Mr. Louis Laflamme reports

OPSENS REPORTS Q3 2018 RESULTS - QUARTERLY REVENUES ECLIPSE $6.4 M

Opsens Inc. has released its results for the third quarter ended May 31, 2018.

Highlights for the quarter:

• Consolidated revenues reached $6,398,000 for the three-month period compared with $4,892,000 for the same period last year, an increase of $1,506,000 or 31 per cent:
  • Consolidated sales of products totalled $5,651,000 for the three-month period compared with $4.8-million for the same period last year, an increase of $851,000 or 18 per cent.
• Consolidated revenues reached $18,203,000 for the nine-month period compared with $13,446,000 for the same period last year, an increase of $4,757,000 or 35 per cent:
  • Consolidated sales of product sales totalled $16,338,000 for the nine-month period compared with $12,164,000 for the same period last year, an increase of $4,174,000 or 34 per cent.
• U.S. fractional flow reserve (FFR) revenue was up 55 per cent compared with the same period last year.
• Japan's Ministry of Health, Labor and Welfare (MHLW) introduced new regulations requiring assessment of all coronary artery stenosis before treatment.

Implementation of growth strategy

"We are pleased with the growth in FFR product sales, particularly in the United States, where revenue has increased by 55 per cent compared with the same quarter in 2017. The OptoWire is increasingly used in the U.S. market, an excellent opportunity for Opsens. In Japan, supply chain adjustments are now completed and OptoWire orders have accelerated again by the result of the new MHLW measures. The improved prospects for Opsens's FFR activities forecast a healthy growth going forward," said Louis Laflamme, Opsens's president and chief executive officer.

Financial results -- quarter ended May 31, 2018

Opsens's consolidated product sales reached $5,651,000, in the three-month period ended May 31, 2018, compared with $4.8-million for the same period the previous year. This growth is explained by a $715,000 increase in medical revenues and a $136,000 increase in industrial revenue, compared with the same quarter 2017.

In addition, the company recorded non-recurring licence revenues of $747,000 compared with $92,000 for the same period the previous year for a consolidated total of $6,398,000 compared with $4,892,000 in the third quarter of 2017.

Gross margin for the quarter ended May 31, 2018, compared with the same period last year increased from 42 per cent to 56 per cent ($2.05-million for the quarter ended May 31, 2017, to $3,589,000 for the quarter ended May 31, 2018). Excluding the non-recurring licensing revenue, gross margin went from 41 per cent to 50 per cent ($1,958,000 for the quarter ended May 31, 2017, to $2,842,000 for the quarter ended May 31, 2018).

Net loss amounted to $846,000 for the three-month period ended May 31, 2018, compared with a net loss of $1,842,000 for the corresponding period last year, a positive change of $996,000. This change is mainly explained by an increase in the gross margin partially offset by an increase in sales and marketing expenses.

Opsens had a cash position of $11,622,000 as of May 31, 2018 ($12.57-million as of Aug, 31, 2017).

                                               FINANCIAL HIGHLIGHTS
                             (in thousands of dollars, except for information per share)
  
                                                      Three-month period ended        Nine-month period ended 
                                                    May 31, 2018    May 31, 2017    May 31, 2018   May 31, 2017
Revenues
Sales
Medical                                                   $5,314          $4,599         $14,951        $11,105
Industrial                                                   337             201           1,387          1,059
                                                           5,651           4,800          16,338         12,164
Licensing                                                    747              92           1,865          1,282
                                                           6,398           4,892          18,203         13,446
Cost of sales                                              2,809           2,842           8,485          7,951
Gross margin                                               3,589           2,050           9,718          5,495
Administration expenses                                    1,073           1,258           2,743          3,007
Sales and marketing expenses                               2,460           1,938           6,891          5,270
R&D expenses                                                 905             844           2,650          2,395
Financial expenses (revenues)                                 (3)              4             (18)           127
Change (loss) in fair value of embedded derivative             -            (152)            501             80
                                                           4,435           3,892          12,767         10,879
Net (loss) and comprehensive (loss)                         (846)         (1,842)         (3,049)        (5,384)
Net (loss) per share -- basic and diluted                  (0.01)          (0.02)          (0.03)         (0.07)

About Opsens Inc.

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 in developing, manufacturing and installing innovative fibre optic sensing solutions for critical applications.

We seek Safe Harbor.