
Organic growth, % Organic growth
refers to revenue
growth excluding (i)
growth attributable
to acquisitions and
divestments; and
(ii) growth
attributable to
fluctuations in
exchange rates. The
various components
in organic growth
are calculated as
follows:Acquisitions
and divestments:
Show how
acquisitions and
divestments
completed during the
relevant period have
affected the
reported revenues.
To estimate the
impact of
acquisitions on
reported revenue,
the revenue from the
contributions of the
acquired units for
the current period
is subtracted from
the total revenue
for the same period.
To estimate the
impact of
divestments on
reported revenue,
the revenue from the
contributions from
the divested units
for the current
period is subtracted
from the total
revenue from the
previous respective
comparison period.
Currency
fluctuations: Shows
how the reported
revenue has been
affected by the
translation of
revenue generated in
other currencies
than the euro (which
is the Group's
accounting currency)
when there are
exchange rate
differences between
the current period
and the
corresponding
comparative period.
Income in currencies
other than euro for
the comparative
period is
recalculated using
the applicable
exchange rate for
the current period
to eliminate the
effects of exchange
rate fluctuations
for the relevant
period.
Reconciliation of Alternative Performance Measures
In thousands of euro Q3/2020 Q3/2019 Q1-Q3/2020 Q1-Q3/2019 2019
Revenue 3,338 3,551 8,969 10,649 14,977
Other operating income 29 -235 117 242 254
Material and services -1,105 -1,281 -2,941 -3,691 -5,287
Gross profit 2,262 2,035 6,146 7,199 9,944
Operating profit/loss -278 -1,109 -2,312 -2,563 -2,596
(EBIT)
Items affecting
comparability
IPO related expenses 0 386 0 904 139
Adjusted EBIT -278 -723 -2,312 -1,659 -2,457
Depreciation, 507 563 1,640 1,678 2,261
amortization and
impairment losses
Adjusted EBITDA 229 -160 -671 19 -196
Consolidated Q3/2020 Q3/2019 Q1-Q3/ Q1-Q3/ 2019
income 2020 2019
statement
In thousands
of euro
Revenue 3,338 3,551 8,969 10,649 14,977
Other 29 -235 117 242 254
operating
income
Materials and -1,105 -1,281 -2,941 -3,691 -5,287
services
Employee -1,484 -1,591 -5,158 -5,156 -7,299
benefit
expenses
Depreciation, -507 -563 -1,640 -1,678 -2,261
amortisation
and Impairment
losses
Other -549 -990 -1,659 -2,928 -2,980
operating
expenses
Operating -278 -1,109 -2,312 -2,563 -2,596
result
Finance income 102 -13 256 4 8
Finance -143 -129 -528 -293 -365
expenses
Net finance -41 -142 -272 -289 -356
expenses
Profit (loss) -432 -1,251 -2,584 -2,852 -2,952
before income
taxes
Income tax 20 -4 59 34 77
expense
Loss for the -412 -1,256 -2,525 -2,817 -2,875
period
Loss for the
period
attributable
to
Owners of the -412 -1,256 -2,525 -2,817 -2,875
parent company
Loss per share
attributable
to owners of
the parent
company
Weighted 13,080,477 8,935,654 13,080,477 8,935,654 8,935,654
average number
of
shares
Basic loss per -0.02 -0.14 -0.19 -0.32 -0.32
share (euro)
Consolidated condensed comprehensive income statement
In thousands of euro Q3/20 Q3/201 Q1 Q1-Q3/2019 2019
20 9 -Q3/20
20
Loss for the period -412 -1,256 -2,525 -2,817 -2,875
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss
Foreign currency translation 59 14 68 18 14
difference
Other comprehensive income, net of 59 14 68 18 14
tax
Total comprehensive income for the -353 -1,242 -2,570 -2,799 -2,862
period
Total comprehensive loss -353 -1,242 -2,570 -2,799 -2,862
attributable to Owners of the
parent company
Consolidated balance sheet
In thousands of euro
ASSETS
Non-current assets
Development costs 5,386 5,218
Customer relationships 1,663 1,829
Technology 763 840
Other intangible assets 484 519
Total intangible assets 12,552 12,662
Tangible assets 347 406
Right-of-use assets 772 1,075
Deferred tax assets 10 8
Total non-current assets 13,681 14,151
Current assets
Inventories 2,721 2,468
Trade and other receivables 3,590 4,125
Cash and cash equivalents 10,899 18,866
Total current assets 17,209 25,459
Total assets 30,890 39,611
In thousands of euro
EQUITY
Share capital 80 80
Share premium 504 504
Reserve for invested non-restricted equity 37,413 37,341
Translation differences 157 89
Retained earnings -15,082 -12,500
Profit (loss) for the financial year -2,525 -2,875
Total equity 20,547 22,637
LIABILITIES
Non-current liabilities
Borrowings from financial institutions 3,257 5,104
Government loans 2,998 2,998
Lease liabilities 471 699
Deferred tax liabilities 559 616
Total Non-current liabilities 7,284 9,416
Current liabilities
Borrowings from financial institutions 0 1,766
Government loans 263 60
Lease liabilities 347 414
Trade and other payables 2,448 5,318
Total current liabilities 3,058 7,557
Total liabilities 10,342 16,973
Total equity and liabilities 30,890 39,611
Consolidated statement of changes in shareholders' equity
Equity
attributable
to
owners of the
parent
company
In thousands Share Share Reserve Translation Retained Total
of euro capital premium for differences earnings
invested
non
-restricted
equity
Balance at 80 504 37,341 89 -15,376 22,637
2020
Comprehensive
income
Loss for the -2,525 -2,525
period
Other
comprehensive
income
Translation 68 68
differences
Total 68 -2,525 -2,456
comprehensive
income for
the period
Share issue
Share options 72 294 366
Total 72 294 366
transactions
with owners
of the
company
Balance at 80 504 37,413 157 -17,607 20,547
September
30, 2020
Equity
attributable
to
owners of the
parent
company
In thousands Share Share Reserve Translation Retained Total
of euro capital premium for differences earnings
invested
non
-restricted
equity
Balance at 18,5 565 18,549 75 -13,656 5,552
2019
Comprehensive
income
Loss for the -2,817 -2,817
financial
year
Other
comprehensive
income
Translation 18 18
differences
Total 18 -2,817 -2,799
comprehensive
income
for the
financial
year
Share issue 3,000 3000
Share options 349 349
Total 3,000 349 3,349
transactions
with owners
of the
company
Balance at 19 565 21549 93 -16,123 6,102
2019
Equity
attributable
to
owners of the
parent
company
In thousands Share Share Reserve Translation Retained Total
of euro capital premium for differences earnings
invested
non
-restricted
equity
Balance at 19 565 18,549 75 -13,656 5,552
2019
Comprehensive
income
Loss for the -2,875 -2,875
financial
year
Other
comprehensive
income
Translation 14 14
differences
Total 14 -2,875 -2,862
comprehensive
income
for the
financial
year
Share issue 61 -61 18,792 694 19,486
Share options - 461 461
Total 61 -61 18,792 1,155 19,947
transactions
with owners
of the
company
Balance at 80 504 37,341 89 -15,376 22,637
2019
Consolidated cash flow statement
In thousands of euro Q3/2020 Q3/201 Q1 Q1 2019
9 -Q3/202 -Q3/20
0 19
Cash flows from operating activities
Loss for the financial year -299 -1,256 -2,525 -2,817 -2,875
Adjustments:
Depreciation, amortisation and 507 563 1,640 1,678 2,261
impairment losses
Finance income and finance expenses 42 135 270 269 356
Other adjustments 56 70 154 326 466
Cash flows before change in net 306 -488 -457 -545 207
working capital
Change in net working capital:
Change in trade and other receivables -657 638 578 -312 -783
(increase (-) / decrease
(+))
Change in inventories 128 -347 -262 -1,212 -1,346
(increase (-) / decrease
(+))
Change in trade and other payables -164 -215 -2,828 489 2,396
(increase (+) / decrease (
-))
Cash flows before finance items -386 -412 -2,969 -1,580 475
Interest paid -19 -64 -58 -147 -202
Other finance expenses paid -129 -55 -476 -119 -136
Interest received 134 0 288 7 24
Net cash from operating activities (A) -400 -530 -3,215 -1,839 161
Cash flows from investing activities
Acquisition of intangible assets -349 -250 -1,007 -836 -1,175
Acquisition of tangible assets -49 -65 -162 -192 -261
Acquisition of subsidiary, net of cash 0 0 0 2 1
acquired
Net cash used in investing activities -398 -314 -1,169 -1,026 -1,434
(B)
Cash flows from financing activities
Proceeds from share subscriptions 72 0 72 3,000 23,000
Share issue transaction costs 0 0 0 0 -4,208
Proceeds from loans and borrowings 4 138 -170 136 176
Repayment of loans and borrowings -60 -84 -3,233 -274 -460
Repayment of lease liabilities -98 -97 -295 -287 -385
Net cash from financing activities (C) -82 -43 -3,626 2,575 18,123
Net cash from (used in) operating, -880 -887 -8,010 -290 16,849
investing and financing activities
(A+B+C)
Net increase (decrease) in cash and -880 -887 -8,010 -290 16,849
cash equivalents
Cash and cash equivalents at beginning 11,742 2,607 18,866 2,000 2,000
of period
Effect of movements in exchange rate 39 1 42 11 17
on cash held
Cash and cash equivalents at end of 10,899 1,721 10,899 1,721 18,866
period
Selected notes
Corporate information and basis of accounting
Corporate information
The Group's parent company,
Basis of accounting
This report has not been prepared in accordance with IAS 34 Interim Financial Reporting. This Interim financial statements do not include all of the information required for a complete set of IAS 34 financial statements: selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group`s financial position and performance since the last annual financial statements.
Reportable segments
Q3/2020
In thousands of euro Devices Software Group admin Total
External revenue 1,537 1,802 3,338
Net operating expenses -604 -472 0 -1,076
Margin 933 1,330 - 2,262
Depreciation and amortisation -352 -155 0 -507
Other expenses -642 -886 -505 -2,033
Operating result -62 289 -505 -278
Finance items 0 0 -41 -41
Loss before tax expense -62 289 -546 -319
Q3/2019
In thousands of euro Devices Software Group admin Total
External revenue 1,863 1,688 3,551
Net operating expenses -1,095 -421 0 -1,517
Margin 768 1,267 - 2,035
Depreciation and amortisation -408 -156 0 -563
Other expenses -923 -840 -817 -2,580
Operating result -562 271 -817 -1,109
Finance items 0 0 -142 -142
Loss before tax expense -562 271 -959 -1,251
Q1-Q3/2020
In thousands of euro Devices Software Group Admin Total
External revenue 3,359 5,610 8,969
Net operating expenses -1,487 -1,336 -2,823
Margin 1,872 4,274 - 6,146
Depreciation and amortisation -1,185 -455 -1,640
Other expenses -2,123 -2,983 -1,711 -6,817
Operating result -1,437 836 -1,711 -2,312
Finance items 0 0 -272 -272
Loss before tax expense -1,437 836 -1,983 -2,584
Q1-Q3/2019
In thousands of euro Devices Software Group Admin Total
External revenue 5,152 5,497 - 10,649
Net operating expenses -2,064 -1,385 0 -3,449
Margin 3,087 4,112 - 7,199
Depreciation and amortisation -1,133 -545 0 -1,678
Other expenses -3,335 -2,922 -1,827 -8,084
Operating result -1,381 646 -1,827 -2,563
Finance items 0 0 -289 -289
Loss before tax expense -1,381 646 -2,116 -2,852
2019 Devices Software Group Admin Group
In thousands of euro
External revenue 7,309 7,668 14,977
Net operating expenses -3,109 -1,924 -5,033
Margin 4,200 5,744 - 9,944
Depreciation and amortisation -1,504 -757 -2,261
Other expenses -4,609 -4,077 -1,593 -10,279
Operating result -1,913 909 -1,593 -2,596
Finance items 0 0 -356 -356
Loss before tax expense -1,913 909 -1,949 -2,952
Financial liabilities
30.9.2020 31.12.2019
In thousands of euro
Non-current financial liabilities
Borrowings from financial institutions 3,257 5,104
Government loans 2,998 2,998
Lease liabilities 471 699
Total 6,726 8,800
Current financial liabilities
Borrowings from financial institutions 0 1,766
Government loans 263 60
Lease liabilities 347 414
Trade payables 579 1,667
Total 1,189 3,907
Total financial liabilities 7,652 12,707
The financial loans have been restructured during the 2020. Financial loans were paid prematurely 3,173 thousand euros. Within next 12 months there will be no amortization for borrowings from financial institutions.
Fair values - financial
liabilities measured at
amortised cost
Optomed considers that the
carrying amounts of the
financial liabilities measured
at amortised cost substantially
equal to their fair values.
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