Opsens reports Q3 results and appoints new president for Opsens Solutions

QUEBEC CITY, July 4, 2012 /CNW Telbec/ - Opsens Inc. ("Opsens") (TSXV: OPS) today released results for its three- and nine-month periods ended May 31, 2012.

Highlights

  • New President for Opsens Solutions;
  • Nine-month revenues at $7,046,000 from $4,898,000, a 44% increase year over year;
  • Sales for the first three quarters of 2012 exceeded sales for the entire year 2011.

Oil and Gas

Sales for the oil and gas division were lower in Q3 2012 with $1,594,000 compared with $1,900,000 for the comparative period in 2011. Q3 2011 included a non-recurring contract in COEnhanced Oil Recovery from the Petroleum Technology Research Centre. Without this non-recurring event, the oil and gas sales for Q3 2012 actually reflect a continued growth with increased sales of OPP-Ws.

We are pleased to announce that Thomas J. Keegan has been named President of Opsens Solutions.

Tom has 20 years experience in the oil and gas and nuclear industries, 17 of which were spent providing technical and business leadership at the senior managerial level. During the course of his career, he has implemented efficient business practices, successfully introduced new oil and gas products to domestic and international markets and improved financial performance.

Mr. Keegan began his career as a Lead Engineer with the Atomic Weapons and Research Establishment of the Ministry of Defense in the UK.  In 1990, he moved in Oil & Gas instrumentation and most recently became Managing Director for Canada Tech Well Monitoring where he directed senior managers, implemented efficient business practices which translated into cost reductions, introduced new downhole instrumentation and increased product awareness leading to international presence and growth.

"Bringing him in to enhance Opsens Solutions' growth and technology development will enable Opsens Solutions to better serve its increasing customer base in the oil & gas business", said Pierre Carrier, Chairman of the Board and President for Opsens Inc.

"The Company is positioned for significant growth. I look forward to working with our existing customer base and expanding our markets to solidify Opsens Solutions' presence and deliver on our promise to provide value added monitoring solutions to our customers," said Tom Keegan.

Opsens Medical - Product Development and Partnership discussions ongoing

Opsens continues to progress on all fronts in the development of its product line for cardiologists to use in the measurement of Fractional Flow Reserve (« FFR »). Opsens is developing the OptoWire, a guide wire incorporating its patented fiber optic pressure sensor, designed to navigate through the human body to reach lesions with ease. In addition, our optical sensing technology, immune to fluids, will allow doctors to connect and reconnect the guide wire, while maintaining reliability of the measurement.

Opsens continues to work aggressively toward commercialization

Partnership discussions are ongoing to better enable the OptoWire's access to the market. We expect timing to be favorable in the short-term as several interventional cardiology companies want to add FFR to their offering, to profit from this new, fast growing market.

Fractional flow reserve (FFR) is an index of the functional severity of coronary stenoses calculated from pressure measurements taken before and after a narrowing of arteries discovered during coronary angiography.

Financial results - Three-month period ended May 31, 2012

The Company recorded $2,174,000 in revenues for the three-month period ended May 31, 2012, compared with $2,415,000 for the same period in 2011. The lower sales were offset by a higher gross margin rate and consequently gross margin increased from $774,000 in 2011 to $859,000 for 2012.

The net loss for the quarter ended May 31, 2012 was $357,000, compared with a loss of $378,000 for the same period ended May 31, 2011. The decrease in the net loss is primarily reflective of a higher gross margin and a decrease in administrative expenses.

Financial results - Nine-month period ended May 31, 2012

The Company recorded revenues of $7,046,000 for the nine-month period ended May 31, 2012, compared with $4,898,000 for the same period a year earlier, a 44% increase. The upsurge in sales for the nine-month period ended May 31, 2012, was primarily generated from a growth of approximately $930,000 in oil and gas.

For the nine-month period ended May 31, 2012, net loss totalled $1,291,000, compared with $1,751,000 a year earlier. The decrease in the net loss for the nine-month period ended May 31, 2012, compared with the same period in 2011 mostly reflects the increase in the gross margin.

 
(In thousands of Canadian dollars, except data per share)  Three-month period ended
May 31, 2012
Three-month period ended
May 31, 2011
Nine-month period ended
May 31, 2012
Nine-month period ended
May 31, 2011
  $ $ $ $
         
Sales 2,174 2,415 7,046 4,898
Cost of sales 1,315 1,641 4,711 3,523
Gross margin 859 774 2,335 1,375
Administrative expenses 553 588 1,810 1,552
Marketing expenses 304 188 747 459
Research and development expenses 418 418 1,186 1,152
Financial expenses (income) (59) (42) (117) (37)
  1,216 1,152 3,626 3,126
         
Loss before income taxes (357) (378) (1,291) (1,751)
Income taxes - - - -
Net loss (357) (378) (1,291) (1,751)
Basic loss per share (0.01) (0.01) (0.03) (0.04)
Diluted loss per share (0.01) (0.01) (0.03) (0.04)

Grant of stock options

Opsens' Board of Directors also authorized yesterday the grant of a total of 714,000 stock options, of which 520,000 were granted to directors and officers, as provided in the Opsens' stock option plan adopted by the shareholders on January 16, 2012.

Under the provisions of Opsens' stock option plan, each stock option granted entitles the holder to subscribe for one Opsens' common share until July 4, 2017 and at a price equal of $0.20 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 or Louis Laflamme, CA, Chief Financial Officer, 418.682.9996


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