Year-End report January – December 2022

Fourth quarter in brief

•  Net sales amounted to 20,6 million SEK (18,4), which means a sales growth of 12 percent.

• Operating profit amounted to 2,1 million SEK (5,2), corresponding to an operating margin of 10 percent (28).

• Net profit for the period amounted to 0,5 million SEK (3,1).

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

Full year January - December in brief

•  Net sales for the full year 2022 amounted to 68,3 million SEK (58,4), which means a sales growth of 17 percent.

• Operating profit amounted to 7,2 million SEK (10,0), corresponding to an operating margin of 11 percent (17).

• Profit for the period amounted to 5,9 million SEK (7,9).

• Earnings per share amounted to 0.15 SEK (0.20).

Significant events during the fourth quarter

SyMRI MSK received regulatory approval in Brazil.

SyntheticMR received the EU Medical Device Regulation (MDR) certificate.

SyntheticMR signed a sales agreement with a partner. The agreement means that SyMRI NEURO will be sold globally in a significant volume.
The sales value amounts to at least SEK 15m.

Significant events during the full year 2022

SyMRI NEURO is now compatible with Philips SmartSpeed, an AI-based acceleration technology for imaging.

SyMRI received regulatory approval in Malaysia.

Subsidiaries to SyntheticMR have been established in India and Japan.

Dr. Jeff Miller, Phoenix Children's Hospital, is a new member of the SyntheticMR Advisory Board.

During the period, a directed new issue of shares was carried out for an amount corresponding to SEK 60 million before transaction costs. The transaction was booked during quarter 2 2022.

Significant events after the fourth quarter

Nothing to report.

CEO comments

Solid sales development and investments in line with our growth plan.

Sales in the fourth quarter amounted to SEK 20.6 million (18.4). A new all time high is reached, approximately SEK 1.5 million higher than the sales record in previous quarter. This quarters sales corresponds to an organic growth of 12 percent, in comparison to the previous year’s final quarter which were strong in both in terms of sales and results. Operating profit amounted to SEK 2.1 million (5.2) which corresponds to a margin of 10 percent (28). Sales development mainly consists of larger orders from partners and increased direct sales. The lower result compared to the same period previous year is explained by planned investments in line with our growth plan.

One example of investment is increase of resources in existing priority markets related to the establishment internationally. Furthermore, our developed partner collaborations also meant that we increased our efforts at several customer exhibitions. We have also prioritized to increase our costs related to processes that will provide additional regulatory approvals to sell our customer solution. These initiatives are important for our growth both in the short and in the long term, and the selected investments are made based on good control of our costs.

For the full year of 2022 the sales amounted to SEK 68.3 million (+17%) and the operating profits to SEK 7.2 million (11%).

Successful development of partner collaborations.

Continuing to deepen partnerships with the manufacturers of MR scanners is a very high priority. A good example of this is our collaboration with Philips Healthcare. They market and sell our product SyMRI Neuro in combination with their AI-based imaging acceleration technology called SmartSpeed.

The customers gain great value in receiving more diagnostic information within a few minutes and the reception has been very positive.  The offer is called Smart Quant Neuro and was given much focus during one of the largest and most important customer exhibitions that took place during the second half of the fourth quarter.

Additional example of successful partnerships are with GE Healthcare. Our collaboration has developed and strengthened over many years. Under the name MAGiC Neuro, they market and sell our product SyMRI Neuro to their customers worldwide. Furthermore, we have our long-standing partnership with Siemens Healthineers. In addition to previously offering SyMRI Neuro, SyMRI Knee and SyMRI Spine have been available on their platform syngo.via Open Apps for some time now. Our partnerships, including the one with United Imaging, bring more customer access to SyMRI, and contributes therefore to our drive to support faster workflow and the provision of objective decision support to the healthcare.

Our in-dept partnerships also provide great opportunities regarding product development. The next generation SyMRI in 3D is highly prioritized. The already mentioned project with Canon Medical Systems, which started in the middle of 2021 is proceeding according to plan. Collaborations in this area is proceeding intensively with other partners as well and we are enthusiastic about the rate of increase in the development work. The collaborations will further establish and strengthen SyMRI on the global market in line with our ambition to become standard of healthcare.

Looking ahead

The conditions are very good for us to continuing to develop and strengthen our partner collaborations. They significantly strengthen our ability to achieve both our short- and long-term goals.  An example is the agreement with one of our partners that we communicated about during the period. In addition to the commitment to sell significant volumes, the agreement is of great strategic value for SyntheticMR in its ambition to continue to establish our solution as a standard in healthcare. Another example is our collaborations around product development, which are progressing successfully according to our ambitious plans.  

Related to product development, the regulatory approvals we received in the fourth quarter are of great importance for the possibilities of selling new product solutions in the relatively near future. A major success is that with the certification according to MDR (Medical Device Regulation), we can now start to sell the next generation SyMRI in 3D in the EU as soon as we are ready to launch the product. With the approval in Brazil for the use of the SyMRI Knee and SyMRI Spine, we have broadened our offer and thus strengthen our expansion in this important market.  

The positive response for SyMRI is clearly growing in strength. Market penetration is continuously increasing, and we clearly see a long growth path ahead of us. With SyMRI Knee and SyMRI Spine now available in Europe, India, Brazil, and Malaysia, that belief is strengthened. We have a higher efficiency in the organization, which is noticeable in increased direct sales. The investments in increases sales resources are paying off. I am also satisfied with the effectiveness of our investments in research and development. We invest thoughtfully in line with our plan. Furthermore, I note that we have now reached a level of cost that is currently reasonable and relevant to our business model from which we now continue to grow scalable. In 2023, we expect more than SEK 90,0 million in revenues and with an operating margin after depreciation of at least 20%. With good conditions for improved capital efficiency and while maintaining cost control, we continue to implement our growth plan.

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 15-02-2023 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 5-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 knee and spine anatomies. SyMRI NEURO is CE-marked and FDA 510(k) cleared and SyMRI MSK is CE-marked. 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.