Interim report July – September 2019

Third quarter in brief

• SyntheticMR had a sales growth of 7% in the third quarter compared to the previous year.
• Net sales amounted to SEK 12.0 million (11.2).
• Operating profit amounted to SEK 3.4 million (5.4).
• Profit for the period amounted to SEK 2.5 million (4.2).
• Earnings per share amounted to SEK 0.62 (1.04).
• Sales for rolling 12 months amounted to SEK 50.5 million (46.1).

Nine months in brief

• Net sales amounted to SEK 35.2 million (33.0), which means a sales growth of 7%.
• Operating profit amounted to SEK 9.5 million (13.4).
• Profit for the period amounted to SEK 7.2 million (10.2).
• Earnings per share amounted to SEK 1.79 (2.53).

Significant events during the third quarter

SyntheticMR has strengthened sales within the organization and is now represented both in India and Japan as well as with its own resources in the USA.

SyntheticMR's SyMRI NEURO software has been launched in the US together with Siemens Healthineers through their syngo.via open apps platform.

The interim report for the third quarter is the first report where consolidated accounts are prepared. The figures stated in this financial report refer to the Group unless otherwise stated. For more information, see accounting principles.

The Board has decided to postpone the application for a list change to NASDAQ OMX Stockholm. SyntheticMR has recently made a change of CEO and resources will be focused on business operations to further establish the Group's products in the global market.

Ulrik Harrysson has taken over as CEO on July 1, 2019.

The Chairman of the Board, Yvonne Mårtensson, resigned in September. Johan Sedihn was elected as acting Chairman.

Significant events after the third quarter

No significant events after end of period

CEO comments

During my first time at SyntheticMR, I have devoted a great deal to meeting partners and end customers in several important markets. The feedback, discussions and other impressions from all meetings have strengthened my view that we deliver coveted values to the customer and that we prioritize right as we increase the pace of implementing our strategies.

Sales in the third quarter amounted to SEK 12.0 million (SEK 11.2), which is an increase of 7 percent compared to the corresponding period last year. The increase is due both to the increased number of licenses sold and positive currency effects.

Operating profit amounted to SEK 3.4 million (5.4) in the third quarter, which corresponds to a margin of 29 percent (48).The lower margin is mainly due to increased investments in local sales resources to ensure the next phase of our growth journey.

As previously communicated, we have strengthened our sales resources during the period with a handful of our own representatives in priority markets. This is in line with our strategy of continuing to develop collaborations with our partners and getting closer to end customers. This investment follows the plan and already the number of customer demonstrations of our product solutions, an important step in the sales process, has increased significantly, especially in the US.

GE Healthcare have taken further initiatives towards our shared ambition to continue to broaden and deepen our partnership. We are developing our collaboration on existing MAGiC products, as well as through expanded offerings to both existing and new customer segments. 

Philips Healthcare is pleased to announce a higher priority in line with our common goal of having an in-depth agreement in place, which is a prerequisite for SyMRI to be included in their global product catalog. As before, we continue to work actively on joint sales activities in priority markets and during the period the number of active sales opportunities has increased.

Siemens Healthineers offers SyMRI in clinical practice as part of the syngo.via Open Apps platform. During the quarter, this offering was launched in the US, where we have experienced a clear increase in interest from end customers to invest in our solution for faster workflow and access to objective decision support.

We continue to set the highest priority in developing our partnerships, both old and new. By increasing the pace of our initiatives in line with their plans, and by balancing our geographical presence and penetration in priority markets, we create the conditions for long-term profitable sales growth.

Ulrik Harrysson 
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 November 12th, 2019

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