Positive underlying financial performance with healthy cash generation
Strong new customer growth fuelled by Daytona placements
LONDON, UK, 21 November 2013 – Optos plc (LSE: OPTS), the leading medical retinal imaging company, today announces its preliminary results for the year ended 30 September 2013 ("FY13"). All figures are reported in US$, the Company's reporting currency.
Key metrics encouraging for future outlook
- Positive underlying financial performance
- Revenue and other operating income1 was $159.5m (FY12 $196.4m) in line with the recent Pre-Close Trading Update
- 4% growth in underlying revenue2
- Profit before tax and exceptional items at $9.2m (FY12 $26.3m) is slightly ahead of market consensus3
- Operating costs (excluding exceptional items) reduced by 2% to $83.9m following successful completion of the restructuring plan
- Gross margin maintained at 57%4
- Good cash performance with cash flow before acquisition & financing activities generating $10.5m (FY12 $3.1m outflow)
- Net debt reduced by 18% to $39.4m (FY12 $47.9m)
Operational progress in customer base, pipeline and clinical evidence
- Highest ever level of installations of 1,271, with the installed customer base growing 25% to 5,945
- Strong demand for Daytona with 1,145 devices installed this year
- Over 470 200Tx devices installed globally, including into key ophthalmology centres in the US, Japan, Germany and the Middle East
- Two important new corporate contracts signed - OPSM in Australia (a further 250 devices) and Visionworks in the US (100 devices)
- Continued progress from investment in pipeline and product range
- Lotte, our combined ultra-widefield retinal imaging technology with integrated optical coherence tomography (OCT) is progressing well
- Further advancements made on California, our 200Tx upgrade
- Positive clinical results generated through the publication of three key papers
- A Harvard University study demonstrated the extent of diabetic retinopathy in the peripheral retina and the impact on severity of disease
- A comparison of image-assisted versus traditional fundus examination demonstrated the ability of optomap®-assisted examinations to outperform traditional retinal examinations
- A study into ultra-widefield retinal imaging in the management of non-infectious retinal vasculitis provided evidence that more effective detection of active vasculitis leads to earlier treatment and improved patient outcomes
Roy Davis, CEO of Optos, said:
"Following a challenging start to the year, we delivered underlying revenue growth and improved cash generation whilst making good progress with the roll out of Daytona. The 25% increase in our installed customer base - our largest annual increase yet - includes the placement of 1,145 Daytona devices and demonstrates the increasing value of our proprietary technology to eye healthcare professionals globally. With strong sales of Daytona, our new products progressing well, the building body of clinical evidence and a broadened geographical reach, the Board is confident that Optos is well placed to drive sales and profitability in 2014."
- Other operating income represents income from the extension of previously recognised finance leases.
- Underlying revenue growth is calculated by treating all payments receivable in the period from rental contracts as operating leases rather than finance leases.
- Bloomberg estimate.
- Includes other operating income
Roy Davis, CEO
Robert Kennedy, CFO
|Tel: 01383 843 300|
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.
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.
Daytona represents the next generation of Optos ultra-widefield retinal imaging technology, and has been scaled to accommodate smaller office spaces while providing high resolution imaging, and adding new autofluorescence capabilities. Weighing only about 25 kg, Daytona's new, ergonomic body is designed to increase patient comfort, as well as make it easier to correctly position the eye. In addition to the smaller, sleeker design, Daytona features an improved user interface with its intuitive, workflow based software. Daytona also offers "plug-n-play" installation, a modular robust build-design to simplify product support, image review capabilities and electronic image storage options. Daytona was designed to allow the globalisation of the core Optos imaging technology, giving the opportunity to offer the benefits of optomaps® technology to more eyecare professionals and their patients around the world.
The acquisition of OPKO instrumentation in October 2011 brought 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 optomaps® 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.
Our expanded product range now includes ultra-widefield imaging, OCT, visual acuity, perimetry and treatment laser fproducts.
For more information please visit our website www.optos.com.
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.