Interim report January – September 2018

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Third quarter in brief

  • SyntheticMRs had sales growth of 46% in the third quarter compared to the previous year.
  • Net sales amounted to SEK 11,2 million (7,7)
  • Operating profit increased to SEK 5,4 million (2,2)
  • Profit for the period amounted to SEK 4,2 million (1,7)
  • Earnings per share amounted to SEK 1,04 (0,42)
  • Sales for rolling 12 months amounted to SEK 46,1 million (31,6)

Nine months in brief

  • Net sales amounted to SEK 33,0 M (22,5), which means sales growth of 47%
  • Operating profit increased to SEK 13,4 M (5,7)
  • Profit for the period amounted to SEK 10,2 M (4,4)
  • Earnings per share amounted to SEK 2,53 (1,09)

Significant events during the third quarter
No significant events during the quarter. 

Significant events after the third quarter
SyntheticMR's CEO Stefan Tell will leave the company. He will however remain as CEO until June 30th, 2019 at the latest. Stefan has been CEO of SyntheticMR since 2011.

CEO comments

Continued growth with increased profitability
In the third quarter, we see a sales growth of 46% compared to the same period last year. This means that sales amounted to SEK 11.2M (7.7) for the quarter. Sales for the past twelve-month period was SEK 46.1M (31.6), even here a growth of 46%.  

The operating profit for the quarter was SEK 5.4M (2.2), giving a margin of 48% (29). We will invest in our business for continued expansion of both sales and partnerships. Our strategy in combination with a scalable business model enables expansion with continued good profitability.

Cash flow for the quarter amounted to SEK 6.4M, which means that cash assets for the first nine months increased by SEK 13.9M. Cash assets per September 30th was SEK 30.8M.

Our partnerships are developing according to plan
During the year we have focused on developing our partnerships in accordance with our establishment strategy. This through additional regulatory approvals to open new markets. In parallel, continuous and focused business development is taken place, with the aim of increasing product offerings and sales growth within our channels.

The collaboration with GE Healthcare is developing positively. During the quarter, we have focused on completing the last activities prior to sales start of MAGiC into the "reading room". We estimate a sales starts at the end of this year. Through MAGiC GE Healthcare offers its customers one of our product packages. We have previously had discussions with GE Healthcare about the opportunity to offer our second product package, SyMRI NEURO, to its customers. These discussions have been intensified and I'm positive that we can make progress also in this matter.  

During the previous quarter, SyntheticMR received FDA clearance for sale of SyMRI together with Philips systems on the US market. After this clearance, we have seen increased interest from sales organizations within Philips. The global interest creates additional incentives for Philips to make SyMRI available in its product catalog, an important step in the simplification of our joint sales process. 

Syngo.via Open Apps was launched by Siemens in the second quarter of 2018. Siemens is working to upgrade customers' syngo.via systems to make Open apps and SyMRI available. This is a time-consuming process. We see an increased interest from regional sales organizations around the world, which is positive. During the period we have strengthened our commercial department with the focus of developing our cooperation and our sales through Siemens.

Continued great interest in the research community
We still see great interest for our product within research. A study evaluating SyMRI on the spinal cord was covered in a podcast hosted by AJNR (American Journal of Neuroradiology) and attracted great interest in the research community. SyMRI NEURO was also presented under the ESNR (European Society of Neuroradiology) as a product with a high potential for shortening exam time within pediatric. These types of studies and presentations are important for increasing utilization rate of SyMRI, as well as placing SyntheticMR as a world-leading partner within MR in general.

Own booth at RSNA
I´m looking forward to our participation at the RSNA in Chicago, the world's largest radiology exhibition, which takes place in the end of November. For the first time we will have our own booth in order to strengthen our brand and our relationships. Our booth will serve as a meeting place to establish new and develop existing partnerships and customer relations. Our products will, like previous years, be demonstrated and marketed in the booth of GE Healthcare, Siemens, Philips and Sectra. 

Stefan Tell 
CEO SyntheticMR AB

For more information please contact Fredrik Jeppsson, CFO and Head of Investor Relations SyntheticMR AB +46 72 303 13 39 or Stefan Tell, CEO SyntheticMR AB, +46 73 373 40 90.

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 November 16th 2018.