Interim report July – September 2021
Third quarter in brief
- Net sales amounted to 13.6 million SEK (10.5), which means a sales growth of 29 percent.
- Operating profit amounted to 2.2 million SEK (-0.06).
- Net profit for the period amounted to 2.3 million SEK (-0.15).
- Earnings per share amounted to 0.06 SEK (-0.01).
First nine months in brief
Net sales for the first nine months amounted to 40.1 million SEK (32.9), which means a sales growth of 22 percent.
Operating profit amounted to 4.8 million SEK (-2.2).
Profit for the period amounted to 4.8 million SEK (-2.3).
Earnings per share amounted to 0.12 SEK (-0.06).
Significant events during the third quarter
Two global licensing and distribution agreements were signed during the quarter, one with Siemens Healthineers and one with Philips Healthcare.
SyMRI will be used in a study initiated by the National Institutes of Health (NIH) in the US.
Significant events during the first nine months
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.
A joint development project with Canon Medical Systems and Juntendo University Hospital, Japan, has begun.
Significant events after the third quarter
New version of SyMRI for head imaging received FDA approval.
Increased growth despite continued challenges in some markets
During the period, sales of SyMRI reached the highest level ever in a quarter. This is a result of the investments we have made in our own sales organization and the momentum that we have built up throughout the business. It is also gratifying that during the period we received an order for SyMRI with the greatest value to date. At the same time, it is important to note that we still have some restrictions related to the pandemic in some markets. Although the situation has improved in India, for example, there are a few orders we have received that have not been able to install as planned.
Sales in the period amounted to SEK 13.6 million (10.5), which is an increase of 29 percent compared with the corresponding period last year. The growth mainly consists of an increased number of SyMRI licenses sold through our own sales resources in the prioritized markets. Operating profit amounted to SEK 2.2 million (-0.1) in the third quarter, which corresponds to a margin of 16 percent (-1). The improved result compared with the same period last year is explained by the increased sales.
Milestones achieved with global partners
In August and September, respectively, we announced that we had entered into global licensing and distribution agreements with Siemens Healthineers and Philips Healthcare. The agreements mean that SyMRI is included in their respective sales force’s price list and that they can now market, sell and distribute SyMRI as part of their solution to their customers in various markets worldwide. This brings a significant addition to our sales resources and enable us to further support customers and healthcare providers worldwide. Examples of successes relating to these agreements can be seen with orders to France, Italy, and Japan received during the quarter.
Approximately one year ago, we signed an extended agreement with GE Healthcare, which now offers the full functionality of our solution to its customers. At the beginning of this year, the collaboration with our new partner United Imaging began. Overall, we now have a strong complement to our own sales resources through all our partners. With these partnerships, the total resources to market and sell SyMRI are strengthened, we broaden the available market and thereby increase the opportunities for increased sales. The collaborations will further strengthen and establish SyMRI in the global market in line with our ambition to become the standard in healthcare.
SyMRI to be used in national study in the United States
We are very proud that SyMRI will be used in a study initiated by the NIH, National Institutes of Health, in the USA. The HEALthy Brain and Child Development Study (HBCD) aims to increase understanding of the development of normal cognitive, behavioural, and emotional functions from birth and during the child's upbringing. Children from vulnerable areas will undergo, among other things, MRI examinations where SyMRI is included in the protocol. More than 20 institutions across the country are participating in the study, which will run for over 10 years.
In connection with this study, SyMRI not only contributes to increasing the understanding of how the brain develops during the children's first years of life, but also to establishing SyMRI as a standard in the client's clinical workflow. This is in addition to the fact that SyMRI is already in daily routine at, for example, the Mayo Clinic and MD Anderson Cancer Center.
Although disruptions due to the pandemic still limit us in some markets, I am very positive in my outlook. SyntheticMR is well positioned to successfully continue to establish SyMRI as the standard in healthcare. The fact that we are now supplementing our commercial resources with sales capacity from two more partners strengthens my view. The available market and the total resources to market and sell SyMRI have increased significantly. I can state that we continue to build a strong foundation that is very valuable for our continued growth journey.
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 11-11-2021 08:06 CET.
For additional information, please contact Ulrik Harrysson, CEO, SyntheticMR AB, +46 70 529 29 87 email@example.com or Johanna Norén, CFO and Head of Investor Relations, SyntheticMR AB, +46 70 619 21 00 firstname.lastname@example.org.
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.