Interim report January – March 2019
First quarter in brief
- Net sales amounted to SEK 10.3 million (10.6)
- Operating profit amounted to SEK 2.9 million (3.6)
- Adjusted operating profit after non-recurring effects due to the change of CEO amounted to SEK 3.2 million
- Profit for the period amounted to SEK 2.2 million (2.8)
- Earnings per share amounted to SEK 0.55 (0.69)
- Sales for rolling 12 months amounted to SEK 47.9 million (37.1)
Significant events during the first quarter
The board of SyntheticMR AB has appointed Ulrik Harrysson as the new CEO of SyntheticMR AB.
SyntheticMR has sold the first licenses of MAGiC AW to GE Healthcare. These licenses give the clinicians the same functionality in “reading room” as they have had at the MR scanner.
Significant events after the first quarter
SyntheticMR has submitted an FDA application to get SyMRI cleared on the U.S. market together with MRI systems from Siemens.
As previously communicated, SyntheticMR's CEO Stefan Tell leaves his post. The last day of employment is set for April 30, 2019. The company's current CFO Fredrik Jeppsson takes over as acting CEO until the newly recruited CEO Ulrik Harrysson begins July 1st, 2019.
Sales during the first quarter is in parity with the corresponding period last year. Sales amounted to SEK 10.3 million (SEK 10.6 million). The negative sales growth during the first quarter is due to quarterly variations in MAGiC sales through GE Healthcare. Cash flow for the first quarter amounted to SEK 7.1 million (4.0), which demonstrates continued strong cash conversion rate, proof of a successful business model and strategy.
In our collaboration with GE Healthcare, we notice an increased interest in broadening their offerings based on our product, an acknowledgment of a strong partnership. As previously communicated, during the period we have made initial sales of MAGiC for the reading room, a positive development to increase the clinical benefit.
The development of cooperation with our other partners remains positive, although it is currently not yet seen to any great extent in our sales figures. I can state that we have taken decisive steps during the period to get SyMRI in the Philips product catalog, but we are not represented there yet which is a prerequisite for increased volumes. Regarding the cooperation with Siemens, we have submitted our application to the FDA after the end of the period in order to have SyMRI cleared together with Siemens MRI scanners in the US market.
Future growth will mainly be based on our partnerships. As a complement, we are now investing in our own local presence in the U.S. This is to strengthen cooperation with our partners' sales and marketing organizations, and with critical hospitals in this important market.
SyntheticMR operates in the global market and the position is strong through our partnerships. We build an installed base of scanners that are compatible with our manufacturer-independent quantification. In our scalable business model, this gives the opportunity to expand our product offerings. In this context, we are well positioned through our ongoing projects that are in different stages of maturity.
I am now leaving the company as CEO after seven fantastic years. During these years, we have developed SyntheticMR from a start-up to a growth company that today has agreements with the largest operators in the MRI market. We have in recent years invested in business development together with Siemens and Philips. SyntheticMR is well positioned for continued growth. I wish Ulrik Harrysson and the whole team good luck on the continued journey!
CEO SyntheticMR AB
For more information please contact Fredrik Jeppsson, CFO and Head of Investor Relations SyntheticMR AB +46 72 303 13 39
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 April 29th 2019.