Interim Results for the six months to 31st March 2013
Transitioning in FY13 from renewals to new customers


LONDON, UK, 16th May 2013 – Optos plc (LSE: OPTS), a leading medical retinal imaging company, today publishes its interim results for the first half of its financial year ending 30 September 2013 (H1 FY13).  All figures are reported in US$ and are unaudited.

      Six months 
to 31 March 2013
H1 2013
Six months 
to 31 March 2012
H1 2012 
Figures are unaudited
Total revenue(1)
$73.0m $86.2m ($13.2m)
  Operating lease & variable revenues from 
device rentals
$11.0m $31.6m ($20.6m)
  Device sales - outright $31.8m $22.7m $9.1m
  Device sales under finance leases $17.1m $26.0m ($8.9m)
  Service & warranty revenues $13.1m $5.9m $7.2m
Gross profit(1)   $42.8m $49.8m ($7.0m)
Operating (loss)/profit before exceptional items ($0.6m) $6.8m ($7.4m)
Net finance income / (charge) $1.3m $0.1m $1.2m
Profit before tax before exceptional items  $0.7m $6.9m ($6.2m)
Profit after tax before exceptional items  $0.4m $4.3m ($3.9m)
Exceptional items $0.0m ($1.3m) $1.3m
Profit after exceptional items and tax  $0.4m $3.5m ($3.1m)
Net debt (cash less debt & lease finance liabilities) ($55.8m) ($48.2m) ($7.6m)
1. Revenue and gross margin include other operating income



Today we report headline revenue (1) for H1 FY13 of $73.0m, down 15% from $86.2m in H1 FY12 (up 6% on an underlying (2) basis).  As indicated in our trading update of 20th March 2013, second quarter (and therefore first half) FY13 trading was softer than expected.  This reflected the inherent difficulty in forecasting growth trajectories and timing of sales during the initial launch of a new product such as Daytona; and lower than expected sales due to macro-economic factors, notably in Europe.  The overall strategy for the Company remains unchanged.

During H1 FY13 we:

  • Significantly increased the number of new customers;
  • Grew the installed base of ultra-wide field (“UWF”) devices;
  • Increased sales from markets outside North America;
  • Moved closer to commercialisation of the next generation product that combines UWF and ocular coherence tomography (“OCT”).

Full market launch of Daytona began in Q4 FY12.  400 devices have been sold in H1 FY13, bringing the global installed base to 729 at 31st March 2013.  As previously disclosed, in common with most new product launches, initial customer feedback resulted in early software upgrades and enhancements being made in Q2 FY13, which slowed down the Daytona roll out.  These specific issues are now resolved and momentum is being re-established.

Financial Highlights- underlying revenue increases by 6%

  • Total H1 FY13 revenue was $73.0m (H1 FY12: $86.2m) reflecting fewer rental renewal contracts, and softer sales of Daytona and 200Tx than expected. 
    • Outright (or “capital”) sales increased by 40% to $31.8m from $22.7m in H1 FY12, with the sale of 413 ultra wide-field devices.
    • As expected, operating lease revenue fell to $11.0m from $31.6m in H1 FY12 as the remaining rental agreements under operating lease continue to be renewed onto finance leases (621 operating leases remaining; 842 at start of FY13). 
    • Service revenue was $13.1m, up from $5.9m in H1 FY12.
  • Underlying revenue was up 6% due to the high level of capital sales in the period.
  • Good control of operating expenses; these were broadly flat period-on-period at $43.4m (H1 FY12: $43.0m, pre-exceptional).  
  • Profit before tax was $0.7m (H1 FY12: $6.9m pre-exceptional).
  • Net debt at the end of H1 FY13 was $55.8m, up from $47.9m at end FY12 and up from $48.2m at end H1 FY12.  

Post Period – focused restructuring plan to accelerate growth

  • Restructuring plan announced on 1st May 2013, with an expected cost of $2.0m in H2 FY13. It is expected to deliver annual savings of approximately $3.5m-$4.0m from 1st October 2013 and to position the business for faster growth and closer customer service.

Operational Highlights- net increase of 492 new customers and good international growth

  • The installed base of ultra wide-field devices has increased 9% to 5,130 in the six months to 31st March 2013 (end FY12 4,689 units; H1 FY12 4,404).
  • Increase of 492 new customers in H1 FY13 (H1 FY12: 246).
  • Improvement in de-install rate in the first half (1% H1 FY13 versus 2% H1 FY12).
  • The ratio of rental to capital customers by number at end H1 FY13 is now 63% to 37% (77% and 23% at end H1 FY12).
  • International (non-North American) markets contributed first half revenue of $23.5m, 32% of the total (H1 FY12: $19.0m and 22%), growing at 24% over H1 FY12. 
  • Continued strong progress with clinical evidence demonstrating the value of ultra wide-field imaging. 
  • Continued development of exciting new product development roadmap including the integrated UWF and OCT device. 

Daytona- 400 units placed in period

  • 400 Daytona units installed in H1 FY13; total since launch to 31st March 2013, 729. 
  • All software issues highlighted in our trading update of 20th March 2013 have been resolved. 
  • We received a further order for 250 units from OPSM, Australian’s leading eye care provider, giving further validation and endorsement of the Daytona technology. 
  • Current Daytona order book circa 450 units including the majority of the new order from OPSM. 
  • The unit production cost of Daytona has been reduced, with further planned reductions, based on volume and supply chain management, expected to flow through in FY14. 

Outlook FY13

At the time of our prelims in November 2012, shortly after the full launch of Daytona, we gave guidance of high single digit revenue growth in an attempt to convey the growth trajectory of the business.

However, as indicated in our previous trading update, we have found during H1 FY13 that the adoption rate of a new medical device like Daytona in the initial post-launch phase is difficult to forecast with precision.  Forecasting is also complicated by an inherent lack of prior visibility on the mix of new installs because the customer choice between a capital sale and a rental is only made at the point of sale.  New customer growth – whilst strong and above last year’s level - is not yet filling the gap left by lower renewal opportunities as rapidly as projected earlier.

We remain encouraged by the endorsement and level of interest in Daytona, exemplified by the completion of a second order from OPSM.  We have also had a positive start to the trade show season with over 220 orders placed with the Vision Source group.

Guidance for the full year is that top line revenue will be lower than FY12. As normally occurs, we expect that H2 sales will exceed H1, especially given the second OPSM order which has already been secured.  We expect to place about 1,000 – 1,200 units of Daytona in the year.  Cost control will be maintained, with savings from the new organisation structure driving further cost reductions in FY14. Operating profit will also be below 2012 and net debt will remain above the level at 30th September 2012.

Roy Davis, CEO, commented:

“While our full year outlook is softer than we had hoped, we have made important recent strategic and operational progress and firmly believe that the longer term prospects for Optos remain strong. We have significantly increased both the number of new customers and our installed base of devices whilst growing sales from markets outside of North America. Our R&D pipeline is also progressing well and we remain excited by its potential. I am confident that these trends, together with the steps we are taking to reduce both Daytona production costs and general operating overhead, will translate into an improved performance in H2 and beyond.”


  1. Revenue and gross margin include other operating income
  2. Underlying revenue treats all finance leases as if they were operating leases


Optos plc

Roy Davis, CEO
Louisa Burdett, CFO 

Tel: 01383 843 300

FTI Consulting
Ben Atwell / Mo Noonan / Simon Conway

Tel:  020 7831 3113

Note to Editors
: Images available upon request

About Optos Plc
Optos plc has the vision to be The retina company.  We aim to be recognised as a leading provider of devices and solutions to eyecare professionals for improved patient care.  Optos' core devices produce ultra widefield, high resolution digital images (optomaps®) of approximately 82% of the retina, something no other device is capable of doing in any one image.  Our recent acquisition of OPKO instrumentation brings the group optical coherence tomography (“OCT”) diagnostic devices and optical ultrasound scanners, used in the diagnosis and management of eye disease and conditions.

Optos’ widefield retinal imaging technology, combined with the specific data that can be derived from OCT images, has the potential to offer ophthalmologists and optometrists the most powerful tools for disease diagnosis and management.  The optomap images provide 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.  OCT delivers an image that shows a three dimensional, cross-sectional view of the retina in any particular area, typically in the central pole area of the retina around the optic nerve and macula and is used to detect the presence of and understand the severity of disease, determine treatment approaches and monitor post-treatment effect.

Optos has a range of imaging devices that support different customer segments and patient levels: the P200 and 200Dx devices are concentrated on wellness screening carried out by optometrists and ophthalmologists in primary care; the P200C devices are 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; and the P200MA and 200Tx devices supports ophthalmologists and retinal specialists in the medical care market. We have recently introduced Daytona, our next generation imaging device. Daytona is a desk top device with multiple imaging modalities and was designed to enable us to globalise our ultra widefield technology.  Our expanded product range includes visual acuity, perimetry and treatment laser products

For more information please visit our website

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.

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