Interim report April – June 2019
Second quarter in brief
- SyntheticMR had a sales growth of 16 percent in the second quarter compared to the previous year.
- Net sales amounted to SEK 12.9 million (11.1).
- Operating profit amounted to SEK 3.2 million (4.4).
- Profit for the period amounted to SEK 2.5 million (3.2).
- Earnings per share amounted to SEK 0.61 (0.80).
- Sales for rolling 12 months amounted to SEK 49.7 million (42.6).
First half year in brief
- Net sales amounted to SEK 23.2 million (21.8), which means a sales growth of 7 percent.
- Operating profit amounted to SEK 6.2 million (7.9).
- Profit for the period amounted to SEK 4.7 million (6.0).
- Earnings per share amounted to SEK 1.16 (1.48).
Significant events during the second quarter
The Annual General Meeting resolved, in accordance with the submitted proposal, to appoint Yvonne Mårtensson as the new Chairman of the Board.
SyntheticMR has received clearance from the FDA, for the use of SyMRI together with Siemens systems.
SyntheticMR invests in local presence in the US and as part of this, a subsidiary has been registered, SyntheticMR U.S. Inc.
At the end of the quarter, a subsidiary manager was recruited to the newly started company in the U.S. The person takes up his position on August 1, 2019.
Significant events after the second quarter
Ulrik Harrysson has started his position as CEO as of 1 July 2019.
The Board of Directors has decided to postpone the application to change trading list to NASDAQ OMX Stockholm. The company has recently made a CEO change and the resources will be focused on the business operations to further establish the company's products in the global market.
It is with great enthusiasm and a high level of ambition, that I have now started my position as CEO of SyntheticMR. The company possesses a strong expertise that builds on our unique technology and develops, markets and sells innovative solutions that meet customersneeds. I see great development opportunities for SyntheticMR. Having pre-existing partnerships with the largest players within MRI, means that conditions are good for continuing to strengthen the company's position in the global market.
I can report that sales during the second quarter amounted to SEK 12.9 million (SEK 11.1 million), which means an increase of 16%. The growth is attributable to a combination of higher sales through all our partners.
Cash flow during the quarter was negative due to the dividend payment of SEK 6.6 million, which was decided at the Annual General Meeting at the end of April. Cash flow from operating activities remains positive, SEK 1.2 million (SEK 4.4 million), and we see continued good cash conversion rate.
The collaboration with GE Healthcare is progressing well, with continuing steps in the right direction. During the quarter we have continued positive discussions about widening our partnership further. This means not only increased customer offerings in the existing MAGiC product, but also the opportunity for GE Healthcare to offer additional solutions. MAGiC aims to simplify and shorten the time of an MRI exam, while at the same time maximizing the productivity of the hospital or clinic. GE Healthcare sees that these offerings fit well with the market conditions that emerge primarily in developing countries but also in larger countries in Asia.
In our collaboration with Philips, we are working intensively on the required actions to get SyMRI into their global product catalog. It will take some time until we are included there, as this requires an updated agreement as well as long lead times in Philips' internal processes. In the meantime, we are actively working on other sales initiatives, which during the period resulted in the sale of SyMRI to one of Europe's largest university hospitals.
In the second quarter, another application was submitted to the FDA regarding the use of SyMRI together with MRI systems from Siemens. The same application was subsequently cleared during the period, which means that SyMRI is now available for clinical use in the US market together with all of our partners.
As previously communicated, we are now accelerating our investments in our own local presence in the US. At the end of the quarter, we have completed the recruitment of the first staff member for our newly started US subsidiary. With the latest approval from the FDA, we now see that it is a good opportunity to increase our local presence and support our partners for increased sales and deployment of SyMRI.
SyntheticMR is a growth company and I see great potential in the company's long-term opportunities for increased profitable sales growth. We are now increasing the pace of strengthening the company's position globally. The establishment in the US, the world's largest healthcare market, is a significant step towards that ambition.
CEO SyntheticMR AB
For additional information, please contact Fredrik Jeppsson, CFO and Head of Investor Realtions, SyntheticMR AB, +46 72 303 13 39 or Ulrik Harrysson, CEO, SyntheticMR AB, +46 70 529 29 87
SyntheticMR AB develops and markets innovative software solutions for Magnetic Resonance Imaging (MRI). SyntheticMR AB product SyMRI® delivers multiple contrast images and quantitative data from a single 6-minute scan – to improve patient throughput and objective decision support for clinicians. SyMRI is CE-marked and FDA 510(k) cleared. SyMRI is a registered trademark in Europe and in the USA. SyntheticMR is listed on the Spotlight Stock Market in Stockholm, Sweden. For additional information, please visit www.syntheticmr.com.
This information is information that SyntheticMR AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on July 17th, 2019