Opsens announces Q4 results

QUEBEC CITY, Nov. 15, 2011 /CNW Telbec/ - Opsens Inc. ("Opsens") (TSXV: OPS) today released results for the year ended August 31, 2011.

Highlights

  • Revenue rose to $6.0 million in fiscal 2011 from $5.3 million a year earlier, a 14% increase.
  • Oil and Gas revenues have grown 75% during FY 2011.
  • Net loss of $2,511,000 or 5 cents a share in FY 2011 compares with a net profit of $593,000 or 1 cent a share a year earlier. The difference is explained by a gain of $2,375,000 on the disposal of the company's high-power transformers activities in 2010.

«In the past years, Opsens has established the necessary foundation to offer sustained growth to its shareholders. In 2011, Opsens has continued building with an increase of its consolidated sales and major developments towards its objective to commercialize its first medical instrumentation product. We are confident that our products and team's expertise will allow us to continue in that direction and that our efforts will translate into tangible results» said Pierre Carrier, President and Chief Executive Officer.

Oil and gas - Strong Growth

Opsens continues commercialization of its patented pressure/temperature OPP-W sensor to Alberta's Steam Assisted Gravity Drainage (« SAGD ») market. Opsens' Oil and Gas revenues have grown 75% during FY 2011. Opsens received its second commercial order to instrument 21 wells with its OPP-W sensor. The Company also extended its customer base in heavy oil. Opsens Solutions' innovative ways for the creation and deployment of new applications translated into diversification of uses for the OPP-W, a promising element for sales growth related to this product.

Medical Instrumentation - Development of the FFR products is progressing fast

Fractional Flow Reserve or FFR is an index of the functional severity of coronary stenoses calculated from pressure measurements taken before and after narrowing of arteries discovered during coronary angiography. FFR measurement is an increasingly popular method used in the treatment of cardiac lesions. The FAME Study, published in 2009, outlined the positive result this cost effective procedure has on patients' overall outcome.

In FY 2011, Opsens has made great strides in the development of its portfolio of product for the measurement of FFR with the presentation of the EasyWire and OptoWire. Opsens has notably reported on the results of the animal study. Those results showed that the EasyWire and OptoWire performed exceptionally well, that they were safe, that they had a remarkable ability to advance through the artery to reach all types of lesions, and that pressure measurements taken during the study were optimal.

The FFR market is growing strongly and Opsens is determined to provide cardiologists with products that really answer to their needs.

At the same time Opsens is developing these products, the Company has added to its intellectual property with the filing of several patents. Opsens has received the Canadian Patent for the EasyWire. This patent is especially important because it defines the unique character of the product, demonstrates the legitimacy and strength of our intellectual property and reinforces our business model in the medical sector.

Opsens also received ISO 13485 certification, an internationally recognized reference standard that incorporates the quality and safety constraints specific to medical devices. By obtaining ISO 13485 certification, Opsens has shown its ability to develop products that are capable of meeting the strictest regulatory requirements and of respecting the industry's highest standards.

Year ended August 31, 2011

The Company reported revenue of $6,005,000 for the year ended August 31, 2011, compared with $5,281,000 a year earlier, an increase of 13.7%. The growth in the sales is explained by growth of close to $1,800,000 in the oil and gas market. Rising income in this sector is due to the emphasis on the superior performance of our products.

Sales in the oil and gas sector totalled $4,200,000, compared with $2,405,000 for 2010. Management anticipates that revenues from oil and gas will continue to grow as the OPP-W sensor becomes more mature and as we expand its applications and market other products.

Sales in medical instrumentation were close to $430,000 in fiscal 2011 compared with $483,000 for 2010. For the year ended August 31, 2011, a significant proportion of medical sales were made to OEM for pressure measurement for preclinical use.

Research and development expenses increased to $1,417,000 in fiscal year 2011 from $1,047,000 in 2010. The augmentation reflects an increase in the number of employees linked to the development of our new medical device.

Outlook

Opsens wants to capitalize on continuing investment in the oil sector to continue growth of its oil and gas related products. The approach to offer a wide range of products and services in this field is essential to Opsens' development because it will help long-term revenue growth.

Thanks to its miniature optical sensing technology, its intellectual property, its team and scientific advisory board, Opsens has all the elements to secure required approval for commercializing its high sale potential medical products in FY 2013. While focusing on the development, Opsens is considering partnership possibilities to insure a distribution platform well-suited for interventional cardiology.

   
(In thousands of Canadian dollars, except for information
per share) 
Year Ended
August 31, 2011
Year Ended
August 31, 2010
  $ $
Sales 6,005 5,281
Cost of sales 4,095 3,173
Gross margin 1,910 2,108
  
Administrative expenses 2,036 1,521
Marketing expenses 645 870
R&D expenses 1,417 1,047
Financial income (89) (41)
Stock option-based compensation 185 282
Amortization of property, plant and equipment 200 179
Amortization of intangible assets 27 32
Gain on disposal (2,375)
  4,421 1 515
  
Profit (Loss) before income taxes (2,511) 593
Income taxes - -
Net Profit (Net loss) (2,511) 593
Net Profit (Net loss) per share - Basic (0.05) 0.01
Net Profit (Net loss) per share - Diluted (0.05) 0.01

Grant of stock options

Opsens' Board of Directors also authorized yesterday the grant of a total of 870,000 stock options, of which 350,000 were granted to certain directors and officers and 520,000 to certain employees, as provided in the Opsens' stock option plan adopted by the shareholders on January 21, 2011.

Under the provisions of Opsens' stock option plan, each stock option granted entitles the holder to subscribe for one Opsens' common share at the latest on November 14, 2016 and at a price equal of $0.23 per share. The stock options granted to the directors entitle the holders to subscribe immediately for Opsens' common share whereas the stock options granted to the employees 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)

Opsens is a leading developer, manufacturer and supplier of a wide range of fiber optic sensors and associated signal conditioners based on proprietary patented and patent pending technologies. Opsens' sensors provide long-term accuracy and reliability in the harshest environments. Opsens provides sensors to measure pressure, temperature, strain and displacement to original equipment manufacturers (OEM) and end-users in the oil and gas, medical and laboratory fields. Opsens provides complete technical support, including installation, training, after-sales service, for its fiber optics systems that are regulated by the ISO 9001-2008 and ISO 13485 norms.

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.

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.

 

 

SOURCE OPSENS INC.

For further information:

Pierre Carrier, President and Chief Executive Officer, 418.682.9996
Louis Laflamme, CA, Chief Financial Officer, 418.682.9996


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