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LONDON, UK, 23 January 2009 - Optos plc (LSE: OPTS), a leading medical retinal imaging technology company, is today publishing its Interim Management Statement (IMS) as required by the UK Listing Authority Disclosure and Transparency Rules.
- $23.6 million in Group revenue (Q1-08: $22.7M)
- 96% of revenue generated from core pay-per-patient business model (Q1-08: 95%)
- 3,811 customers operating on the pay-per-patient model (Q1-08: 3,341)
- 78% customer contract renewal rate for the period (Q1-08: 88%)
The Group reported at its preliminary results on 4 December 2008 that it expected 2009 to be a year in which general economic conditions would challenge all businesses.
In the three month period to 31 December 2008, lower discretionary consumer spending and increased levels of caution amongst both existing and prospective customers resulted in revenue growing 6% within the core pay-per-patient business and 4% overall versus the same time last year. Revenue per site was down 9% from the same time last year, reflecting an 8% reduction in North America and a foreign exchange impact from the European business. New customer additions continued, with the total number of customers operating on the pay-per-patient model growing by 14% to 3,811 compared to the same time last year. However, a lower rate of customer contract renewals at the end of the contract term resulted in the total closing pay-per-patient installed base remaining relatively flat compared to the beginning of the period.
The Company continues to receive strong support from its vendor finance partners and although rates have increased during the period they remain at levels similar to the Company's historical weighted average effective borrowing rate. The Company has traditionally operated with two sources of vendor financing. In the latter part of 2008 a decision was taken to add a third funding provider as the economy was contracting. One of these providers has recently reviewed its commitment to medical device vendor financing in general and has decided to no longer fund new leasing arrangements. The Company remains comfortable with its ability to fund planned installations in the future either on a self-funding or vendor financing basis.
Given the current economic climate and underlying business performance, revenue generated by the Company's core pay-per-patient model is the key focus for sustained growth. Emphasis has been placed on leveraging the existing asset base of customer locations through increasing utilisation and revenue per site at each practice. New customer installations will be streamlined to concentrate on those practice locations that are large enough in patient footfall to ensure that the device operates at usage levels that deliver enhanced margins for the customer and the Company. Furthermore, the Company is managing its cost base in an appropriate manner to ensure it is minimised in the current environment.
Roy Davis, Chief Executive Officer, will provide revenue guidance for the full year ending 30 September 2009 and will detail his plans for maximising the potential of the Company's leading medical retinal imaging technology at the Group's Annual General Meeting ("AGM") being held on 26 February 2009 at the offices of Maclay Murray & Spens LLP, One London Wall, London EC2Y 5AB at 11h00 GMT.
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John McNeil, Company Secretary
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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.
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.