Opsens Reports Results for 2016 - Record Total Revenues Driven by Tenfold Increase in FFR Sales

QUEBEC CITY, Nov. 16, 2016 /CNW Telbec/ - Opsens Inc. ("Opsens") (TSXV: OPS) (OTCQX: OPSSF) today reported its results for the year ended August 31, 2016.

HIGHLIGHTS

  • The OptoWire II, Opsens' guidewire to measure Fractional Flow Reserve ("FFR") has been authorized for sale in the U.S., Europe, Japan and Canada;
  • FFR product sales
    • FFR revenues were $2.1 million in the fourth quarter of 2016 compared with $0.3 million in the corresponding quarter of 2015;
    • FFR revenues were $5.2 million for fiscal 2016 compared with $0.5 million in fiscal 2015;
  • The performance of the OptoWire was highlighted in Circulation Journal, a recognized medical publication;
  • Opsens extended its range of applications with 510(k) clearance from the U.S. Food and Drug Administration ("FDA") for the OptoMonitor II, a monitor combining the ability to measure FFR along with measuring intravascular and intracatheter pressure.

EXECUTING GROWTH STRATEGY

Opsens' commercial channels are demonstrating success from quarter to quarter, with Q4 revenues up more than 600% compared with the fourth quarter of the previous year. "We are confident that the distinctive features of the OptoWire, widely recognized by key opinion leaders in interventional cardiology, will allow us to capitalize on the rapidly growing FFR market," said Louis Laflamme, President and Chief Executive Officer of Opsens.

"Our move into a modern facility and the ongoing production process improvement will enhance our competitiveness and our ability to meet the growing demand for our products. We are taking the necessary measures to become a disruptive player in the industry. For 2017, we are targeting significant gains in global market share," concluded Mr. Laflamme.

OPTOWIRE'S PERFORMANCE HIGHLIGHTED IN A MEDICAL JOURNAL

The performance of Opsens' OptoWire was highlighted in the Circulation Journal, the official journal of the Japanese Circulation Society. The article reports that the use of approximately 100 OptoWire units was performed without any drift of the measurement and also mentions the shortcomings in the performance of competitive products in terms of reliability of the measurement.

FINANCIAL RESULTS - YEAR ENDED AUGUST 31, 2016

Opsens' revenues were higher for the year ended August 31, 2016 at $9.6 million compared with $8.7 million in 2015. This revenue increase reflects higher revenues in FFR of $4.7 million, partly offset by a decrease of $3.4 million from non-recurring revenues recorded in 2015 from distribution rights.  

 




(In thousands of Canadian dollars, except for information per share)

Year Ended
August 31, 2016

Year Ended
August 31, 2015

$

$




Sales

9,601

8,665

Cost of sales

7,970

3,921

Gross margin

1,631

4,744




Administrative expenses

3,685

2,616

Sales and marketing expenses

3,694

1,501

R&D expenses

2,744

2,303

Financial expenses (revenues)

57

(1)

Change in fair value of embedded derivative

733

73

Impairment of assets

-

796


10,913

7,288




Loss before income taxes

(9,282)

(2,544)




Current income tax expense

-

340

Net loss and comprehensive loss

(9,282)

(2,844)




Net loss per share – Basic

(0,14)

(0,05)

Net loss per share – Diluted

(0,14)

(0,05)

 

FINANCIAL RESULTS FOR THE THREE MONTH PERIOD ENDED AUGUST 31, 2016

In the fourth quarter of fiscal 2016, consolidated sales reached $3.0 million compared with $1.1 million for the same period in 2015, an increase of 173%, driven mainly by a growth in FFR sales, which amounted to $2.1 million for the fourth quarter of 2016 compared with $0.3 million in 2015.

For the three-month periods ended August 31, 2016 and 2015, the gross margin was stable at negative $0.1 million. In 2016, gross margin was affected by higher production losses due to the arrival a high number of employees that needed to be trained and other ramp up costs. In addition, non-recurring inventory write-offs in the oil and gas activities of $0.5 million also impacted gross margin. Management expects that production yield for fiscal year 2017 will increase to reach higher targeted level given the improvements in operations that are already in effect.

GRANT OF STOCK OPTIONS

Opsens' Board of Directors authorized, on November 15, 2016, the grant of 810,000 stock options, of which 100,000 were granted to a Director, as provided in Opsens' stock option plan adopted by shareholders on January 18, 2016.

Under the terms of the stock option plan, each option granted entitles the holder to purchase one common share of Opsens no later than November 14, 2021 at a price equal $1.55 per share. The stock options granted will vest over a period of four years at 25% per year, the first portion vesting at the end of the first year following the grant of options, with the exception of stock options granted to the Director that allows the holder to subscribe immediately for common stock of Opsens.

About Opsens Inc. (www.opsens.com or www.opsensmedical.com)

Opsens focuses mainly on the measure of FFR in interventional cardiology. Opsens offers an advanced optical-based pressure guidewire (OptoWire) that aims at improving the clinical outcome of patients with coronary artery disease. Opsens is also involved in industrial activities. The Company develops, manufactures and installs innovative fibre optic sensing solutions for critical applications, such as the monitoring of oil wells and other demanding industrial applications.

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, 418.781.0333; Louis Laflamme, CPA, CA, Chief Executive Officer, 418.781.0333

RELATED LINKS
www.opsens.com

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