QUEBEC CITY, Nov. 27, 2012 /CNW Telbec/ - Opsens Inc. ("Opsens") (TSXV: OPS) today released results for the year ended August 31, 2012.
Highlights for year ended August 31, 2012
- Revenue rose to $8.5 million in fiscal 2012 from $6.0 million a year earlier, a 41% increase.
- Revenue growth of close to 50% in the oil and gas sector.
- Opsens' OptoWire for Fractional Flow Reserve ("FFR") has entered the validation stage.
- Opsens well-positioned financially to continue technology development.
Recent highlight
- Signing of a $5.0 million agreement for distribution and other rights to Opsens' FFR products for Japan, Korea and Taiwan with an Asian medical device company.
Opsens has maintained rapid growth in its consolidated sales over recent years. This growth reflects targeted markets' acceptance of Opsens products and technology, especially in the oil and gas market. With its optical sensor technology, Opsens can offer highly accurate products to measure pressure and temperature in harsh environments. In the oil and gas market, Opsens' downhole sensors contribute to oil production optimization and steaming control. For the medical market, Opsens continues progress towards the release of its first medical instrumentation product, the OptoWire, to measure FFR to help cardiologists in the treatment of cardiac lesions. "The recent signing of a partnership agreement in Asia with an Asian medical device company is a good indication of the types of opportunities we are pursuing," said Pierre Carrier, President and Chief Executive Officer.
Oil and gas - Strong Growth
Opsens' wholly-owned oil and gas instrumentation subsidiary, Opsens Solutions, continues to deliver strong revenue growth. Market penetration of Opsens' pressure and temperature sensor, the OPP-W, to Alberta's Steam Assisted Gravity Drainage ("SAGD") market, continues. Opsens Solutions is also active in the instrumentation of SAGD observation wells, providing fast and efficient service for well instrumentation equipment. The SAGD industry continues to grow rapidly, with production expected to increase dramatically over the next decade.
Medical Instrumentation - OptoWire for FFR now in validation stage
The FFR market has experienced compounded annual growth exceeding 35% over the last several years. Opsens has embedded its miniature fiber optic pressure sensor into an innovative guide wire designed to navigate through the human vasculature to reach lesions with ease. Opsens' FFR product is providing technical advantages that will enable Opsens to capture market shares.
Opsens' OptoWire is now in the validation stage for a commercial release planned in the fiscal year beginning on September 1, 2013.
Compelling research taking FFR practice from marginal to mainstream
Cardiologists are increasingly performing FFR measurement after two studies, FAME I and FAME II, demonstrated that FFR-guided therapy reduces mortality by 30% and reduces costs.
A current trend in the U.S. and globally in the healthcare industry is requiring doctors to demonstrate appropriateness of treatment. Since FFR is a quick and economical procedure to justify implantation of stents its practice could, in the short term, become more of a requirement than an option when a cardiologist selects a treatment for patients who are suffering from coronary stenoses.
Year ended August 31, 2012
Opsens reported revenue of $8,462,000 for the year ended August 31, 2012, compared with $6,005,000 in 2011, a 41% increase. Sales in the oil and gas sector totalled $6,300,000, compared with $4,200,000 for 2011, a growth of close to 50%.
Outlook
Opsens expects Opsens Solutions to continue to grow rapidly as its technology and service offering get better accepted in the SAGD industry. Despite strong competitors in the well instrumentation market segment, with improving market acceptance of Opsens' technology, and rapid growth in the sector overall, Opsens Solutions is very well positioned for the future.
Opsens is very encouraged by the recent Asian distribution agreement for the FFR, which currently accounts for less than 10% of the world market for FFR technology. Continued development and regulatory approvals for Opsens' Optowire should pave the way for commercial penetration of the large and high-value North American and European markets.
| (In thousands of Canadian dollars, except for information per share) | Year Ended August 31, 2012 |
Year Ended August 31, 2011 |
Year Ended August 31, 2010 |
||||||
| $ | $ | $ | |||||||
| Sales | 8,462 | 6,005 | 5,281 | ||||||
| Cost of sales | 5,722 | 4,157 | 3,187 | ||||||
| Gross margin | 2,740 | 1,848 | 2,094 | ||||||
| Administrative expenses | 2,304 | 2,204 | 1,742 | ||||||
| Marketing expenses | 929 | 659 | 904 | ||||||
| R&D expenses | 1,534 | 1,543 | 1,233 | ||||||
| Financial income | (97) | (89) | (41) | ||||||
| Gain on disposal | - | - | (2,375) | ||||||
| 4,670 | 4,317 | 1,463 | |||||||
| Profit (Loss) before income taxes | (1,930) | (2,469) | 631 | ||||||
| Income taxes | - | - | - | ||||||
| Net Profit (Net loss) | (1,930) | (2,469) | 631 | ||||||
| Net Profit (Net loss) per share - Basic | (0.04) | (0.05) | 0.01 | ||||||
| Net Profit (Net loss) per share - Diluted | (0.04) | (0.05) | 0.01 | ||||||
Grant of stock options
Opsens' Board of Directors authorized, yesterday, the grant of a total of 80,000 stock options to four Directors, as provided by 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 to one Opsens' common share at the latest on November 26, 2017 and at a price equal to 0.24$ per share. The stock options granted to the Directors entitle the holder to subscribe immediately to Opsens' common shares.
About Opsens Inc. (www.opsens.com)
Opsens is a leading developer, manufacturer, supplier and installer of a wide range of fiber optic solutions based on proprietary patented technologies for the measurement of pressure, temperature and other parameters. The qualities of our sensors allow us to offer measuring instruments that are effective and durable in extreme conditions. Opsens is using its competitive advantages to focus primarily on two strong growth markets: oil and gas and FFR medical instrumentation.
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.
Pierre Carrier, President and Chief Executive Officer, 418.682.9996
Louis Laflamme, CPA, CA, Chief Financial Officer, 418.682.9996
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