Interim report April – June 2021

Second quarter in brief

• Net sales amounted to 11.8 million SEK (9.9), which means a sales growth of 19 percent.

• Operating profit amounted to 0.1 million SEK (-3.0).

• Net profit for the period amounted to -0.2 million SEK (-3.0).

• Earnings per share amounted to -0.01 SEK (-0.08).

First half year in brief

•  Net sales for the first half year amounted to 26.5 million SEK (22.4), which means a sales growth of 18 percent.

• Operating profit amounted to 2.6 million SEK (-2.2).

• Profit for the period amounted to 2.5 million SEK (-2.2).

• Earnings per share amounted to 0.06 SEK (-0.06).

Significant events during the second quarter

A joint development project with Canon Medical Systems and Juntendo University Hospital, Japan, has begun. 

Significant events during the first half year

A global license agreement was signed in the first quarter with United Imaging regarding marketing and sales of SyMRI NEURO.

A first order from United Imaging was received during the same quarter.

SyMRI MSK has received CE mark and is now approved for clinical use in Europe.

Significant events after the first quarter

CEO comments

Continued positive development with challenges in certain markets

SyntheticMR has high ambitions in terms of sales growth, so we are not satisfied with net sales in the second quarter, despite double-digit growth. Continued pandemic restrictions in certain markets hampered the sales process in some cases. No projects have been canceled but instead will be completed later than planned. However, growth for the third quarter in a row, shows a continuing positive development, despite the ongoing challenging period. Sales amounted to SEK 11.8 million (9.9), which is an increase of 19 percent compared with the corresponding period last year. Operating profit amounted to SEK 0.1 million (-3.0) in the second quarter, which corresponds to a margin of 1 percent (-30).

The improved operating profit compared with the same period last year is attributable to an increase in sales. Sales growth mainly consists of an increased number of licenses sold to GE Healthcare and SyMRI through our own sales resources in the priority markets.

Overall, we continue to operate under challenging conditions, with the circumstances differing between the markets we operate in. In India, for example, installation and revenue were planned during the quarter for six license orders received. Due to various restrictions in the country, the result ended up being three. However, in the United States, all types of sales activities can be carried out, reinforcing the importance of the US market to our business.

It is important to point out that all our prioritized markets contribute to the overall sales development of SyMRI and that we continue to gain momentum throughout our sales operations.

Partnership development

Initiating collaborations with new partners is central to our growth plan. During the period, we have informed that we are part of a joint development project with Canon Medical Systems, which has a strong market position both in Japan and internationally. Together with Juntendo University Hospital in Tokyo, we will focus on the joint development and evaluation of quantitative imaging solutions for clinical use. Another example of new partnerships is the milestone we reached earlier this year, when we signed a global licensing agreement with our new partner, United Imaging. In addition to an increase in sales, this collaboration gives us, among other things, a significantly stronger position in China, strengthened conditions for establishing SyMRI in the global market, and an increased contribution to an even more favorable product mix.

The highest priority is to continue to broaden and deepen our existing partnerships. An initiative in line with this is to have SyMRI included in our partner's price list, which both streamlines and stimulates the sales process significantly. With this approach, the total resources to market and sell SyMRI are strengthened, we broaden the available market and thereby increase the opportunities for increased sales. The development of the agreement with GE Healthcare, which we previously reported, is a good example of this in practice.

Looking ahead

SyntheticMR has a strong foundation for continued growth, despite the resistance we have encountered in certain markets. Examples of this are the increasing performance of our own sales resources and how successfully we continue to develop our partnerships. Although restrictions due to the pandemic have been significant in certain markets, we have continued to be able to do business, for example via digital channels. Positive experiences from this digital communication, I believe, will also continue after the pandemic, and contribute to more efficient sales processes in the future. This is positive for our ambitions to achieve global coverage with our products.  I am convinced that SyntheticMR is well positioned to continue to develop and sell quantitative imaging solutions that are the standard of care in the client's clinical workflow.

Ulrik Harrysson

CEO, SyntheticMR AB (publ)

This is a translation of the Swedish version of the report. When in doubt, the Swedish wording prevails.


 

This disclosure contains information that SyntheticMR AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 13-07-2021 08:09 CET.

For additional information, please contact Ulrik Harrysson, CEO, SyntheticMR AB, +46 70 529 29 87 ulrik.harrysson@syntheticmr.com or Johanna Norén, CFO and Head of Investor Relations, SyntheticMR AB, +46 70 619 21 00 johanna.noren@syntheticmr.com.

SyntheticMR AB develops and markets innovative software solutions for Magnetic Resonance Imaging (MRI). SyntheticMR AB has developed SyMRI®, delivering multiple, adjustable contrast images and quantitative data from a single 6-minute scan. The SyMRI product is available in different packages. SyMRI NEURO delivers multiple contrast images, tissue segmentations and quantitative data on the brain. SyMRI MSK provides multiple contrast images and quantitative data for MSK anatomies. SyMRI NEURO is CE-marked and FDA 510(k) cleared and SyMRI MSK is CE-marked and FDA 510(k) pending. SyMRI is a registered trademark in Europe and the USA. SyntheticMR is listed on the Spotlight Stock Market Exchange in Stockholm, Sweden. For more information, visit www.syntheticmr.com.