QUEBEC CITY, April 19, 2017 /CNW Telbec/ - Opsens Inc. ("Opsens" or the "Company") (TSX: OPS) (OTCQX: OPSSF) today reported its results for the second quarter ended February 28, 2017.
HIGHLIGHTS
- Growth in sales of products to measure Fractional Flow Reserve ("FFR") in Q2 2017 at $3,117,000 compared with $1,252,000 in Q2 2016, an increase of $1,865,000 or 149%;
- Growth in FFR revenues in first half of 2017 at $5,860,000 compared with $2,145,000 for the same period in 2016, an increase of $3,715,000 or 173%;
- Growth in consolidated revenues for Q2 2017 at $4,808,000 compared with $2,741,000 for Q2 2016, an increase of $2,067,000 or 75%;
- Closing of a $15 million equity financing;
- Opsens graduates to the Toronto Stock Exchange ("TSX"), Canada's largest stock market.
IMPLEMENTATION OF THE GROWTH STRATEGY
Opsens' commercial networks continue to demonstrate success from quarter to quarter. FFR revenues for the first half of 2017 are already higher than FFR revenues recorded for the entire previous year. "We are confident that the OptoWire's distinctive features, which are widely recognized by key opinion leaders in interventional cardiology, will allow us to capitalize on the fast-growing FFR market," said Louis Laflamme, Opsens' President and Chief Executive Officer.
"The improvement in our production processes over the past few months has allowed us to increase our competitiveness and our ability to meet the growing demand for our products. Opsens' cash position now stands at approximately $16 million, giving the Company the flexibility to execute its commercialization plan worldwide, including the expansion of marketing of our FFR products," added Laflamme.
FINANCIAL RESULTS FOR THE THREE-MONTH PERIOD ENDED FEBRUARY 28, 2017 - SALES GROWTH
In the second quarter, consolidated sales increased by 75%, supported by FFR sales growth. This increase was partially offset by lower revenues of $582,000 in the industrial sector.
Gross margin increased to $2,254,000 for the quarter ended February 28, 2017 compared with $767,000 for the same period last year.
Net loss decreased to 1,001,000 for the three-month period ended February 28, 2017 compared with a net loss of $1,523,000 for the corresponding period last year.
During the quarter, licensing revenues of $1,007,750 (US$750,000) related to a technical milestone payment received were recorded.
OPSENS' SHARES NOW TRADING ON CANADA'S LARGEST STOCK EXCHANGE
"This is an important achievement for Opsens and its shareholders," said Laflamme. "The TSX is Canada's largest stock exchange and one of the top 10 in the world. This move will give us greater market visibility and access to a wider and more diversified range of international and institutional investors. This decision will also help strengthen our position in the investment community as our global penetration grows in interventional cardiology," added Laflamme.
| (In thousands of Canadian dollars, except for information per share) |
Three-Month February 28, |
Three-Month February 29, |
Six-Month February 28, |
Six-Month February 29, |
|
| $ |
$ |
$ |
$ |
||
| Revenues |
|||||
| Sales |
3,710 |
2,650 |
7,363 |
4,269 |
|
| Licensing |
1,098 |
91 |
1,190 |
183 |
|
| 4,808 |
2,741 |
8,553 |
4,452 |
||
| Cost of Sales |
2,554 |
1,974 |
5,108 |
3,202 |
|
| Gross margin |
2,254 |
767 |
3,445 |
1,250 |
|
| Administration expenses |
862 |
815 |
1,750 |
1,548 |
|
| Sales and marketing expenses |
1,562 |
773 |
3,332 |
1,249 |
|
| R&D expenses |
814 |
625 |
1,550 |
1,309 |
|
| Financial expenses (revenues) |
(29) |
54 |
123 |
96 |
|
| Change in fair value of embedded derivative |
46 |
23 |
232 |
229 |
|
| 3,255 |
2,290 |
6,987 |
4,431 |
||
| Net loss and comprehensive loss |
(1,001) |
(1,523) |
(3,542) |
(3,181) |
|
| Net loss per share - Basic |
(0.01) |
(0.02) |
(0.05) |
(0.05) |
|
| Net loss per share – Diluted |
(0.01) |
(0.02) |
(0.05) |
(0.05) |
|
GRANT OF STOCK OPTIONS
On April 18, 2017, the Board of Directors authorized the grant of 225,000 stock options, as provided by Opsens' stock option plan adopted by shareholders on January 24, 2017.
Under the terms of the Stock Option Plan, each of the options granted entitles the holder to purchase one common share of Opsens no later than April 17, 2022 at a price equal to $1.49 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.
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 nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
SOURCE OPSENS INC.
Thierry Dumas, CPA, CA, Chief Financial Officer, 418.781.0333; Louis Laflamme, CPA, CA, Chief Executive Officer, 418.781.0333
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