Mr. Louis Laflamme reports

OPSENS ANNOUNCES A THIRD CONSECUTIVE QUARTER OF RECORD REVENUES FOR THIRD QUARTER FISCAL 2023

Opsens Inc. has released its results for the third quarter of fiscal year 2023, ended May 31, 2023.

Third quarter fiscal 2023 financial highlights:

• Consolidated revenues of $13.2-million, compared with $10.1-million in the third quarter of 2022, a 31-per-cent increase and a new quarterly record for the third consecutive quarter.
• Gross margin improved to 58.8 per cent in the third quarter of 2023, an increase of 780 basis points compared with 51 per cent in the third quarter of 2022.
• Record sales in coronary artery disease of $6.8-million, representing a 21-per-cent sequential increase in sales as compared with the second quarter of 2023.
• Structural heart sales of $800,000 in the third quarter of 2023, driven by a 64-per-cent sequential increase in sales as compared with the second quarter of 2023.
• Sales of optical medical products were $4.9-million, an increase of 92 per cent, compared with $2.6-million in the third quarter of 2022.
• Cash and cash equivalents of $20.5-million at May 31, 2023 ($21.9-million at Feb. 28, 2023).

Management commentary

"We are pleased with the results of the quarter, which reflect a third consecutive record of quarterly revenues. We delivered growth in all three key categories of our medical segment, including the OptoWire for coronary artery disease, optical medical products and the SavvyWire solution for structural heart TAVR procedures, which combined to drive 36-per-cent growth in revenue," said Louis Laflamme, president and chief executive officer of Opsens.

"Our commercial sales team continues to increase adoption of both OptoWire and SavvyWire through a synergistic, multipronged approach which utilizes direct field sales representatives, distribution partners and group purchasing agreements, all of which contributed to this record quarter. With a thoughtful and well-executed rollout strategy of SavvyWire well under way resulting in 64-per-cent sequential product growth during the quarter, coupled with enhanced growth within our more established OptoWire product, I believe we are well positioned to continue growing Opsens in the years to come," Mr. Laflamme concluded.

Financial commentary

Consolidated revenues were $13.2-million in the third quarter of 2023, a 31-per-cent increase, compared with the $10.1-million recorded in the third quarter of 2022.

Coronary artery disease

Sales of coronary artery disease products (fractional flow reserve (FFR) and diastolic pressure ratio (dPR)) were $6.8-million in the third quarter of 2023, compared with $6.6-million in the third quarter of 2022, an increase of 4 per cent. OptoWire sales in the United States contributed to enhanced performance with a 31-per-cent increase. For EMEA (Europe, Middle East, Africa), a market served through distributors, there has been 2-per-cent growth while Asia Pacific, a market also served through distributors, has seen a 14-per-cent decrease due to some headwinds including currency exchange rates.

Structural heart

Structural heart sales were $800,000 in the third quarter of 2023, driven by a 64-per-cent sequential increase in sales as compared with the second quarter of 2023. The company continues to execute its systematic, step-by-step commercialization plan. The company is finalizing plans to move from a controlled market release to a full market release in its last quarter of the fiscal year 2023.

Optical medical products

Sales of optical medical products, including the company's multiyear supply contract of sensors for ventricular assist devices, were $4.9-million in the third quarter of 2023, compared with $2.6-million in the third quarter of 2022, an increase of 92 per cent. The company is seeing increased demand for its sensors with expectations for continued growth in the future.

Industrial

Industrial sales were at $700,000 in the third quarter of 2023, compared with $900,000 in the third quarter of 2022. During the quarter, the company delivered solutions in optical temperature, pressure, strain and other critical parameters for various industries, including aerospace, nuclear and power electronics.

Gross margin

Gross margin improved to 58.8 per cent, an increase of 780 basis points, compared with 51 per cent during the prior-year period. The increase was driven by favourable product mix, a higher weighting of direct sales to hospitals and higher sales volume.

Operating expenses

Operating expenses in the third quarter of 2023 were $11.8-million, compared with $7.8-million in the third quarter of 2022. The $3.9-million increase was primarily due to an increase in sales and marketing activities, including an increase in the company's direct U.S. sales force to enable the launch of SavvyWire. Research and development expenditure increased due to structural heart and coronary artery projects.

Net loss

Net loss for the third quarter of fiscal 2023 was $(4.2-million), or (four cents) per diluted share, compared with a net loss of $(2.9-million), or (three cents) per diluted share in the third quarter of fiscal 2022.

Balance sheet

Opsens had a cash position of $20.5-million, as of May 31, 2023 (Feb. 28, 2023, was $21.9-million).

Conference call today

Mr. Laflamme, president and chief executive officer, and John Hannigan, chief financial officer, will hold a conference call to discuss the quarter's financial results at 11 a.m. (Eastern Time) today, July 13, 2023.

Interested parties can access the conference call by dialling 833-756-0865 or 412-317-5754 or can listen via a live webcast. Please register five to 10 minutes before the beginning of the conference call.

A replay will be available after the call, in the investors section of the company's website.

About Opsens Inc.

Opsens focuses mainly on 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 fibre 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 more than 250,000 patients in more than 30 countries. It is approved for sale in the U.S., the European Union, the United Kingdom, Japan and Canada.