Pre-Close Trading Statement
30.09.2008
LONDON, UK, 30 September 2008 – Optos plc (LSE: OPTS), the leading medical retinal imaging technology company, is today issuing a pre-close trading statement for the financial year ending 30 September 2008, ahead of the Group’s preliminary results announcement on 4 December 2008.
Revenue is expected to be $100.5-$101.5 million for the full year, representing 16%-17% growth over last year. Expansion of the installed base continued with 3800-3850 devices operating on the Group’s core pay-per-patient business model. Pay-per-patient revenue represented approximately 90% of total revenue generated during the year. Installations on this basis will constitute 96% of the Group’s total installed base at the year end, with the remaining 4% installed on a capital sale basis. Customer contract renewal rates remain strong at 87% for the full year. A rigorous focus on delivering enhanced margins has been maintained which has delivered a very good performance at the operating level, where the Group expects to report strong year over year improvement in profit before tax.
Very good advances were made in the corporate customer segment, particularly in Q4 with 70 new installations into owned practice locations within an existing major US customer chain and another 25 installations into a new Canadian-based retail customer network. Progress within the corporate segment is expected to continue in FY’09. The Group recently entered into an agreement with the University of Pennsylvania through which the Company will provide ultra high resolution imaging support at the cellular level for the gene therapy programmes at The Children’s Hospital of Philadelphia (CHOP). This builds on previous work where the Company’s retinal imaging technology supported a team of CHOP scientists where gene therapy was used to safely restore vision in three young adults with a rare form of congenital blindness. Progress for product certification for the P200MA in Japan continues with regulatory clearance expected in the first half of the 2009 financial year.
Thomas W. Butts, Chief Executive Officer, commented: “This has been a busy and successful year for the Company. Tightened economic conditions lowered discretionary consumer spending and lengthened sales cycles which impacted on our top line growth in the latter part of the fourth quarter, but overall the business performed well over the course of the full year. We have delivered double digit growth in sales and installations in our existing markets, successfully entered into new markets and launched two new retinal imaging platforms. Our technology was used by some of the world’s leading specialists during the year, where it received plaudits for its clinical capabilities in assisting with the treatment of previously incurable blindness and in determining new regimes in the treatment of diabetic patients.”
About Optos plc
Optos plc is a leading medical retinal imaging technology company. Both eye and non-eye diseases often first exhibit in the periphery of the retina. These are very difficult to detect clinically with conventional examination equipment and techniques. Optos' devices produce ultra wide-field, high resolution images of approximately 82% of the retina, something no other device is capable of doing in any one image. The images provide optometrists and ophthalmologists with enhanced clinical information which facilitates the early detection, management and treatment of disorders and diseases evidenced in the retina such as retinal detachments and tears, glaucoma, diabetic retinopathy and age-related macular degeneration. Retinal imaging can also indicate evidence of non-eye or systemic diseases such as hypertension and certain cancers. Optos has a range of medical devices that support different customer segments and patient levels: P200 device is concentrated on wellness screening carried out by optometrists and ophthalmologists in primary care; P200C device is designed to meet the need for more exacting clinical imaging capabilities and standards in secondary care within the ophthalmology market and at optometric practices that are clinically managing a patient base with advanced ocular disease; P200MA device supports retinal specialists, working primarily with a diabetic patient base, in the medical care market through an advanced medical angiography procedure. Optos' technology provides an unequalled combination of wide-field retinal imaging, speed and convenience for the practitioner and patient resulting in more targeted treatment regimes and improved patient outcomes. This can help save sight and save lives. Optos estimates that it is addressing a market opportunity with a combined $4 billion potential.
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.