Total Revenue up 31% - Medical Sales up 36% - Gross Margin up 780 basis points
Conference call on the results today at
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% increase and a new quarterly record for the third consecutive quarter. - Gross margin improved to 58.8% in the third quarter of 2023, an increase of 780 basis points compared with 51% in the third quarter of 2022.
- Record sales in Coronary Artery Disease of
$6.8 million , representing a 21% sequential increase in sales as compared to the second quarter of 2023. - Structural Heart sales of
$0.8 million in the third quarter of 2023, driven by a 64% sequential increase in sales as compared to the second quarter of 2023. - Sales of Optical Medical Products were
$4.9 million , an increase of 92%, compared with$2.6 million in the third quarter of 2022. - Cash and cash equivalents of
$20.5 million atMay 31, 2023 ($21.9 million at 28 February, 2023).
Management Commentary
"We are pleased with the results of the quarter, which reflect a third consecutive record of quarterly revenues. We delivered growth in all three key categories of our medical segment, including the OptoWire for coronary artery disease, optical medical products, and the SavvyWire solution for structural heart TAVR procedures, which combined to drive 36% growth in revenue," said
"Our commercial sales team continues to increase adoption of both OptoWire and SavvyWire through a synergistic, multi-pronged approach which utilizes direct field sales representatives, distribution partners, and group purchasing agreements, all of which contributed to this record quarter. With a thoughtful and well executed roll out strategy of SavvyWire well underway resulting in 64% sequential product growth during the quarter, coupled with enhanced growth within our more established OptoWire product, I believe we are well positioned to continue growing
Segmented Revenues Information
($ in Millions Canadian) | Three-month | Three-month | Nine-month | Nine-month | |||
Medical segment | |||||||
Coronary Artery Disease | 6.8 | 6.6 | 17.7 | 16.1 | |||
Structural Heart | 0.8 | - | 1.6 | - | |||
Optical Medical Products | 4.9 | 2.6 | 12.0 | 7.3 | |||
Other | - | - | 0.3 | 0.3 | |||
Total Medical Revenues | 12.5 | 9.2 | 31.6 | 23.7 | |||
Industrial | 0.7 | 0.9 | 2.6 | 2.6 | |||
Total Revenues | 13.2 | 10.1 | 34.2 | 26.3 |
Financial Commentary
Consolidated revenues were
Coronary Artery Disease
Sales of coronary artery disease products (Fractional Flow Reserve ("FFR") and diastolic pressure ratio ("dPR")) were
Structural Heart
Structural heart sales were
Optical Medical Products
Sales of optical medical products, including the Company's multi-year supply contract of sensors for ventricular assist devices, were
Industrial
Industrial sales were at
Gross Margin
Gross margin improved to 58.8%, an increase of 780 basis points, compared to 51.0% during the prior year period. The increase was driven by favorable 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
Net Loss
Net loss for the third quarter of fiscal 2023 was
Balance Sheet
Table A
(In thousands of Canadian dollars, | Three-month period ended | Three-month period ended | Nine-month period ended | Nine-month period ended |
$ | $ | $ | $ | |
Revenues | ||||
Sales | ||||
Medical | 12,516 | 9,170 | 31,240 | 23,478 |
Industrial | 681 | 874 | 2,581 | 2,596 |
13,197 | 10,044 | 33,821 | 26,074 | |
Other | (42) | 32 | 336 | 197 |
13,155 | 10,076 | 34,157 | 26,271 | |
Cost of sales | 5,421 | 4,938 | 14,406 | 12,846 |
Gross margin | 7,734 | 5,138 | 19,751 | 13,425 |
Gross margin percentage | 59 % | 51 % | 58 % | 51 % |
Operating expenses | ||||
Administrative | 2,544 | 1,886 | 7,574 | 5,950 |
Sales and marketing | 5,695 | 3,639 | 14,713 | 8,237 |
Research and development | 3,515 | 2,322 | 8,469 | 6,114 |
11,754 | 7,847 | 30,756 | 20,301 | |
Financial expenses (income) | 12 | 75 | (28) | 311 |
Loss (gain) on foreign currency translation | 36 | 63 | (322) | 120 |
Loss before income taxes | (4,068) | (2,847) | (10,655) | (7,307) |
Current income tax expense | 88 | 9 | 116 | 43 |
Net result | (4,156) | (2,856) | (10,771) | (7,350) |
Basic and diluted net loss per share | (0.04) | (0.03) | (0.10) | (0.07) |
Table B
CONSOLIDATED BALANCE SHEET HIGHLIGHTS (in thousands of Canadian dollars) | As at | As at |
$ | $ | |
Cash and cash equivalents | 20,472 | 23,816 |
Trade and other receivables | 7,880 | 5,855 |
Inventories | 11,267 | 6,672 |
Total Current Assets | 41,608 | 39,016 |
Property, plant, and equipment | 3,374 | 2,683 |
Intangible assets | 1,687 | 1,786 |
Right-of-use assets | 7,500 | 5,026 |
Total Assets | 54,169 | 48,511 |
Current liabilities | 9,924 | 8,601 |
Long-term debt | 1,437 | 639 |
Lease liabilities | 7,680 | 5,012 |
Total Liabilities | 19,041 | 14,252 |
Shareholders' equity | 35,128 | 34,259 |
Conference Call Today
Interested parties can access the conference call by dialing (833) 756-0865 or (412) 317-5754 or can listen via a live webcast at https://app.webinar.net/MQX1NGnl0m5. Please register 5 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 at https://opsens.com/investors/events-presentations/.
About
The TAVR procedure is growing rapidly globally, driven by the aging population and recent studies that demonstrate its benefits for a broader array of patients. The global TAVR market is currently estimated at over 300,000 procedures and is expected to reach over 400,000 in 2025 and over 600,000 in 2030.
SOURCE
© Canada Newswire, source