Year-End report January – December 2021

Fourth quarter in brief

• Net sales amounted to 18.4 million SEK (15.8), which means a sales growth of 16 percent.

• Operating profit amounted to 5.2 million SEK (3.1).

• Net profit for the period amounted to 3.1 million SEK (3.0).

• Earnings per share amounted to 0.08 SEK (0.07).

Full year January - December in brief

•  Net sales for the full year 2021 amounted to 58.4 million SEK (48.7), which means a sales growth of 20 percent.

• Operating profit amounted to 10.0 million SEK (0.9).

• Profit for the period amounted to 7.9 million SEK (0.7).

• Earnings per share amounted to 0.20 SEK (0.01).

Significant events during the fourth quarter

During the period, the highest quarterly sales in SyntheticMR's history was achieved.

Significant events during the year 2021

Two global licensing and distribution agreements were signed during the third quarter, one with Siemens Healthineers and one with Philips Healthcare.

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.

SyMRI will be used in a study initiated by the National Institutes of Health (NIH) in the US.

Significant events after the fourth quarter

SyntheticMR US Inc has entered a partnership with Hyland Healthcare

CEO comments

Increased sales after last quarter's record

Sales in the period once again reached an all-time high for a single quarter. SEK 18.4 million is thereby the highest quarterly sales in SyntheticMR's history. This is an increase of 16% compared to a strong fourth quarter last year when sales amounted to SEK 15.8 million. Despite the occasional disruption due to the pandemic in some markets, we have not lost business and I consider sales in the last three months of 2021 to be satisfactory. 

Encouragingly, we are seeing results from the global licensing and distribution agreements we recently signed with Philips Healthcare and Siemens Healthineers. They have already generated orders during the quarter. With similar agreements already in place with GE Healthcare among others, I conclude that all major MRI scanner manufacturers are now actively contributing to SyMRI sales. We are also encouraged by the fact that all our priority markets continue to show a clear sales growth.

Operating profit amounted to SEK 5.2 million (3.1) in the fourth quarter, corresponding to a margin of 28% (20). This shows that we are gaining leverage in operating profit as sales increase and I am pleased with our improved operational efficiency.

SyMRI as standard through successful partnerships

Continuously developed collaborations with our partners contribute, in several ways, to our ambition to establish SyMRI as a standard in healthcare. For example, our commercial resources are significantly enhanced by the global licensing and distribution agreements we have signed with the major MRI scanner manufacturers. In addition to our own direct sales capability, we now have four additional sales channels, all of which are already generating orders.

We are also collaborating on development projects related to the product plan we are implementing, such as the next generation SyMRI. This 3D product solution will increase the detail in images and quantitative data from examinations and further improve the support for healthcare providers in more clinical applications. The project with Canon Medical Systems, which started in mid-2021, is one of several examples of these product development collaborations.

The way forward

The signal from the market is strong, our offer is appreciated and the high ambitions we have for future growth are achievable. The planned expansion of the product portfolio will give us more solutions to sell, and I am confident that they will be well received by the market. Our installed base remains almost negligible in terms of market share and as I have said many times, it is up to our own execution to succeed.

Key conditions for continued profitable growth are in place. We have a new pricing model with time-limited licences at a considerably higher price than before. Our significantly increased sales capacity through our global licensing and distribution agreements to complement our own direct sales resources is now implemented. Product development projects in collaboration with our partners are underway to a greater extent than before. These are just a few of the growth drivers.

We continue to focus on implementing the initiatives defined in our growth plan. Time is of the essence in our ambition to establish SyMRI as a standard in healthcare. Therefore, we are accelerating initiatives such as continuing to establish ourselves in existing and new markets, all while maintaining cost control. We will also offer our solution to more customer segments. Our solid product plan will be implemented even more effectively. These initiatives will be further implemented through various types of collaborations and partnerships. With a high level of ambition and strong commitment, we will continue our growth journey.

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 22-02-2022 08:23 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 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 KNEE and SyMRI SPINE are 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.