Mr. Louis Laflamme reports
OPSENS ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2020 FINANCIAL RESULTS
Opsens Inc. has released its results for the fourth quarter and fiscal year 2020 ended Aug. 31, 2020.
Sales of product at $29.5-million in FY 2020 compared with prior FY 2019;
Delivered Q4 2020 a $2.2-million improvement in profitability compared with Q4 2019;
- The company ended fourth quarter with a cash balance of $10.9-million compared with $10-million as of May 31, 2020.
- Awarded three-year contract with major American group purchasing organization to provide access to the OptoWire to its members across the United States;
Progress in the development of a guidewire for transcatheter aortic valve replacement (TAVI or TAVR) procedures.
"I am pleased with the way the company is successfully navigating the COVID-19 pandemic," said Louis Laflamme, president and chief executive officer of Opsens. "Despite the temporary closure of several cardiology laboratories, we continued to achieve progress in our commercial activities, including the signing of our first GPO contract to further increase our U.S. coronary artery stenosis measurement business.
"As we look ahead to fiscal 2021, we are cautiously optimistic about continued improvement in access to our commercial customers as hospital protocols for managing the pandemic are being implemented. In addition to continued traction in our currently commercialized products, we are accelerating the development of our new guidewire for TAVR procedures, a $4-billion global market which is growing in excess of 40 per cent per year.
"Our continued progress over the past few years to create, manufacture and deliver world-class products, that contribute to health through our expertise in innovative medical products was highlighted during the last quarter. I congratulate the Opsens team for their determination to provide customers with continued access to our technology under these unusual circumstances," concluded Mr. Laflamme.
Financial results -- year ended Aug. 31, 2020
Sales of product were stable at $29.5-million in fiscal 2020 compared with fiscal 2019.
Sales of products for the measurement of coronary artery stenosis (Fractional Flow Reserve (FFR) and diastolic pressure ratio (dPR)) were $18.7-million in FY 2020 compared with $20-million in FY 2019. The $1.3-million decrease in OptoWire sales was primarily related to the temporary closure of several cardiology laboratories brought on by COVID-19.
Sales of optical medical systems, including the company's partnership for ventricular assist device sensors, were $8.3-million in FY 2020 compared with $7-million in FY 2019.
Operating expenses in fiscal 2020 were $19.3-million compared with $20.5-million in fiscal 2019. The improvement in operating expenses is attributable to savings on sales and marketing expenses offset by continued investment in research and development.
Net loss was $2.6-million during fiscal 2020 compared with a net loss of $2-million in fiscal 2019. This variation is mainly explained by a decrease of $3.3-million in non-recurring licensing revenue offset by a decrease in sales and marketing expenses and by a grant of $1.7-million from the Canadian government.
EBITDAO1 was $100,000 in fiscal 2020 compared with $400,000 in fiscal 2019.
Opsens had a cash position of $10.9-million as of Aug. 31, 2020.
Financial results -- three-month period ended Aug. 31, 2020
Total revenue was $7.6-million in the fourth quarter of 2020 compared with $7.9-million in the fourth quarter of 2019.
Sales of products for the measurement of coronary artery stenosis (FFR and dPR) were $4.8-million in Q4 2020 compared with $5.3-million in Q4 2019. The $500,000 decrease in OptoWire sales was primarily related to the temporary closure of several cardiology laboratories brought on by COVID-19.
Sales of optical medical systems including the company's partnership for ventricular assist device sensors were $2.2-million in Q4 2020 compared with $1.8-million in Q4 2019.
Operating expenses in the fourth quarter of 2020 were $3.8-million compared with $5.5-million in the fourth quarter of 2019. The improvement in operating expenses is attributable to savings on sales and marketing expenses.
Net income was $600,000 during the fourth quarter of 2020 compared with a net loss of $1.6-million in the fourth quarter of 2019. The $2.2-million improvement in net earnings is the result of a reduction in sales and marketing expenses and the recognition of a grant of $900,000 from the Canadian government.
EBITDAO1 was $1.4-million in the fourth quarter of 2020 compared with a loss of $1.1-million in the fourth quarter of 2019.
CONSOLIDATED STATEMENT OF RESULTS
(In thousands of Canadian dollars, except for information per share)
For the year ended For the year ended
Aug. 31, 2020 Aug. 31, 2019*
Medical 26,996 27,032
Industrial 2,457 2,418
Licensing - 3,302
Cost of sales 13,834 14,037
Gross margin 15,619 18,715
Gross margin (%) 53% 57%
Administration 5,041 4,593
Sales and marketing 8,780 11,116
Research and development 5,441 4,801
Other income (1,683) -
Financial expenses 684 157
Net (loss) and comprehensive (loss) (2,644) (1,952)
Net (loss) per share -- basic and diluted (0.03) (0.02)
*Comparative figures have not been adjusted to
reflect the adoption of IFRS 16 --
Leases as set out in the accounting policy.
Reconciliation of net earnings (loss) to EBITDAO
The earnings before interest, taxes, depreciation, amortization and stock-based compensation costs (EBITDAO) has no normalized sense prescribed by IFRS. It is not very probable that this measure is comparable with measures of the same type presented by other issuers. EBITDAO is defined by the company as the addition of net loss, financial expenses (income), depreciation, and amortisation and stock-based compensation costs. The company uses EBITDAO for the purposes of evaluating its historical and prospective financial performance. This measure also helps the company to plan and forecast for future periods as well as to make operational and strategic decisions. The company believes that providing this information to investors, in addition to IFRS measures, allows them to see the company's results through the eyes of management, and to better understand its historical and future financial performance.
Opsens focuses mainly on coronary physiology products in interventional cardiology. Opsens offers an advanced optical-based pressure guide wire 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 guide wire designed to provide the lowest drift in the industry and excellent lesions access. The OptoWire has been used in the diagnosis and treatment of over 100,000 patients in more than 30 countries. It is approved for sale in the United States, European Union, Japan and Canada.
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