Opsens reports second quarter 2014 results

QUEBEC CITY, April 29, 2014 /CNW Telbec/ - Opsens Inc. ("Opsens" or" the Company") (TSXV: OPS) today released results for its second quarter ended February 28, 2014.

SECOND QUARTER 2014 HIGHLIGHTS 

  • Opsens completes an $8.5 million equity financing;
  • Opsens named to the 2014 TSX Venture top 50®;
  • Opsens' FFR products submitted for approval in Japan.

RECENT HIGHLIGHTS 

  • Opsens grants Abiomed US$6 million license for heart pumps circulatory assist device.

REPORT ON FFR AND THE MEDICAL INSTRUMENTATION SEGMENT

Opsens has developed the OptoWire and the OptoMonitor, products to measure Fractional Flow Reserve ("FFR") in patients suffering from coronary artery disease. "We are fully committed and remain on track in our plan to become a leading provider of FFR technology," said Louis Laflamme, Opsens' President and CEO. It is estimated that the FFR market reached US$250 million in sales in 2013 and is growing at 15-17% annually. Opsens is positioned to capitalize on that growth. Market participants further expects the FFR market to reach $1 billion in the foreseeable future.

To support its goals, Opsens closed an $8.5 million financing during the second quarter, led by RBC Capital Markets and including Paradigm Capital Inc. In addition to the financing, Opsens has granted a US$6 million exclusive worldwide license for a sub-assembly of its miniature optical pressure sensor to be integrated in Abiomed's circulatory assist devices, including the Impella® line of heart pumps. An amount of US$1.5 million has been paid at closing. The balance will be disbursed upon the achievement of defined milestones. With these new funds, Opsens will have the financial means to roll out its strategy and successfully commercialize and market its FFR products.

From a regulatory standpoint, Opsens' FFR products have been submitted for approval in Japan five months ahead of schedule.

Opsens said it is also preparing to file a 510(k) clearance in the United States within the next few weeks, which is a top priority for the Company and will pave the way for entering the world's biggest FFR market. In addition, Opsens intends to perform a first in-man study for OptoWire and OptoMonitor by measuring FFR in patients with coronary artery disease who are undergoing a coronary angiogram. "These are important milestones in the evolution of our company," Laflamme said.

Regarding the European market, Opsens expects to file for regulatory CE Mark over the next two months, which will conclude filing in all main markets. While waiting for clearance, Opsens is working on its distribution strategy. The Company expects to commercialize its FFR products in the first half of calendar year 2015. Opsens is impatient to market its technology to the FFR market, as penetration of a fraction of this market will have a major impact on Opsens' consolidated sales

Oil and Gas Segment

A large portion of the sales included in the backlog have not materialized as scheduled. A major customer encountered delays in the delivery time of key components which has set back preparation of the wells. Consequently, Opsens had to hold off installations, which partly explains the lower sales in the oil and gas sector this quarter. These installations have been postponed to future quarters. In addition, one of the largest customer in 2013 placed fewer orders in the second quarter of fiscal 2014, when compared with last year. However, Opsens expects increased revenues in the remaining portion of the 2014 fiscal year when compared to same period in 2013, as the number of installations returns to normal.

Second Quarter Results

Consolidated sales reached $1,118,000 in the three-month period ended February 28, 2014 compared with revenues of $1,836,000 a year earlier, a consequence of lower sales for the oil and gas segment, as explained above. This was partly offset by increased revenues in the industrial field where significant orders were placed by two clients.

The Company's backlog was still strong at the end of the second quarter, reaching $3,071,000.

Net loss for the three-month period ended February 28, 2014 amounted to $843,000 compared with a net loss of $623,000 in the comparative period. The increase in net loss reflects the lower revenues generated during the quarter partly offset by lower administrative, marketing and research and development expenses, a demonstration of management's continuous focus on controlling costs.

               
(In thousands of Canadian dollars, except for information per share)  Three-month
period ended
February 28,
2014
  Three-month
period ended
February 28,
2013
  Six-month
period ended
February 28,
2014
  Six-month
period ended
February 28,
2013
$   $   $   $
Sales 1,118   1,836   3,320   4,370
Cost of sales 744   1,193   2,146   2,508
Gross margin 374   643   1,174   1,862
               
Administrative expenses 541   611   1,114   1,149
Marketing expenses 211   226   505   476
R&D expenses 357   424   863   811
Financial expenses 108   5   220   27
  1,217   1,266   2,702   2,463
               
Net loss and comprehensive loss (843)   (623)   (1,528)   (601)
               
Net loss per share - Basic (0.02)   (0.01)   (0.03)   (0.01)
Net loss per share - Diluted (0.02)   (0.01)   (0.03)   (0.01)

Grant of stock options

Opsens' Board of Directors authorized, on April 25, 2014, the grant of 445,000 stock options, of which 100,000 were granted to officers, as provided in the Opsens' stock option plan adopted by the shareholders on January 20, 2014.

Under the provisions of Opsens' stock option plan, each stock option granted entitles the holder to subscribe to one Opsens' common share at the latest on April 24, 2019 and at a price equal to $0.75 per share. The stock options granted will be vested over a period of four years at a rate of 25 % per year, the first tranche being vested at the end of the first year following the granting of the stock options.

About Opsens Inc. (www.opsens.com)

Focusing on two main growth markets, FFR in medical instrumentation and oil and gas, Opsens develops, manufactures and installs systems to measure pressure and temperature as well as other parameters using fiber optic sensing technologies. These systems are designed around patented technologies that are effective and durable in extreme conditions.

Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Opsens to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

SOURCE OPSENS INC.

For further information:

Thierry Dumas, CPA, CA, Chief Financial Officer, 418.682.9996

Louis Laflamme, CPA, CA, Chief Executive Officer, 418.682.9996