Total Revenue up 37% - Medical Sales up 42% - Gross Margin 58%
Fiscal Year 2023 Financial Highlights
- Record consolidated sales of
$48.3 million in FY 2023, an increase of 37%, compared with$35.3 million in FY 2022. - Gross margin improved to 58% in FY 2023, an increase of 747 basis points compared with 50% in FY 2022.
- Coronary Artery Disease sales of
$24.5 million in FY 2023, an increase of 12%, compared with$21.8 million in FY 2022. - Structural Heart sales of
$2.6 million in FY 2023, an increase of$2.5 million , compared with$0.1 million in FY 2022. - Optical Medical Products sales increased by 82% to
$17.4 million in FY 2023, compared with$9.5 million in FY 2022. - Cash and cash equivalents at
$18.1 million as ofAugust 31, 2023 .
Fourth Quarter Fiscal Year 2023 Highlights
- Record consolidated revenues of
$14.2 million , compared with$9.1 million in the fourth quarter of 2022, a 57% increase. - Gross margin improved to 58% in the fourth quarter of 2023, an increase of 962 basis points compared with 48% in the fourth quarter of 2022.
- Coronary Artery Disease sales of
$6.8 million , representing a 20% increase in sales as compared to the fourth quarter of 2022. - Structural Heart sales of
$1.1 million in the fourth quarter of 2023, representing a 38% sequential increase in sales as compared to the third quarter of 2023. - Optical Medical Products sales were
$5.4 million , an increase of 146%, compared with$2.2 million in the fourth quarter of 2022.
Recent Highlights
- On
October 10, 2023 ,OpSens announced it had entered into a definitive arrangement agreement with Haemonetics Corporation whereby Haemonetics Corporation will indirectly acquire all of the issued and outstanding common shares in the capital ofOpSens for$2.90 per share. The transaction is expected to close by the end ofJanuary 2024 , subject to satisfaction of customary closing conditions.
Management Commentary
"We are pleased with the results of the quarter and fiscal year 2023 which reflect a record for quarterly revenues and a strong 37% improvement in year-over-year revenues. We delivered growth in our key medical segment, which includes the OptoWire for Coronary Artery Disease, Optical Medical Products, and the SavvyWire solution for Structural Heart TAVR procedures. The combined growth in medical segment revenue was up 66% compared to the fourth quarter of 2022 and up 42% for FY 2023," said
"The adoption of both OptoWire and SavvyWire through a synergistic, multi-pronged approach which utilizes direct field sales representatives, distribution partners, and group purchasing agreements, has continued during the quarter and has contributed to another record quarter. The roll-out strategy of SavvyWire has continued during the quarter with 38% sequential revenue growth. This, coupled with the continued solid performance of our more established OptoWire product, positions
Segmented Revenues Information
($ in Millions Canadian) | Three-month | Three-month | Financial year | Financial year | |||
Medical segment | |||||||
Coronary Artery Disease | 6.8 | 5.7 | 24.5 | 21.8 | |||
Structural Heart | 1.1 | 0.1 | 2.6 | 0.1 | |||
Optical Medical Products | 5.4 | 2.2 | 17.4 | 9.5 | |||
Other | 0.1 | 0.1 | 0.4 | 0.3 | |||
Total Medical Revenues | 13.4 | 8.1 | 44.9 | 31.7 | |||
Industrial | 0.8 | 1.0 | 3.4 | 3.6 | |||
Total Revenues | 14.2 | 9.1 | 48.3 | 35.3 |
Financial Commentary
Fiscal Year Financial Results - Year Ended
Total revenue was
Coronary Artery Disease
Sales of coronary artery disease products, Fractional Flow Reserve ("FFR") and diastolic pressure ratio ("dPR"), amounted to
Structural Heart
Structural heart sales were
Optical Medical Products
Sales of optical medical products, including the supply agreement with
Industrial
Industrial sales decreased by 4% to
Gross Margin
Gross margin was 58% in FY 2023, compared with 50% in FY 2022, an improvement of 747 basis points. The gross margin increase was driven by favorable product mix, a higher weighting of direct sales to hospitals in
Operating Expenses
Operating expenses for FY 2023 were
Net Loss
Net loss was
Fourth Quarter Financial Results - Three-Month Period Ended
Total revenues were
Coronary Artery Disease
Sales of Coronary Artery Disease products 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 57.9%, an increase of 962 basis points, compared with 48.3% 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 fourth quarter of 2023 were
Net Loss
Net loss for the fourth quarter of fiscal 2023 was
Balance Sheet
Table A
(In thousands of Canadian dollars, | Three-month period ended | Three-month period ended | Financial year ended | Financial year ended | |
$ | $ | $ | $ | ||
Revenues | |||||
Sales | |||||
Medical | 13,281 | 7,948 | 44,512 | 31,427 | |
Industrial | 831 | 981 | 3,422 | 3,577 | |
14,112 | 8,929 | 47,934 | 35,004 | ||
Other | 78 | 123 | 413 | 320 | |
14,190 | 9,052 | 48,347 | 35,324 | ||
Cost of sales | 5,966 | 4,677 | 20,372 | 17,523 | |
Gross margin | 8,224 | 4,375 | 27,975 | 17,801 | |
Gross margin percentage | 58 % | 48 % | 58 % | 50 % | |
Operating expenses | |||||
Administrative | 2,324 | 1,872 | 9,898 | 7,822 | |
Sales and marketing | 4,580 | 4,339 | 19,293 | 12,576 | |
Research and development | 2,839 | 2,244 | 11,308 | 8,358 | |
9,743 | 8,455 | 40,499 | 28,756 | ||
Financial expenses | 53 | 1 | 30 | 312 | |
(Gain) loss on foreign currency translation | (107) | (52) | (429) | 68 | |
Loss before income taxes | (1,466) | (4,029) | (12,125) | (11,335) | |
Current income tax expense | 166 | - | 278 | 43 | |
Net result | (1,632) | (4,029) | (12,403) | (11,378) | |
Basic and diluted net loss per share | (0.01) | (0.04) | (0.11) | (0.11) | |
Table B
CONSOLIDATED BALANCE SHEET HIGHLIGHTS (in thousands of Canadian dollars) | As at | As at |
$ | $ | |
Cash and cash equivalents | 18,105 | 23,816 |
Trade and other receivables | 9,037 | 5,855 |
Inventories | 9,566 | 6,672 |
Total Current Assets | 38,761 | 39,016 |
Property, plant, and equipment | 4,005 | 2,683 |
Intangible assets | 1,676 | 1,786 |
Right-of-use assets | 6,389 | 5,026 |
Total Assets | 50,831 | 48,511 |
Current liabilities | 8,778 | 8,601 |
Long-term debt | 1,323 | 639 |
Lease liabilities | 6,898 | 5,012 |
Total Liabilities | 16,999 | 14,252 |
Shareholders' equity | 33,832 | 34,259 |
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 expected to reach over 400,000 in 2025 and over 600,000 in 2030.
SOURCE
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