OPSENS ANNOUNCES A THIRD CONSECUTIVE QUARTER OF RECORD REVENUES FOR THIRD QUARTER FISCAL 2023
Total Revenue up 31% - Medical Sales up 36% - Gross Margin up 780 basis points
Conference call on the results today at 11:00 a.m. ET
QUEBEC CITY, July 13, 2023 /CNW/ - OpSens Inc. ("OpSens" or the "Company") (TSX: OPS) (OTCQX: OPSSF), a medical device cardiology-focused company delivering innovative solutions based on its proprietary optical technology, today reported its results for the third quarter of fiscal year 2023, ended May 31, 2023.
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 at May 31, 2023 ($21.9 million at 28 February, 2023).
Management Commentary
"We are pleased with the results of the quarter, which reflect a third consecutive record of quarterly revenues. We delivered growth in all three key categories of our medical segment, including the OptoWire for coronary artery disease, optical medical products, and the SavvyWire solution for structural heart TAVR procedures, which combined to drive 36% growth in revenue," said Louis Laflamme, President and CEO of OpSens.
"Our commercial sales team continues to increase adoption of both OptoWire and SavvyWire through a synergistic, multi-pronged approach which utilizes direct field sales representatives, distribution partners, and group purchasing agreements, all of which contributed to this record quarter. With a thoughtful and well executed roll out strategy of SavvyWire well underway resulting in 64% sequential product growth during the quarter, coupled with enhanced growth within our more established OptoWire product, I believe we are well positioned to continue growing OpSens in the years to come," Mr. Laflamme concluded.
Segmented Revenues Information
($ 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 $13.2 million in the third quarter of 2023, a 31% increase, compared with the $10.1 million recorded in the third quarter of 2022.
Coronary Artery Disease
Sales of coronary artery disease products (Fractional Flow Reserve ("FFR") and diastolic pressure ratio ("dPR")) were $6.8 million in the third quarter of 2023, compared with $6.6 million in the third quarter of 2022, an increase of 4%. OptoWire sales in the U.S. contributed to enhanced performance with a 31% increase. For EMEA, a market served through distributors, there has been 2% growth while Asia Pacific, a market also served through distributors has seen a 14% decrease due to some headwinds including currency exchange rates.
Structural Heart
Structural heart sales were $0.8 million in the third quarter of 2023, driven by a 64% sequential increase in sales as compared with the second quarter of 2023. The Company continues to execute its systematic, step-by-step, commercialization plan. The Company is finalizing plans to move from a controlled market release to a full market release in our last quarter of the fiscal year 2023.
Optical Medical Products
Sales of optical medical products, including the Company's multi-year supply contract of sensors for ventricular assist devices, were $4.9 million in the third quarter of 2023, compared with $2.6 million in the third quarter of 2022, an increase of 92%. The Company is seeing increased demand for its sensors with expectations for continued growth in the future.
Industrial
Industrial sales were at $0.7 million in the third quarter of 2023, compared with $0.9 million in the third quarter of 2022. During the quarter, the Company delivered solutions in optical temperature, pressure, strain, and other critical parameters for various industries, including aerospace, nuclear and power electronics.
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 $11.8 million, compared with $7.8 million in the third quarter of 2022. The $3.9 million increase was primarily due to an increase in Sales and Marketing activities, including an increase in the Company's direct U.S. sales force to enable the launch of SavvyWire. Research and Development expenditure increased due to structural heart and coronary artery projects.
Net Loss
Net loss for the third quarter of fiscal 2023 was $(4.2) million, or $(0.04) per diluted share, compared to a net loss of $(2.9) million, or $(0.03) per diluted share in the third quarter of fiscal 2022.
Balance Sheet
OpSens had a cash position of $20.5 million, as of May 31, 2023 (February 28, 2023, was $21.9 million).
Table A
(In thousands of Canadian dollars, | Three-month period ended May 31, 2023 | Three-month period ended May 31, 2022 | Nine-month period ended May 31, 2023 | Nine-month period ended May 31, 2022 |
$ | $ | $ | $ | |
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 |
May 31, 2023 | Aug 31, 2022 | |
$ | $ | |
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
Louis Laflamme, President and Chief Executive Officer and John Hannigan, Chief Financial Officer, will hold a conference call to discuss the quarter's financial results at 11:00 a.m. (Eastern Time) today, July 13, 2023.
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 OpSens Inc. (www.OpSens.com or www.OpSensmedical.com)
OpSens focuses mainly on 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 fiber 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 more than 250,000 patients in more than 30 countries. It is approved for sale in the U.S., the European Union, the United Kingdom, Japan and Canada.
OpSens has recently received FDA clearance and Health Canada approval to commercialize the SavvyWire for transcatheter aortic valve replacement procedures (TAVR). This unique guidewire is a 3-in-1 solution for stable aortic valve delivery and positioning, continuous accurate hemodynamic measurement during the procedure, and reliable left ventricular pacing without the need for adjunct devices or venous access.
OpSens' SavvyWire is on trend with a minimalist approach to TAVR and advances the procedure, allowing patients to leave the hospital earlier, sometimes the same day.
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.
OpSens is also involved in industrial activities in developing, manufacturing, and installing innovative fiber optic sensing solutions for critical applications.
SOURCE OpSens Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2023/13/c0720.html
