Opsens - Announces Q1 2020 Results

QUEBEC CITY, Jan. 13, 2020 /CNW Telbec/ - Opsens Inc. ("Opsens" or the "Company") (TSX: OPS) (OTCQX: OPSSF) today reported its results for the first quarter of 2020.

Highlights

    --  Consolidated product sales totaled $7.0 M in the first quarter of 2020
        compared with $6.8 M in the corresponding period in 2019, an increase of
        3%;
    --  Coronary physiology (Fractional Flow Reserve ("FFR") and Diastolic
        Pressure Ratio ("dPR")) revenues totaled $4.3 M for the first three
        months of fiscal 2020 compared with $4.7 M for the same period last
        year, a decrease of 9%;
        --  Coronary physiology revenues increased by 72% in the United States,
            Canada and Europe markets combined, compared with the same quarter
            in 2019. The increase was offset by a reduction in revenues in Japan
            for the same period;
        --  U.S. FFR revenue growth of 26% over prior year and FDA clearance for
            Opsens' dPR in the United States allows the company to compete in
            all intracoronary physiological measurement procedures;
    --  Announced initial development program to expand core fiber optic and
        guidewire technology into high-growth, high-value structural heart
        market.

Growth strategy

Coronary physiology sales, excluding Japan, increased by 72% from the previous year. "Q1 results reflect continued positive momentum in some of our key growth markets, although this growth was offset by an anticipated slower start to the year in Japan," said Louis Laflamme, President and CEO of Opsens. "We expect revenues in Japan to reaccelerate in the second half of fiscal 2020. Recent FDA approval of our dPR algorithm positions us for enhanced market share growth in the United States over the coming months and quarters," Mr. Laflamme concluded.

Financial Results - Quarter Ended November 30, 2019

Consolidated revenues reached $7.0 M for the three-month period ended November 30, 2019 compared with $9.1 M for the same period the previous year. This decrease is mainly due to the absence of non-recurring licensing revenues in 2020 compared with $2.3 M in the first quarter of 2019.

Opsens product sales reached $7.0 M in the first quarter ended November 30, 2019 compared with $6.8 M for the comparative period of the previous year. Coronary physiology revenues reached $4.3 M in the three-month period ended November 30, 2019 compared with $4.7 M for the comparative period of the previous year. This decrease is explained by a $1.6 M decrease in revenues in Japan primarily due to the anticipated transition from the OptoWire II to the OptoWire III. Lower revenues from Japan were partially offset by a $1.2 M increase in revenues in the United States, Europe and Canada. Other medical income reached $2.2 M for the first quarter ended November 30, 2019 compared with $1.5 M for the same period the previous year.

Gross margin, excluding non-recurring licensing revenues, increased from 49% to 56% for the quarter ended November 30, 2019. This increase is the result of the optimization of coronary physiology production activities as well as the increase in other medical income.

Net loss reached $1.9 M for the quarter ended November 30, 2019, compared with a net profit of $1.1 M for the corresponding period last year. The absence of non-recurring licensing revenues and an increase in administration, sales, marketing and R&D expenses, partially offset by an increase in gross profit, explain the negative variation.

Opsens had a cash position of $13.8 M as of November 30, 2019 ($14.9 M as of August 31, 2019).


     (unaudited -
      in thousands
      of Canadian
      dollars,
      except for
      information
      per share)                  
       
           Three-month     
       
           Three-month

                                  
       
           period ended    
       
           period ended

                                
       
       November 30, 2019   
       
       November 30, 2018



                                               
            $                  
            $



                Revenues


     Sales


            
            Medical                          6,461                        6,207


            
            Industrial                         528                          594



     Product sales                                  6,989                        6,801


     Licensing                                                                  2,302



                                                    6,989                        9,103


     Cost of sales                                  3,079                        3,462



                Gross Margin                        3,910                        5,641


                Gross Margin
                 (%)                                  56%                         62%




                Expenses
                 (revenues)


      Administrative
      expenses                                      1,475                        1,112


     Sales and
      marketing
      expenses                                      2,850                        2,423


     R&D expenses                                   1,296                        1,073


     Financial
      revenues                                        160                         (59)


                                                    5,781                        4,549




                Net earnings
                 (loss) and
                 comprehensive
                 earnings
                 (loss)                           (1,871)                       1,092




                Basic and
                 diluted net
                 earnings
                 (loss) per
                 share                             (0.02)                        0.01

About Opsens Inc. (www.opsens.com or www.opsensmedical.com)

Opsens focuses mainly on physiological measurements, such as FFR and dPR in interventional cardiology. Opsens 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 over 80,000 patients in more than 30 countries. It is approved for sale in the United States, European Union, Japan, and Canada.

Opsens is also involved in industrial activities in developing, manufacturing and installing innovative fiber optic sensing solutions for critical applications.

Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Opsens to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.

Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

SOURCE OPSENS Inc.