Pre-Close Trading Statement
31.03.2008
LONDON, UK, 31 March 2008 – Optos plc (LSE: OPTS), a leading medical technology company for the design, development, manufacturing and marketing of retinal imaging devices, is today issuing the following trading statement ahead of the Group’s interim results for the six-month period ended 31 March 2008, which will be announced on 21 May 2008.
Commenting on the Company’s performance for the period, Thomas W. Butts, Chief Executive Officer, Optos plc, said:
“Strong customer contract renewals and revenue growth continued during the period, and are in line with our expectations for delivering an 85% renewal rate and 20%-25% revenue growth at the full year. North America performed well and Europe continued to achieve excellent underlying growth, led by our German business and augmented by steady progress in the UK and entry in our newer European markets.”
Financial and Operating Highlights
Revenue for the half year is expected to be $48.1-$49.1 million, representing an increase of 20%-22% over the $40.2 million reported for the same period last year. Pay-per-patient revenue will represent approximately 91% of the Group’s total income for the period and continues to form the Company’s core business model. Remaining revenue was generated on a capital sales basis, which included sales of the Company’s new P200MA device to retinal specialists. The Group expects to make a profit before tax for the half year, which will represent the fourth consecutive six-month reporting period in which a pre-tax profit has been delivered.
The total number of customer practices operating under the pay-per-patient model will be approximately 3,500 which would represent 20% year over year growth. Contract renewals remained strong at 89% for the period. Installations in the corporate customer segment are expected to be higher during the second half of the year following the announcement that the Company’s P200 device has been added to the Wal-Mart Advanced Instrument Program. The clinical and commercial benefits of installing the device will be promoted to an estimated 2,250 in-store sub-leased primary care optometric practices that are owned and operated by independent optometrists within the Wal-Mart retail network.
The Group continues to have excellent access to credit to support future expansion and can report that the interest rate payable for new vendor financing fell during the period.
New Products
Full commercial launch of the P200MA device took place during the period. Clinically, the P200MA device delivers significant improvement in the diagnosis and management of eye and non-eye disease evidenced in the retina, particularly diabetes. The device opens new global market segments for the Company within the medical care market, where it is estimated that 2.7 million angiography patient procedures are conducted annually in the Company’s existing country markets.
“The P200MA does everything that a conventional system does, including for macular degeneration and other central diseases, but gives you unparalleled peripheral views as well,” said Dr Ivan J. Suňer, Retinal Surgeon, Professor of Ophthalmology, Duke University Eye Center.
Outlook
A recurring revenue model based on longer-term customer contracts will continue to provide reliable and predictable growth. Strong returns are expected in the second half of the year through the Company’s pay-per-patient customer installations within the independent and corporate customer segments and through the new P200MA device servicing the medical market opportunity.
Profit margin expansion will be achieved over the next three years through strategies already in place for increasing patient utilisation in all customer locations, lowering the unit cost of future device placements, leveraging the extended asset life of the devices in the field once fully depreciated and achieving reduced overhead to sales ratios as the business expands.
“We are confident in our overall trading prospects and can re-confirm that the Group’s financial performance and customer contract renewal rate for the full year ended 30 September 2008 are tracking in line with our previously stated guidance,” concluded Mr Butts.
Interim Management Statement (IMS)
The Company will issue its next IMS on 31 July 2008 and not 28 July 2008 as previously announced.
- ENDS -
Enquiries
Optos plc
John McNeil
Company Secretary
+44 (0) 1383 843 337
Maitland
Brian Hudspith
+44 (0)20 7379 5151
Note to Editors
Optos plc is a leading and rapidly growing medical technology company for the design, development, manufacturing and marketing of devices that image the retina, the light-sensitive area at the back of the eye. Optos' platform technology is the Panoramic200 Scanning Laser Ophthalmoscope device - known as the P200. In a quarter of a second the P200 device produces a high resolution image of up to 200 degrees or approximately 82 percent of the retina in a single capture. The image - branded the optomap® Retinal Exam - provides eye care practitioners with clinically useful information that facilitates the early detection of disorders and diseases evidenced in the retina, such as glaucoma, diabetic retinopathy and age-related macular degeneration. Retinal imaging can also indicate evidence of non-eye or systemic diseases such as diabetes, hypertension and certain cancers. Optos' technology provides an unequalled combination of wide-field retinal imaging, speed and convenience for both practitioner and patient and can help save sight and save lives. Optos is incorporated in Scotland under the Companies Act 1985 with registered number SC139953. The Company maintains its Registered Office at Queensferry House, Carnegie Business Campus, Dunfermline, Scotland KY11 8GR United Kingdom.
Forward-Looking Statements
Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates and projections about its industry, its beliefs and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the Company's control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.