Mr. Louis Laflamme reports
OPSENS ANNOUNCES THIRD QUARTER FISCAL 2021 RECORD FINANCIAL RESULTS
Opsens Inc. has released its financial results for the third quarter of fiscal 2021, ended May 31, 2021.
Third quarter financial highlights:
Record total revenue of $9.2-million, compared with $6.6-million for the third quarter of fiscal 2020, a 39-per-cent increase;
- Record sales of coronary artery disease products of $6.2-million, compared with $4.4-million for the third quarter of fiscal 2020, a 41-per-cent increase;
- Cash and cash equivalents at $38.8-million as of May 31, 2021 ($10.9-million as of Aug. 31, 2020);
- Opsens awarded three-year contract agreement with Vizient Inc., one of the largest group purchasing organizations (GPO) in the United States, to provide its members with the company's OptoWire;
- Opsens signs an agreement with Cathmedical Cardiovascular SA for the integration of its coronary physiology algorithms into the Picasso hemodynamic system, initially focusing on the Spanish cardiology market where the Picasso has a dominant market share.
The SavvyWire, Opsens's innovative pressure guidewire, for the percutaneous delivery and assessment of aortic valve stenosis (TAVR), is scheduled to be evaluated in a 20-patient study by the end of the summer. This study is one of the last steps before Opsens files for regulatory 510(k) clearance with the United States Food and Drug Administration (FDA);
- Opsens surpasses 150,000 procedures with the OptoWire;
- Opsens Solutions receives advisory and financing support to develop an optical-based fuel monitoring system for aerospace applications, including civil aircrafts with partner.
"We achieved strong financial performance in the third quarter of fiscal 2021, as we continued to build on our positive momentum, with solid double-digit top-line growth," said Louis Laflamme, president and chief executive officer of Opsens. "We are excited by the continued commercial adoption of our proprietary optical solutions in cardiology to address some of the industry's most challenging applications. Our OptoWire solution has surpassed the 150,000-procedure mark and is gaining further traction within the U.S. with record sales of coronary artery disease products. Additionally, we continue to expand on the signing of high-quality contracts with U.S. GPOs. Further, with the closing of our $28.75-million bought deal financing earlier this year, we are accelerating the development of our next-generation TAVR product, including the hiring of key technical, clinical and commercial talent and the conduct of our first in-man study," Mr. Laflamme concluded.
Financial results -- quarter ended May 31, 2021
Total revenue reached $9.2-million for the three-month period ended May 31, 2021, compared with $6.6-million for the same period the previous year. This 39-per-cent growth is mainly the result of an increase in revenue of $1.8-million in the coronary artery disease line of business (fractional flow reserve (FFR) and diastolic pressure ratio (dPR)) and an increase of $600,000 in other medical revenues.
Sales of products in coronary artery disease were $6.2-million in the third quarter of 2021, compared with $4.4-million in the same period in 2020, an increase of 41 per cent. The increase in sales is primarily the result of growth in the European and American markets even though several cardiology laboratories were still operating at reduced levels due to COVID-19.
Sales of optical medical systems, including the company's five-year supply agreement for ventricular assist device sensors, were $2.3-million, an increase of 35 per cent in the third quarter of 2021 compared with $1.7-million in the third quarter of 2020.
Industrial sales increased 40 per cent to $700,000 in the third quarter of 2021, compared with $500,000 in the third quarter of 2020.
Gross margin reached 59 per cent, an increase of 400 basis points for the quarter ended May 31, 2021, from 55 per cent for the quarter ended May 31, 2020. Higher sales volume and the related economies of scale, combined with enhanced productivity, mainly contributed to the improvement.
Operating expenses in the third quarter of fiscal 2021 were $5.6-million, up $1.3-million compared with $4.3-million in the third quarter of 2020. The increase is mostly attributable to additional investments of $600,000 in sales and marketing as activities are accelerating towards pre-COVID levels. Additionally, it invested in the development of its TAVR product.
Net loss was $570,000 in the third quarter of 2021, compared with a net income of $52,000 in the third quarter of 2020. The negative variance of $600,000 is mainly due to an increase of $1.3-million in operating costs, a decrease of $700,000 in other income and a negative variance of foreign exchange of $500,000. This was partially offset by an improvement of $1.8-million in gross margin.
Opsens had cash and cash equivalents of $38.8-million as of May 31, 2021.
Conference call today
Mr. Laflamme, president and chief executive officer, and Robin Villeneuve, chief financial officer, will hold a conference call to discuss the quarter's financial results at 11 a.m. ET today, July 13.
Interested parties can access the conference call by dialling 833-756-0865 or 412-317-5754 or can listen through a live webcast, from the link available in the investors section of the company's website or at investors section of the company's website, 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 in interventional 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 over 150,000 patients in more than 30 countries. It is approved for sale in the United States, the European Union, Japan and Canada.
Opsens is also involved in industrial activities in developing, manufacturing and installing innovative fibre optic sensing solutions for critical applications.
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