OPTOMED OYJ
January -
- Revenue decreased by 4.4 percent to
EUR 3.3 (3.5) million. -
Devices segment revenue increased by 0.1 percent to
EUR 0.9 (0.9) million. -
Software segment revenue decreased by 5.9 percent to
EUR 2.4 (2.6) million. -
EBITDA and adjusted EBITDA amounted to
EUR -0.6 (-0.5) million corresponding to -26.3 (-14.8) percent of revenue. -
Outlook unchanged:
Optomed expects its full year 2024 revenue to grow compared to 2023. - Optomed Aurora with AEYE-DS AI has successfully received FDA clearance after the review period.
-
Discussions with a prominent eye hospital and private equity fund to establish a joint venture for eye screening services in
China .
Key figures
EUR, thousand | Q1/2024 | Q1/2023 | Change, % | 2023 |
Revenue | 3,327 | 3,478 | -4.4% | 15,100 |
Gross profit * | 2,213 | 2,476 | -10.6% | 10,292 |
Gross margin % * | 66.5% | 71.2% |
| 68.2% |
EBITDA | -648 | -513 | -26.3% | -1,781 |
EBITDA margin *, % | -19.5% | -14.8% |
| -11.8% |
Adjusted EBITDA * | -648 | -513 | -26.3% | -1,470 |
Adjusted EBITDA margin *, % | -19.5% | -14.8% |
| -9.7% |
Operating result (EBIT) | -1,191 | -1,043 | -14.2% | -3,974 |
Operating margin (EBIT) *, % | -35.8% | -30.0% |
| -26.3% |
Adjusted operating result (EBIT) * | -1,191 | -1,043 | -14.2% | -3,663 |
Adjusted operating margin (EBIT margin) *, % | -35.8% | -30.0% |
| -24.3% |
Net profit/ loss | -1,090 | -1,157 | 5.8% | -4,441 |
Earnings per share | -0.06 | -0.08 | 15.8% | -0.27 |
Cash flow from operating activities | -515 | -440 | -17.1% | -615 |
Net Debt | -2,585 | -2,136 | -21.0% | -3,768 |
Net debt/ EBITDA (LTM) * | 1.3 | 1.4 |
| 2.1 |
Net debt/ Adjusted EBITDA (LTM) * | 1.6 | 1.4 |
| 2.6 |
Equity ratio * | 69.5% | 64.7% |
| 70.0% |
R&D expenses personnel | 299 | 283 | 5.6% | 1,280 |
R&D expenses other costs | 144 | 163 | -11.7% | 644 |
Total R&D expenses | 443 | 446 | -0.7% | 1,924 |
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
CEO Review
I am pleased to announce that Optomed Aurora, equipped with AEYE-DS AI technology, has received FDA clearance, a pivotal achievement in our company's history. This approval marks the introduction of the first handheld AI fundus camera for immediate detection of diabetic retinopathy in the
Turning to our financial performance for the first quarter, while we fell slightly short of our expectations, particularly in the software segment, our full-year outlook remains positive. Notably, we received promising customer orders from
Additionally, we successfully halted the decline in our OEM business and resumed our growth trajectory. Despite facing challenges, our team's dedication and strategic execution have yielded excellent outcome as two of our main strategic goals were achieved. Additionally, we are delighted to share that we have emerged victorious in a public tender within the software segment which we have discussed in our previous reports, a result to the quality and competitiveness of our offerings.
As we look ahead, we are energized by this momentum and remain committed to delivering value to our shareholders. We sincerely thank you for your continued support and confidence in
CEO
Outlook 2024
Telephone conference
A telephone conference for analysts, investors and media will be arranged on
The participants are requested to register for the call-in advance by email to sakari.knuutti@optomed.com.
Please see the call-in numbers below:
FI +358 9 856 263 00
SE +46 8 505 218 52
US +1 646 838 1719
FR +33 1 70 99 53 92
The conference id is 398 980 747 974#
Please note that by dialing into the conference call, the participant agrees that personal information such as name and company name will be collected.
Group performance
January -
In January -
In January -
EBITDA decreased and it was
EBIT decreased and it was
In January -
Cash flow and financial position
January -
In January -
Consolidated cash and cash equivalents at the end of the period amounted to
Net working capital was
Devices segment
The Devices segment develops, commercializes, and manufactures easy-to-use, and affordable handheld fundus cameras, that are suitable for any clinic for screening of various eye diseases, such as diabetic retinopathy, glaucoma and AMD (Age Related Macular Degeneration).
EUR, thousand | Q1/2024 | Q1/2023 | Change, % | 2023 |
Revenue | 890 | 888 | 0.1% | 5,009 |
Gross profit * | 516 | 559 | -7.6% | 2,947 |
Gross margin % * | 58.0% | 62.9% |
| 58.8% |
EBITDA | -361 | -426 | 15.3% | -1,264 |
EBITDA margin *, % | -40.5% | -47.9% |
| -25.2% |
Operating result (EBIT) | -705 | -779 | 9.5% | -2,707 |
Operating margin (EBIT) *, % | -79.2% | -87.7% |
| -54.0% |
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
January -
In January -
The gross margin was 58.0 (62.9) percent. During the quarter, the Company sold an amount of Smartscope Pros which had a slight negative effect on the gross margin.
EBITDA was
Software segment
The Software segment develops and commercializes screening software for diabetic retinopathy and cancer screening for healthcare organizations. The segment also distributes off-the-shelf products from selected partners to supplement its own solutions and expertise and provides software consultation to support the Devices segment screening solution projects.
EUR, thousand | Q1/2024 | Q1/2023 | Change, % | 2023 |
Revenue | 2,437 | 2,590 | -5.9% | 10,091 |
Gross profit * | 1,697 | 1,917 | -11.5% | 7,346 |
Gross margin % * | 69.6% | 74.0% |
| 72.8% |
EBITDA | 526 | 790 | -33.4% | 2,629 |
EBITDA margin *, % | 21.6% | 30.5% |
| 26.1% |
Operating result (EBIT) | 329 | 615 | -46.5% | 1,889 |
Operating margin (EBIT) *, % | 13.5% | 23.8% |
| 18.7% |
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
January -
In January -
Gross margin decreased and was 69.6 (74.0) percent. EBITDA was
Group-wide expenses
Group-wide expenses relate to functions supporting the entire group such as treasury, group accounting, marketing, legal, HR, and IT.
January -
Group-wide operating expenses amounted to
Personnel
Number of personnel at the end of the reporting period.
| 3/2024 | 3/2023 | 12/2023 |
Devices | 51 | 48 | 47 |
Software | 47 | 45 | 47 |
Group common | 16 | 22 | 20 |
Total | 114 | 115 | 114 |
Corporate Governance
Annual General Meeting
The invitation and other material is available at:
https://www.optomed.com/investors/annual-general-meeting-2024/
Shares and shareholders
The Company has one share series with all shares having the same rights. At the end of the review period
Risks and uncertainties
The key risks and uncertainties are described in the company's Annual Report 2023 which was published on
Audit review
This financial report has not been audited by the company's auditors.
Financial reporting in 2024
8 August 2024 Half-Year Financial Report for 1 January -30 June 2024 7 November 2024 Interim Report for 1 January -30 September 2024
For more information, contact
E-mail: sakari.knuutti@optomed.com
E-mail: juho.himberg@optomed.com
About
www.optomed.com
Alternative Performance Measures
Alternative Performance Measures | Definition |
Gross profit | Revenue + Other operating income - Materials and services expenses |
Gross margin, % | Gross profit / Revenue |
EBITDA | Operating result before depreciation, amortization and impairment losses |
EBITDA margin, % | EBITDA / Revenue |
Operating result | Profit/loss after depreciation, amortization and impairment losses |
Operating margin, % | Operating result / Revenue |
Adjusted operating result | Operating result excluding items affecting comparability |
Adjusted operating margin, % | Adjusted operating result / Revenue |
Adjusted EBITDA | EBITDA excluding items affecting comparability |
Adjusted EBITDA margin, % | Adjusted EBITDA / Revenue |
Items affecting comparability | Material items outside ordinary course of business including restructuring costs, net gains or losses from sale of business operations or other non-current assets, strategic development projects, external advisory costs related to capital reorganisation, impairment charges on non-current assets incurred in connection with restructurings, compensation for damages and transaction costs related to business acquisitions. |
Net Debt | Interest-bearing liabilities (borrowings from financial institutions, government loans and subordinated loans) - cash and cash equivalents (excl. lease liabilities according to IFRS 16) |
Net Debt / EBITDA (LTM), times | Net Debt / EBITDA (for the last twelve months, LTM) |
Net Debt / Adjusted EBITDA (LTM), times | Net Debt / Adjusted EBITDA (for the last twelve months, LTM) |
Earnings per share | Net result / Weighted average number of outstanding shares |
Equity ratio, % | Total equity / Total assets |
R&D expenses | Employee benefit expenses for R&D personnel and other operational expenses related to R&D activities |
Reconciliation of Alternative Performance Measures
In thousand of Euro | Q1/2024 | Q1/2023 | 2023 |
Revenue | 3,327 | 3,478 | 15,100 |
Other operating income | 1 | 0 | 49 |
Material and services | -1,114 | -1,002 | -4,857 |
Gross profit | 2,213 | 2,476 | 10,292 |
Operating result (EBIT) | -1,191 | -1,043 | -3,974 |
Items affecting comparability |
|
|
|
Specific credit loss percent change from 30 to 50 % | 0 | 0 | 311 |
Adjusted EBIT | -1,191 | -1,043 | -3,663 |
Depreciation, amortization and impairment losses | 543 | 530 | 2,193 |
Adjusted EBITDA | -648 | -513 | -1,470 |
Consolidated income statement
In thousands of euro | Q1/2024 | Q1/2023 | 2023 |
Revenue | 3,327 | 3,478 | 15,100 |
Other operating income | 1 | 0 | 49 |
Materials and services | -1,114 | -1,002 | -4,857 |
Employee benefit expenses | -2,127 | -2,191 | -8,699 |
Depreciation, amortization and Impairment losses | -543 | -530 | -2,193 |
Other operating expenses | -734 | -798 | -3,374 |
Operating result | -1,191 | -1,043 | -3,974 |
|
|
|
|
Finance income | 211 | 68 | 479 |
Finance expenses | -118 | -202 | -1,024 |
Net finance expenses | 94 | -134 | -545 |
|
|
|
|
Profit (loss) before income taxes | -1,098 | -1,177 | -4,519 |
|
|
|
|
Income tax expense | 7 | 20 | 79 |
|
|
|
|
|
|
|
|
Loss for the period | -1,090 | -1,157 | -4,441 |
|
|
|
|
Loss for the period attributable to |
|
|
|
Owners of the parent company | -1,090 | -1,157 | -4,441 |
Weighted average number of shares | 17,108,667 | 15,284,687 | 16,706,508 |
Basic loss per share (euro) | -0.06 | -0.08 | -0.27 |
Consolidated condensed comprehensive income statement
In thousands of euro | Q1/2024 | Q1/2023 | 2023 |
Loss for the period | -1,090 | -1,157 | -4,441 |
Other comprehensive income |
|
|
|
Foreign currency translation difference | -80 | 78 | 283 |
Other comprehensive income, net of tax | -80 | 78 | 283 |
Total comprehensive loss attributable to Owners of the parent company | -1,170 | -1,079
| -4,157 |
Consolidated balance sheet
In thousands of euro | |||
ASSETS |
|
|
|
Non-current assets |
|
|
|
4,256 | 4,256 | 4,256 | |
Development costs | 7,996 | 6,849 | 7,731 |
Customer relationships | 887 | 1,109 | 942 |
Technology | 407 | 509 | 433 |
Other intangible assets | 386 | 374 | 384 |
Total intangible assets | 13,932 | 13,096 | 13,746 |
Tangible assets | 652 | 793 | 710 |
Right-of-use assets | 1,341 | 1,353 | 1,472 |
Deferred tax assets | 11 | 16 | 23 |
Total non-current assets | 15,936 | 15,258 | 15,951 |
Current assets |
|
|
|
Inventories | 2,777 | 3,071 | 2,820 |
Trade and other receivables | 3,259 | 4,324 | 3,190 |
Cash and cash equivalents | 5,706 | 7,179 | 7,118 |
Total current assets | 11,742 | 14,574 | 13,128 |
|
|
|
|
Total assets | 27,678 | 29,832 | 29,079 |
In thousands of euro | |||
EQUITY |
|
|
|
Share capital | 80 | 80 | 80 |
Share premium | 504 | 504 | 504 |
Reserve for invested non-restricted equity | 50,936 | 46,900 | 50,936 |
Translation differences | 255 | 129 | 334 |
Retained earnings | -31,460 | -27,149 | -27,052 |
Profit (loss) for the financial year | -1,090 | -1,157 | -4,441 |
Total equity | 19,223 | 19,306 | 20,361 |
LIABILITIES |
|
|
|
Non-current liabilities |
|
|
|
Borrowings from financial institutions | 1,386 | 3,182 | 1,651 |
Government loans | 681 | 874 | 713 |
Lease liabilities | 870 | 876 | 991 |
Deferred tax liabilities | 291 | 368 | 310 |
Total Non-current liabilities | 3,228 | 5,300 | 3,665 |
|
|
|
|
Current liabilities |
|
|
|
Borrowings from financial institutions | 860 | 794 | 794 |
Government loans | 193 | 193 | 193 |
Lease liabilities | 501 | 502 | 516 |
Trade and other payables | 3,672 | 3,737 | 3,550 |
Total current liabilities | 5,227 | 5,226 | 5,052 |
|
|
|
|
Total liabilities | 8,455 | 10,526 | 8,718 |
|
|
|
|
Total equity and liabilities | 27,678 | 29,832 | 29,079 |
Consolidated statement of changes in shareholders' equity
Equity attributable to owners of the parent company
In thousands of euro | Share capital | Share premium | Reserve for invested non-restricted equity | Translation differences | Retained earnings | Total |
|
|
|
|
|
|
|
Balance at | 80 | 504 | 50,936 | 334 | -31,493 | 20,361 |
Comprehensive income |
|
|
|
|
|
|
Loss for the period |
|
|
|
| -1,090 | -1,090 |
Other comprehensive income |
|
|
|
|
|
|
Translation differences |
|
|
| -80 |
| -80 |
Total comprehensive income for the period |
|
|
| -80 | -1,090 | -1,170 |
Share issue |
|
|
|
|
|
|
Share based payments |
|
|
|
|
|
|
Share options |
|
|
|
| 32 | 32 |
Total transactions with owners of the company |
|
|
|
| 32 | 32 |
|
|
|
|
|
|
|
Balance at | 80 | 504 | 50,936 | 255 | -32,551 | 19,223 |
Equity attributable to owners of the parent company
In thousands of euro | Share capital | Share premium | Reserve for invested non-restricted equity | Translation differences | Retained earnings | Total |
|
|
|
|
|
|
|
Balance at | 80 | 504 | 46,896 | 51 | -27,189 | 20,342 |
Comprehensive income |
|
|
|
|
|
|
Loss for the period |
|
|
|
| -1,157 | -1,157 |
Other comprehensive income |
|
|
|
|
|
|
Translation differences |
|
|
| 78 |
| 78 |
Total comprehensive income for the period |
|
|
| 78 | -1,157 | -1,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share options |
|
| 4 |
| 40 | 43 |
Total transactions with owners of the company |
|
| 4 |
| 40 | 43 |
|
|
|
|
|
|
|
Balance at | 80 | 504 | 46,900 | 129 | -28,307 | 19,306 |
Equity attributable to owners of the parent company
In thousands of euro | Share capital | Share premium | Reserve for invested non-restricted equity | Translation differences | Retained earnings | Total |
|
|
|
|
|
|
|
Balance at | 80 | 504 | 46,896 | 51 | -27,189 | 20,342 |
Comprehensive income |
|
|
|
|
|
|
Loss for the period |
|
|
|
| -4,441 | -4,441 |
Other comprehensive income |
|
|
|
|
|
|
Translation differences |
|
|
| 283 |
| 283 |
Total comprehensive income for the period |
|
|
| 283 | -4,441 | -4,157 |
Share issue |
|
| 3,973 |
|
| 3,973 |
Share based payments |
|
| 48 |
|
| 48 |
Share options |
|
| 19 |
| 137 | 156 |
Total transactions with owners of the company |
|
| 4,039 |
| 137 | 4,176 |
|
|
|
|
|
|
|
Balance at | 80 | 504 | 50,936 | 334 | -31,493 | 20,361 |
Consolidated cash flow statement
In thousands of euro | Q1/2024 | Q1/2023 | 2023 |
Cash flows from operating activities |
|
|
|
Loss for the financial year | -1,090 | -1,157 | -4,441 |
Adjustments: |
|
|
|
Depreciation, amortization and impairment losses | 543 | 530 | 2,193 |
Finance income and finance expenses | -47 | 167 | 468 |
Other adjustments | -2 | -11 | 289 |
Cash flows before change in net working capital | -596 | -471 | -1,491 |
Change in net working capital: |
|
|
|
Change in trade and other receivables (increase (-) / decrease (+)) | -34 | 324 | 1,094 |
Change in inventories (increase (-) / decrease (+)) | 54 | -95 | 118 |
Change in trade and other payables (increase (+) / decrease (-))
| 107 | -171 | -75 |
Cash flows before finance items | -468 | -413 | -354 |
Interest paid | -29 | -17 | -169 |
Other finance expenses paid | -32 | -10 | -93 |
Interest received | 14 | 0 | 0 |
Net cash from operating activities (A) | -515 | -440 | -615 |
Cash flows from investing activities |
|
|
|
Capitalization of development expenses | -509 | -518 | -2,199 |
Acquisition of tangible assets | -25 | -27 | -213 |
Net cash used in investing activities (B) | -534 | -545 | -2,412 |
Cash flows from financing activities |
|
|
|
Proceeds from share subscriptions | 0 | 4 | 4,310 |
Share issue transaction costs | 0 | 0 | -318 |
Repayment of loans and borrowings | -230 | -230 | -1,921 |
Repayment of lease liabilities | -136 | -122 | -462 |
Net cash from financing activities (C) | -366 | -349 | 1,609 |
Net cash from (used in) operating, investing and financing activities (A+B+C) | -1,415 | -1,333 | -1,419 |
|
|
|
|
Cash and cash equivalents at beginning of period | 7,118 | 8,524 | 8,524 |
Effect of movements in exchange rate on cash held | 3 | -12 | 13 |
Cash and cash equivalents at end of period | 5,706 | 7,179 | 7,118 |
Selected notes
Corporate information and basis of accounting
Corporate information
The Group's parent company,
Basis of accounting
These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with Group`s last annual consolidated financial statements as at and for the year ended
All presented figures have been rounded so the sum of the individual figures may differ from the presented total figure.
Financial ratios have been calculated using exact figures.
Reportable segments
Q1/2024
In thousands of euro | Devices | Software | Group Admin | Total |
External revenue | 890 | 2,437 | 0 | 3,327 |
Net operating expenses | -374 | -740 | 1 | -1,113 |
Margin | 516 | 1,697 | 1 | 2,213 |
Depreciation and amortization | -344 | -197 | -3 | -543 |
Other expenses | -877 | -1,171 | -814 | -2,861 |
Operating result | -705 | 329 | -816 | -1,191 |
Finance items | 0 | 0 | 94 | 94 |
Loss before tax expense | -705 | 329 | -723 | -1,098 |
Q1/2023
In thousands of euro | Devices | Software | Group Admin | Total |
External revenue | 888 | 2,590 | 0 | 3,478 |
Net operating expenses | -330 | -673 | 0 | -1,002 |
Margin | 559 | 1,917 | 0 | 2,476 |
Depreciation and amortization | -353 | -175 | -2 | -530 |
Other expenses | -984 | -1,127 | -877 | -2,989 |
Operating result | -779 | 615 | -879 | -1,043 |
Finance items | 0 | 0 | -134 | -134 |
Loss before tax expense | -779 | 615 | -1,014 | -1,177 |
2023
In thousands of euro | Devices | Software | Group Admin | Total |
External revenue | 5,009 | 10,091 | 0 | 15,100 |
Net operating expenses | -2,062 | -2,745 | 0 | -4,807 |
Margin | 2,947 | 7,346 | 0 | 10,292 |
Depreciation and amortization | -1,444 | -740 | -9 | -2,193 |
Other expenses | -4,210 | -4,717 | -3,146 | -12,074 |
Operating result | -2,707 | 1,889 | -3,155 | -3,974 |
Finance items | 0 | 0 | -545 | -545 |
Loss before tax expense | -2,707 | 1,889 | -3,701 | -4,519 |
Other operating income
In thousands of euro | Q1/2024 | Q1/2023 | 2023 |
Other operating income | 1 | 0 | 49 |
Total | 1 | 0 | 49 |
Other operating expenses
Other operating expenses | Q1/2024 | Q1/2023 | 2023 |
Sales and marketing | -95 | -147 | -635 |
Research and development | -79 | -90 | -230 |
General and administration | -561 | -562 | -2,509 |
Total operating expenses | -734 | -798 | -3,374 |
Other operating expenses also comprise changes in expected credit losses and realized credit losses.
Financial liabilities
In thousands of euro | |||
Non-current financial liabilities |
|
|
|
Borrowings from financial institutions | 1,386 | 3,182 | 1,651 |
Government loans | 681 | 874 | 713 |
Lease liabilities | 870 | 876 | 991 |
Total | 2,937 | 4,932 | 3,355 |
|
|
|
|
Current financial liabilities |
|
|
|
Borrowings from financial institutions | 860 | 794 | 794 |
Government loans | 193 | 193 | 193 |
Lease liabilities | 501 | 502 | 516 |
Trade payables | 1,102 | 758 | 782 |
Total | 2,656 | 2,247 | 2,285 |
|
|
|
|
Total financial liabilities | 5,594 | 7,179 | 5,640 |
Fair values - financial liabilities measured at amortized cost.
Exposure to credit risk and loss allowance
In thousands of euro | Gross carrying amount
| Weighted av. loss rate% | Loss allowance |
At |
|
|
|
Current (not past due) | 1,698 | 0.50% | 8 |
Past due |
|
|
|
1-30 days | 44 | 1.50% | 1 |
31-60 days | -8 | 4% | 0 |
61-90 days | 6 | 9% | 1 |
More than 90 days past due | 67 | 12% | 8 |
Specific loss allowance | 1,541 | 50% | 770 |
Total | 3,347 |
| 788 |
In thousands of euro | Gross carrying amount
| Weighted av. loss rate% | Loss allowance |
|
|
|
|
At |
|
|
|
Current (not past due) | 1,839 | 0.5% | 9 |
Past due |
|
|
|
1-30 days | 83 | 1.5% | 1 |
31-60 days | 33 | 4% | 1 |
61-90 days | 255 | 9% | 23 |
More than 90 days past due | 5 | 12% | 1 |
Specific loss allowance | 1,810 | 30% | 543 |
Total | 4,024 |
| 578 |
In thousands of euro | Gross carrying amount
| Weighted av. loss rate% | Loss allowance |
At |
|
|
|
Current (not past due) | 1,516 | 0.50% | 8 |
Past due |
|
|
|
1-30 days | 51 | 1.50% | 1 |
31-60 days | 6 | 4% | 0 |
61-90 days | 10 | 9% | 1 |
More than 90 days past due | 277 | 12% | 33 |
Specific loss allowance | 1,534 | 50% | 767 |
Total | 3,392 |
| 809 |
Events after the review period
On
On
https://news.cision.com/optomed-oyj/r/optomed-plc--interim-report--january---march-2024,c3974503
https://mb.cision.com/Main/18875/3974503/2781921.pdf
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