OPSENS REPORTS Q1 2016 RESULTS
Quebec City, Quebec, January 19, 2016 – Opsens Inc. (“Opsens” or the “Company”) (TSXV:OPS) (OTCQX:OPSSF) today released the results of its first quarter ended November 30, 2015.
Highlights for the quarter and the last months
- Revenues for the sales of Fractional Flow Reserve (“FFR”) products during the first three months of fiscal 2016 reached $893,000, which is higher than the revenues for the sale of FFR products for the twelve months of fiscal year 2015, which reached $527,000;
- Opsens received orders worth $1.2 million for its FFR products from Japan, to be recognized in the second and third quarters of fiscal 2016;
- Opsens closes $5 million equity financing on December 22, 2015.
FFR Products and Commercial Activities Expand
Opsens has continued to expand on the marketing of its products in the FFR guidewire market. Revenues for the first three months of fiscal 2016 amounted to $893,000, which exceeds revenues of FFR products for the twelve months of fiscal year 2015. In the second quarter of fiscal 2016, FFR revenue growth will be supported by Japanese orders worth $1.2 million, received in December 2015.
“Opsens’ team is working on the expansion of its sales network to capitalize on the rapidly growing FFR market, which was estimated at US$300 million in 2014. Feedback from users of our products has highlighted the distinctive features of the OptoWire and OptoMonitor,” said Claude Belleville, Opsens’ Vice President, Medical Instrumentation.
In the industrial sector, Opsens’ versatile technology applications address the needs of diverse markets. Opsens’ products perform in the most demanding environments and offer advantages in terms of improved production, cost reduction and security of sites. Opsens’ commercial activities have increased, evidenced by the number of proposals submitted during the quarter.
Closing of a $5 Million Financing to Support the Expansion of Marketing of FFR Products
On December 22, 2015, Opsens closed a financing, which raised the Company’s cash position to more than $9 million. This provides Opsens with the flexibility needed to expand marketing of its FFR products and to support its activities in other sectors.
Financial Results – Three-month period ended November 30, 2015
Opsens’ sales were up for the three-month period ended November 30, 2015, amounting to $1,711,000 compared with $1,320,000 for the same period last year, without taking into consideration distribution rights of $3,117,500 recorded in 2014. The increase is explained by increased FFR revenues of $842,000 when compared with last year, which was partly offset by lower oil and gas revenues of $532,000 resulting from the difficult economic environment in Alberta, Canada, due to the significant drop in crude oil prices. The comparative revenues do not include the distribution rights of $3,117,500 recognized in 2014, which resulted from a milestone payment of $1,115,500 (US$1,000,000) received when the Company obtained Shonin approval in October 2014 and by the CE mark approval obtained in November 2014. These regulatory clearances allowed the Company to record in the statement of earnings (loss) and comprehensive income (loss), deferred revenues amounting to $2,002,000 (US$2,000,000).
Gross margin decreased for the quarter ended November 30, 2015 when compared with last year, from $3,508,000 to $483,000. The decrease is explained by the non-recurring revenues recorded last year.
As a result, net loss totaled $1,658,000 for the three-month period ended November 30, 2015, compared with net earnings of $1,162,000 for the corresponding period last year.
|(in thousands of Canadian dollars, except for information per share)|
Three-monthperiod endedNovember 30, 2015
Three-monthperiod endedNovember 30, 2014
|Cost of sales||1,228||929|
|Sales and marketing expenses||476||426|
|Financial expenses (revenues)||248||(38)|
|Impairment of assets||–||796|
|Net earnings (loss) and comprehensive income (loss)||(1,658)||1 162|
|Net earnings (loss) per share – Basic||(0.03)||0,02|
|Net earnings (loss) per share – Diluted||(0.03)||0,02|
Grant of Stock Options
Opsens’ Board of Directors authorized, on January 18, 2016, the grant of 1,007,250 stock options, of which 150,000 were granted to Officers, as provided in Opsens’ stock option plan.
Under the provisions of Opsens’ stock option plan, each stock option granted entitles the holder to subscribe to one Opsens’ common share at the latest on January 17, 2021 at a price equal to $0.93 per share. The stock options granted will vest over four years at 25% per year, with the first tranche being vested at the end of the first year following the granting of the stock options.
About Opsens Inc. (www.opsens.com or www.opsensmedical.com)
Opsens focuses mainly on the measure of Fractional Flow Reserve (“FFR”) in interventional cardiology. Opsens offers an advanced optical-based pressure guidewire (OptoWire) that aims at improving the clinical outcome of patients with coronary artery disease. Opsens is also involved in industrial activities. The Company develops, manufactures and installs innovative fibre optic sensing solutions for critical applications, such as the monitoring of oil wells and other demanding industrial 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 Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Thierry Dumas, CPA, CA, Chief Financial Officer, 418.682.9996
Louis Laflamme, CPA, CA, Chief Executive Officer, 418.682.9996