2024-05-07 08:00:00 CEST
2024-05-07 08:00:20 CEST
REGULATED INFORMATION
Optomed Oyj - Interim report (Q1 and Q3)
Optomed Plc: Interim Report, January - March 2024
Optomed Plc Stock Exchange Release 7 May 2024 at 9.00, Helsinki
Optomed Plc: Interim Report, January - March 2024
January - March 2024
· Revenue decreased by 4.4 percent to EUR 3.3 (3.5) million.
· Devices segment revenue increased by 0.1 percent to EUR 0.9 (0.9) million.
· Software segment revenue decreased by 5.9 percent to EUR 2.4 (2.6) million.
· EBITDA and adjusted EBITDA amounted to EUR -0.6 (-0.5) million corresponding
to -26.3 (-14.8) percent of revenue.
· Outlook unchanged: Optomed expects its full year 2024 revenue to grow
compared to 2023.
· Optomed Aurora with AEYE-DS AI has successfully received FDA clearance after
the review period.
· Discussions with a prominent eye hospital and private equity fund to
establish a joint venture for eye screening services in China.
Key figures
EUR, thousand Q1/2024 Q1/2023 Change, % 2023
Revenue 3,327 3,478 -4.4% 15,100
Gross profit * 2,213 2,476 -10.6% 10,292
Gross margin % * 66.5% 71.2% 68.2%
EBITDA -648 -513 -26.3% -1,781
EBITDA margin *, % -19.5% -14.8% -11.8%
Adjusted EBITDA * -648 -513 -26.3% -1,470
Adjusted EBITDA margin -19.5% -14.8% -9.7%
*, %
Operating result -1,191 -1,043 -14.2% -3,974
(EBIT)
Operating margin -35.8% -30.0% -26.3%
(EBIT) *, %
Adjusted operating -1,191 -1,043 -14.2% -3,663
result (EBIT) *
Adjusted operating -35.8% -30.0% -24.3%
margin (EBIT margin)
*, %
Net profit/ loss -1,090 -1,157 5.8% -4,441
Earnings per share -0.06 -0.08 15.8% -0.27
Cash flow from -515 -440 -17.1% -615
operating activities
Net Debt -2,585 -2,136 -21.0% -3,768
Net debt/ EBITDA (LTM) 1.3 1.4 2.1
*
Net debt/ Adjusted 1.6 1.4 2.6
EBITDA (LTM) *
Equity ratio * 69.5% 64.7% 70.0%
R&D expenses personnel 299 283 5.6% 1,280
R&D expenses other 144 163 -11.7% 644
costs
Total R&D expenses 443 446 -0.7% 1,924
*) Alternative performance measures, see section Alternative Performance
Measures for definitions and calculations.
Optomed presents Adjusted EBITDA and Adjusted operating result as alternative
performance measures to enhance comparability of business performance between
reporting periods. In 2023, items affecting comparability amounted to EUR 311
thousand and related to increased credit risk with respect to an overdue trade
receivable from a customer in China.
CEO Review
I am pleased to announce that Optomed Aurora, equipped with AEYE-DS AI
technology, has received FDA clearance, a pivotal achievement in our company's
history. This approval marks the introduction of the first handheld AI fundus
camera for immediate detection of diabetic retinopathy in the U.S., establishing
a new benchmark in diabetic eye care. Our solution has shown unparalleled
performance, achieving 92-93% sensitivity and 89-94% specificity in two
comprehensive studies, with a remarkable 99% imageability rate. Notably, our
technology simplifies the diagnostic process by using just a single image from
each eye. This achievement comes from our diligent collaboration with our
esteemed partner AEYE Health.
Turning to our financial performance for the first quarter, while we fell
slightly short of our expectations, particularly in the software segment, our
full-year outlook remains positive. Notably, we received promising customer
orders from China during the quarter, suggesting potential growth in that
region. We've also reevaluated our strategy in China and are presently engaged
in discussions with a prominent eye hospital and private equity fund to
establish a joint venture for eye screening services, aiming for implementation
in either Q2 or Q3. The business model for this venture will be a recurring
revenue model, ensuring sustainability and long-term success.
Additionally, we successfully halted the decline in our OEM business and resumed
our growth trajectory. Despite facing challenges, our team's dedication and
strategic execution have yielded excellent outcome as two of our main strategic
goals were achieved. Additionally, we are delighted to share that we have
emerged victorious in a public tender within the software segment which we have
discussed in our previous reports, a result to the quality and competitiveness
of our offerings.
As we look ahead, we are energized by this momentum and remain committed to
delivering value to our shareholders. We sincerely thank you for your continued
support and confidence in Optomed.
Juho Himberg
CEO
Outlook 2024
Optomed expects its full year 2024 revenue to grow compared to 2023.
Telephone conference
A telephone conference for analysts, investors and media will be arranged on 7
May 2024 at 11.00 EET, (10.00 CET). The event will be held in English. The
presentation material will be available at www.optomed.com/investors 10.00 EET
at the latest.
The participants are requested to register for the call-in advance by email to
sakari.knuutti@optomed.com.
Please see the call-in numbers below:
FI +358 9 856 263 00
SE +46 8 505 218 52
UK +44 20 3321 5273
US +1 646 838 1719
FR +33 1 70 99 53 92
The conference id is 398 980 747 974#
Please note that by dialing into the conference call, the participant agrees
that personal information such as name and company name will be collected.
Group performance
January - March 2024
In January - March 2024, Group revenue decreased by 4.4 percent to EUR 3,327
(3,478) thousand. Devices segment had a slow quarter and the revenue increased
to EUR 890 (888) thousand. The Software segment revenue decreased by 5.9 percent
to EUR 2,437 (2,590) thousand.
In January - March 2024, the gross margin decreased to 66.5 from 71.2 percent of
last year.
EBITDA decreased and it was EUR -648 (-513) thousand. The decrease was mainly
due to weakened revenue and, therefore, gross profit.
EBIT decreased and it was EUR -1,191 (-1,043) thousand.
In January - March 2024, net financial items amounted to EUR 94 (-134) thousand
and consisted mainly of interest payments to financial institutions and the
translation effect of CNY and USD to EUR.
Cash flow and financial position
January - March 2024
In January - March 2024, the cash flow from operating activities amounted to EUR
-515 (-440) thousand. Net cash used in investing activities was EUR -534 (-545)
thousand and relates to capitalized development expenses. Net cash from
financing activities amounted to EUR -366 (-349) thousand.
Consolidated cash and cash equivalents at the end of the period amounted to EUR
5,706 (7,179) thousand. Interest-bearing net debt was EUR -2,585 (-2,136)
thousand at the end of the period.
Net working capital was EUR 2,364 (3,658) thousand at the end of the period.
Optomed has large trade receivables from a Chinese customer. The customer missed
payments since H2-2023 and, consequently, the specific loss allowance weighted
average loss rate was increased from 30% to 50% in Q3-2023. The payment
negotiations continue with the said customer. The total amount of the receivable
in the balance sheet is now EUR 778 thousand.
Devices segment
Optomed has two synergistic business segments: Devices and Software.
The Devices segment develops, commercializes, and manufactures easy-to-use, and
affordable handheld fundus cameras, that are suitable for any clinic for
screening of various eye diseases, such as diabetic retinopathy, glaucoma and
AMD (Age Related Macular Degeneration).
EUR, thousand Q1/2024 Q1/2023 Change, % 2023
Revenue 890 888 0.1% 5,009
Gross profit * 516 559 -7.6% 2,947
Gross margin % * 58.0% 62.9% 58.8%
EBITDA -361 -426 15.3% -1,264
EBITDA margin *, % -40.5% -47.9% -25.2%
Operating result (EBIT) -705 -779 9.5% -2,707
Operating margin (EBIT) *, % -79.2% -87.7% -54.0%
*) Alternative performance measures, see section Alternative Performance
Measures for definitions and calculations.
January - March 2024
In January - March 2024, the Devices segment revenue increased by 0.1 percent to
EUR 890 (888) thousand. The OEM and China revenue increased slightly whereas the
global distributor sales declined slightly. In the US, the focus of the sales
organization was on preparing for the possible Aurora AEYE launch.
The gross margin was 58.0 (62.9) percent. During the quarter, the Company sold
an amount of Smartscope Pros which had a slight negative effect on the gross
margin.
EBITDA was EUR -361 (-426) thousand or -40.5 (-47.9) percent of revenue.
Software segment
Optomed has two synergistic business segments: Devices and Software.
The Software segment develops and commercializes screening software for diabetic
retinopathy and cancer screening for healthcare organizations. The segment also
distributes off-the-shelf products from selected partners to supplement its own
solutions and expertise and provides software consultation to support the
Devices segment screening solution projects.
EUR, thousand Q1/2024 Q1/2023 Change, % 2023
Revenue 2,437 2,590 -5.9% 10,091
Gross profit * 1,697 1,917 -11.5% 7,346
Gross margin % * 69.6% 74.0% 72.8%
EBITDA 526 790 -33.4% 2,629
EBITDA margin *, % 21.6% 30.5% 26.1%
Operating result (EBIT) 329 615 -46.5% 1,889
Operating margin (EBIT) *, % 13.5% 23.8% 18.7%
*) Alternative performance measures, see section Alternative Performance
Measures for definitions and calculations.
January - March 2024
In January - March 2024, the Software segment revenue decreased by 5.9 percent
to EUR 2,437 (2,590) thousand as there were no major projects deliveries during
the quarter. There were no updates in terms of the large Finnish public
procurement process during the quarter. After the review period, Optomed
announced that it has won a contract to provide non-healthcare development
services to a Finnish governmental agency. Optomed has been providing the
services since 2003 but the contract was subject to a procurement process. The
decision can be appealed against.
Gross margin decreased and was 69.6 (74.0) percent. EBITDA was EUR 526 (790)
thousand or 21.6 (30.5) percent of revenue.
Group-wide expenses
Group-wide expenses relate to functions supporting the entire group such as
treasury, group accounting, marketing, legal, HR, and IT.
January - March 2024
Group-wide operating expenses amounted to EUR 816 (877) thousand.
Personnel
Number of personnel at the end of the reporting period.
3/2024 3/2023 12/2023
Devices 51 48 47
Software 47 45 47
Group common 16 22 20
Total 114 115 114
Corporate Governance
Optomed complies with Finnish laws and regulations, Optomed's Articles of
Association, the rules of Nasdaq Helsinki and the Finnish Corporate Governance
Code 2020 issued by the Securities Market Association of Finland. The code is
publicly available at http://cgfinland.fi/en/. Optomed's corporate governance
statement 2023 is available on the company website www.optomed.com/investors/.
Annual General Meeting
Optomed's Annual General Meeting will be held on Friday, 10 May 2024 at 10:00
a.m. (EEST) at Life Science Center Keilaniemi, Keilaranta 16 C, FI-02150 Espoo,
Finland. The reception of persons who have registered for the meeting and the
distribution of voting tickets will commence at 9:30 a.m. (EEST).
The invitation and other material is available at:
https://www.optomed.com/investors/annual-general-meeting-2024/
Shares and shareholders
The Company has one share series with all shares having the same rights. At the
end of the review period Optomed Plc's share capital consisted of 18,130,397
shares and the Company held 353,973 shares in the treasury which approximately
corresponds to 1.95 percent of the total amount of the shares and votes.
Additional information with respect to the shares, shareholding and trading can
be found on the Company's website www.optomed.com/investors/.
Risks and uncertainties
The key risks and uncertainties are described in the company's Annual Report
2023 which was published on 29 February 2024. The complete report is available
at https://www.optomed.com/investors/. The risk position of Optomed has not
changed since then, except for that the risks titled "AURORA AEYE FDA CLEARANCE
PROCESS" and “PUBLIC PROCUREMENT” are no longer applicable.
Audit review
This financial report has not been audited by the company's auditors.
Financial reporting in 2024
· 8 August 2024 Half-Year Financial Report for 1 January - 30 June
2024
· 7 November 2024 Interim Report for 1 January - 30 September 2024
For more information, contact
Sakari Knuutti, CFO
E-mail: sakari.knuutti@optomed.com
Juho Himberg, CEO
E-mail: juho.himberg@optomed.com
About Optomed
Optomed is a Finnish medical technology company and one of the leading providers
of handheld fundus cameras. Optomed combines handheld fundus cameras with
software and artificial intelligence with the aim to transform the diagnostic
process of various eye diseases, such as rapidly increasing diabetic
retinopathy. In its business Optomed focuses on eye screening devices and
software solutions related R&D in Finland and sales through different channels
in over 60 countries.
www.optomed.com
Alternative Performance Measures
Optomed uses certain alternative performance measures (APMs) with the purpose to
provide a better understanding of how the business develops. These APMs, as
defined, cannot be fully compared with other companies' APMs.
Alternative Definition
Performance
Measures
Gross profit Revenue + Other operating income - Materials and services
expenses
Gross margin, % Gross profit / Revenue
EBITDA Operating result before depreciation, amortization and
impairment losses
EBITDA margin, % EBITDA / Revenue
Operating result Profit/loss after depreciation, amortization and
impairment losses
Operating margin, % Operating result / Revenue
Adjusted operating Operating result excluding items affecting comparability
result
Adjusted operating Adjusted operating result / Revenue
margin, %
Adjusted EBITDA EBITDA excluding items affecting comparability
Adjusted EBITDA Adjusted EBITDA / Revenue
margin, %
Items affecting Material items outside ordinary course of business
comparability including restructuring costs, net gains or losses from
sale of business operations or other non-current assets,
strategic development projects, external advisory costs
related to capital reorganisation, impairment charges on
non-current assets incurred in connection with
restructurings, compensation for damages and transaction
costs related to business acquisitions.
Net Debt Interest-bearing liabilities (borrowings from financial
institutions, government loans and subordinated loans) -
cash and cash equivalents (excl. lease liabilities
according to IFRS 16)
Net Debt / EBITDA Net Debt / EBITDA (for the last twelve months, LTM)
(LTM), times
Net Debt / Adjusted Net Debt / Adjusted EBITDA (for the last twelve months,
EBITDA (LTM), times LTM)
Earnings per share Net result / Weighted average number of outstanding
shares
Equity ratio, % Total equity / Total assets
R&D expenses Employee benefit expenses for R&D personnel and other
operational expenses related to R&D activities
Reconciliation of Alternative Performance Measures
In thousand of Euro Q1/2024 Q1/2023 2023
Revenue 3,327 3,478 15,100
Other operating income 1 0 49
Material and services -1,114 -1,002 -4,857
Gross profit 2,213 2,476 10,292
Operating result (EBIT) -1,191 -1,043 -3,974
Items affecting comparability
Specific credit loss percent change from 30 to 50 % 0 0 311
Adjusted EBIT -1,191 -1,043 -3,663
Depreciation, amortization and impairment losses 543 530 2,193
Adjusted EBITDA -648 -513 -1,470
Consolidated income statement
In thousands of euro Q1/2024 Q1/2023 2023
Revenue 3,327 3,478 15,100
Other operating income 1 0 49
Materials and services -1,114 -1,002 -4,857
Employee benefit -2,127 -2,191 -8,699
expenses
Depreciation, -543 -530 -2,193
amortization and
Impairment losses
Other operating expenses -734 -798 -3,374
Operating result -1,191 -1,043 -3,974
Finance income 211 68 479
Finance expenses -118 -202 -1,024
Net finance expenses 94 -134 -545
Profit (loss) before -1,098 -1,177 -4,519
income taxes
Income tax expense 7 20 79
Loss for the period -1,090 -1,157 -4,441
Loss for the period
attributable to
Owners of the parent -1,090 -1,157 -4,441
company
Weighted average number 17,108,667 15,284,687 16,706,508
of shares
Basic loss per share -0.06 -0.08 -0.27
(euro)
Consolidated condensed comprehensive income statement
In thousands of euro Q1/2024 Q1/2023 2023
Loss for the period -1,090 -1,157 -4,441
Other comprehensive income
Foreign currency translation -80 78 283
difference
Other comprehensive income, net of -80 78 283
tax
Total comprehensive loss -1,170 -1,079 -4,157
attributable to Owners of the
parent company
Consolidated balance sheet
In thousands of euro March 31, 2024 March 31, 2023 December 31, 2023
ASSETS
Non-current assets
Goodwill 4,256 4,256 4,256
Development costs 7,996 6,849 7,731
Customer relationships 887 1,109 942
Technology 407 509 433
Other intangible assets 386 374 384
Total intangible assets 13,932 13,096 13,746
Tangible assets 652 793 710
Right-of-use assets 1,341 1,353 1,472
Deferred tax assets 11 16 23
Total non-current assets 15,936 15,258 15,951
Current assets
Inventories 2,777 3,071 2,820
Trade and other receivables 3,259 4,324 3,190
Cash and cash equivalents 5,706 7,179 7,118
Total current assets 11,742 14,574 13,128
Total assets 27,678 29,832 29,079
In thousands of euro March 31, 2024 March 31, 2023 December 31, 2023
EQUITY
Share capital 80 80 80
Share premium 504 504 504
Reserve for invested 50,936 46,900 50,936
non-restricted equity
Translation 255 129 334
differences
Retained earnings -31,460 -27,149 -27,052
Profit (loss) for the -1,090 -1,157 -4,441
financial year
Total equity 19,223 19,306 20,361
LIABILITIES
Non-current
liabilities
Borrowings from 1,386 3,182 1,651
financial
institutions
Government loans 681 874 713
Lease liabilities 870 876 991
Deferred tax 291 368 310
liabilities
Total Non-current 3,228 5,300 3,665
liabilities
Current liabilities
Borrowings from 860 794 794
financial
institutions
Government loans 193 193 193
Lease liabilities 501 502 516
Trade and other 3,672 3,737 3,550
payables
Total current 5,227 5,226 5,052
liabilities
Total liabilities 8,455 10,526 8,718
Total equity and 27,678 29,832 29,079
liabilities
Consolidated statement of changes in shareholders' equity
Equity attributable to owners of the parent company
+-------------+-------+-------+-----------+-----------+--------+-------+
|In thousands |Share |Share |Reserve |Translation|Retained|Total |
|of euro |capital|premium|for |differences|earnings| |
| | | |invested | | | |
| | | |non | | | |
| | | |-restricted| | | |
| | | |equity | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Balance at |80 |504 |50,936 |334 |-31,493 | 20,361|
|January 1, | | | | | | |
|2024 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Loss for the | | | | |-1,090 |-1,090 |
|period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Other | | | | | | |
|comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Translation | | | |-80 | |-80 |
|differences | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total | | | |-80 |-1,090 |-1,170 |
|comprehensive| | | | | | |
|income for | | | | | | |
|the period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share issue | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share based | | | | | | |
|payments | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share options| | | | |32 |32 |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total | | | | |32 |32 |
|transactions | | | | | | |
|with owners | | | | | | |
|of the | | | | | | |
|company | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Balance at |80 |504 |50,936 |255 |-32,551 | 19,223|
|March 31, | | | | | | |
|2024 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
Equity attributable to owners of the parent company
+-------------+-------+-------+-----------+-----------+--------+------+
|In thousands |Share |Share |Reserve |Translation|Retained|Total |
|of euro |capital|premium|for |differences|earnings| |
| | | |invested | | | |
| | | |non | | | |
| | | |-restricted| | | |
| | | |equity | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Balance at |80 |504 |46,896 |51 |-27,189 |20,342|
|January 1, | | | | | | |
|2023 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Loss for the | | | | |-1,157 |-1,157|
|period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Other | | | | | | |
|comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Translation | | | |78 | |78 |
|differences | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | | |78 |-1,157 |-1,079|
|comprehensive| | | | | | |
|income for | | | | | | |
|the period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Share options| | | 4 | |40 |43 |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | |4 | |40 |43 |
|transactions | | | | | | |
|with owners | | | | | | |
|of the | | | | | | |
|company | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Balance at |80 |504 |46,900 |129 |-28,307 |19,306|
|March 31, | | | | | | |
|2023 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
Equity attributable to owners of the parent company
+-------------+-------+-------+-----------+-----------+--------+-------+
|In thousands |Share |Share |Reserve |Translation|Retained|Total |
|of euro |capital|premium|for |differences|earnings| |
| | | |invested | | | |
| | | |non | | | |
| | | |-restricted| | | |
| | | |equity | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Balance at |80 |504 |46,896 |51 |-27,189 |20,342 |
|January 1, | | | | | | |
|2023 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Loss for the | | | | |-4,441 |-4,441 |
|period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Other | | | | | | |
|comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Translation | | | |283 | |283 |
|differences | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total | | | |283 |-4,441 |-4,157 |
|comprehensive| | | | | | |
|income for | | | | | | |
|the period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share issue | | |3,973 | | |3,973 |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share based | | |48 | | |48 |
|payments | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share options| | |19 | |137 |156 |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total | | |4,039 | |137 |4,176 |
|transactions | | | | | | |
|with owners | | | | | | |
|of the | | | | | | |
|company | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Balance at |80 |504 |50,936 |334 |-31,493 | 20,361|
|December | | | | | | |
|31, 2023 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
Consolidated cash flow statement
In thousands of euro Q1/2024 Q1/2023 2023
Cash flows from operating activities
Loss for the financial year -1,090 -1,157 -4,441
Adjustments:
Depreciation, amortization and 543 530 2,193
impairment
losses
Finance income and finance expenses -47 167 468
Other adjustments -2 -11 289
Cash flows before change in net -596 -471 -1,491
working capital
Change in net working capital:
Change in trade and other receivables -34 324 1,094
(increase (-) / decrease (+))
Change in inventories 54 -95 118
(increase (-) / decrease (+))
Change in trade and other payables 107 -171 -75
(increase (+) / decrease (-))
Cash flows before finance items -468 -413 -354
Interest paid -29 -17 -169
Other finance expenses paid -32 -10 -93
Interest received 14 0 0
Net cash from operating activities (A) -515 -440 -615
Cash flows from investing activities
Capitalization of development expenses -509 -518 -2,199
Acquisition of tangible assets -25 -27 -213
Net cash used in investing activities -534 -545 -2,412
(B)
Cash flows from financing activities
Proceeds from share subscriptions 0 4 4,310
Share issue transaction costs 0 0 -318
Repayment of loans and borrowings -230 -230 -1,921
Repayment of lease liabilities -136 -122 -462
Net cash from financing activities (C) -366 -349 1,609
Net cash from (used in) operating, -1,415 -1,333 -1,419
investing and financing activities
(A+B+C)
Cash and cash equivalents at beginning 7,118 8,524 8,524
of period
Effect of movements in exchange rate 3 -12 13
on cash held
Cash and cash equivalents at end of 5,706 7,179 7,118
period
Selected notes
Corporate information and basis of accounting
Corporate information
Optomed is a Finnish medical technology group (hereafter ‘Optomed' or ‘Group')
that specialises in handheld fundus cameras and solutions for screening of
blinding eye diseases, established in 2004.
The Group's parent company, Optomed Plc (hereafter the ‘Company'), is a Finnish
public limited liability company established under the laws of Finland, and its
business ID is 1936446-1. It is domiciled in Oulu, Finland and the Company's
registered address is Yrttipellontie 1, 90230 Oulu, Finland.
Basis of accounting
Optomed's consolidated financial statements has been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European
Union. The preparation of this interim report also takes into account the
amendments to IFRS standards that have become effective by January 1, 2024.
These interim financial statements have been prepared in accordance with IAS 34
Interim Financial Reporting and should be read in conjunction with Group`s last
annual consolidated financial statements as at and for the year ended 31
December 2023. This Interim financial statements do not include all of the
information required by IAS 34: selected explanatory notes are included to
explain events and transactions that are significant to an understanding of the
changes in the Group`s financial position and performance since the last annual
financial statements.
All presented figures have been rounded so the sum of the individual figures may
differ from the presented total figure.
Financial ratios have been calculated using exact figures.
Reportable segments
Q1/2024
In thousands of euro Devices Software Group Total
Admin
External revenue 890 2,437 0 3,327
Net operating expenses -374 -740 1 -1,113
Margin 516 1,697 1 2,213
Depreciation and amortization -344 -197 -3 -543
Other expenses -877 -1,171 -814 -2,861
Operating result -705 329 -816 -1,191
Finance items 0 0 94 94
Loss before tax expense -705 329 -723 -1,098
Q1/2023
In thousands of euro Devices Software Group Admin Total
External revenue 888 2,590 0 3,478
Net operating expenses -330 -673 0 -1,002
Margin 559 1,917 0 2,476
Depreciation and amortization -353 -175 -2 -530
Other expenses -984 -1,127 -877 -2,989
Operating result -779 615 -879 -1,043
Finance items 0 0 -134 -134
Loss before tax expense -779 615 -1,014 -1,177
2023
In thousands of euro Devices Software Group Total
Admin
External revenue 5,009 10,091 0 15,100
Net operating expenses -2,062 -2,745 0 -4,807
Margin 2,947 7,346 0 10,292
Depreciation and amortization -1,444 -740 -9 -2,193
Other expenses -4,210 -4,717 -3,146 -12,074
Operating result -2,707 1,889 -3,155 -3,974
Finance items 0 0 -545 -545
Loss before tax expense -2,707 1,889 -3,701 -4,519
Other operating income
In thousands of euro Q1/2024 Q1/2023 2023
Other operating income 1 0 49
Total 1 0 49
Other operating expenses
Other operating expenses Q1/2024 Q1/2023 2023
Sales and marketing -95 -147 -635
Research and development -79 -90 -230
General and administration -561 -562 -2,509
Total operating expenses -734 -798 -3,374
Other operating expenses also comprise changes in expected credit losses and
realized credit losses.
Financial liabilities
In thousands of March 31, 2024 March 31, 2023 December 31, 2023
euro
Non-current
financial
liabilities
Borrowings from 1,386 3,182 1,651
financial
institutions
Government loans 681 874 713
Lease liabilities 870 876 991
Total 2,937 4,932 3,355
Current financial
liabilities
Borrowings from 860 794 794
financial
institutions
Government loans 193 193 193
Lease liabilities 501 502 516
Trade payables 1,102 758 782
Total 2,656 2,247 2,285
Total financial 5,594 7,179 5,640
liabilities
Fair values - financial liabilities measured at amortized cost.
Optomed considers that the carrying amounts of the financial liabilities
measured at amortized cost substantially equal to their fair values.
Exposure to credit risk and loss allowance
Optomed considers it has heightened risk regarding Chinese customer's trade
receivables. The credit risk concentration has been formed and is associated
with an increased credit loss risk due to overdue trade receivables. Specific
loss allowance weighted average loss rate% increased from 30% to 50%.
In thousands Gross carrying amount Weighted Loss
of euro av.
allowance
loss
rate%
At March 31,
2024
Current (not 1,698 0.50% 8
past due)
Past due
1-30 days 44 1.50% 1
31-60 days -8 4% 0
61-90 days 6 9% 1
More than 90 67 12% 8
days past due
Specific loss 1,541 50% 770
allowance
Total 3,347 788
In thousands Gross carrying amount Weighted Loss
of euro av.
allowance
loss
rate%
At March 31,
2023
Current (not 1,839 0.5% 9
past due)
Past due
1-30 days 83 1.5% 1
31-60 days 33 4% 1
61-90 days 255 9% 23
More than 90 5 12% 1
days past due
Specific loss 1,810 30% 543
allowance
Total 4,024 578
In thousands Gross carrying amount Weighted Loss
of euro av.
allowance
loss
rate%
At December
31, 2023
Current (not 1,516 0.50% 8
past due)
Past due
1-30 days 51 1.50% 1
31-60 days 4% 0
6
61-90 days 10 9% 1
More than 90 277 12% 33
days past due
Specific loss 1,534 50% 767
allowance
Total 3,392 809
Events after the review period
On 30 April 2024, Optomed announced that Optomed Aurora with AEYE-DS AI has
successfully received FDA clearance.
On 2 May 2024, Optomed announced that it has won a contract to provide non
-healthcare development services to a Finnish governmental agency. Optomed has
been providing the services since 2003 but the contract was subject to a
procurement process. The decision can be appealed against.
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