Interim report January – March 2022

First quarter in brief

• Net sales amounted to 9.9 million SEK (14.7), which represents a decrease in sales of 33 percent.

• Operating profit amounted to -3.6 million SEK (2.5).

• Net profit for the period amounted to -3.5 million SEK (2.7).

• Earnings per share amounted to -0.08 SEK (0.07).

 

Significant events during the first quarter

During the period, a directed share issue was carried out for an amount equivalent to 60 million SEK before transaction costs.

SyntheticMR US Inc has entered a partnership with Hyland Healthcare.

A sales and support representative, based in Beijing, China, was established.

Significant events after the first quarter

A collaboration with Mahajan Imaging in New Delhi, India, was initiated to gather reference values for the Indian population.

CEO comments

 

Restrictions in customers’ purchasing processes had a negative impact on the outcome for the period

SyntheticMR has high ambitions in terms of sales growth and consequently we are very disappointed with the outcome of the quarter. Sales amounted to SEK 9.9 million (14.7), a decrease of -33% compared to the same period last year. Operating profit was SEK -3.6 million (2.5), corresponding to a margin of -37% (17). The negative outcome is due to the fact that sales processes for a number of expected orders of significant value were adversely affected at the end of the period. The development was very unexpected, but we remain positive under these circumstances because all the processes are still ongoing.

In one case, SyMRI was selected as part of a larger tender. Implementation following the contract award was delayed due to an appeal against the whole tender and is now under legal review. Another reason relates to manufacturers of MRI scanners. Due to supply chain constraints, several orders of SyMRI were postponed in the late stages. Change of plans for SyMRI installations also had an impact. Although we have received orders, our procedures mean that in these cases we build order backlog. Continued supply chain constraints for MRI scanner manufacturers are unpredictable and the timeline for normalisation difficult to predict. Otherwise, all processes are expected to be completed during the current year.

As communicated earlier, at times our business has large fluctuations over the quarters. However, it is important to point out that the market response to our offering after the last record quarter remains strong. My fundamental belief in the potential for the current and coming years remains intact.

SyMRI established as standard through successful partnerships

We are unrelenting in our ambition to establish SyMRI as a standard of care. We continue to implement our growth plan with unabated determination. One of the initiatives is product development projects with our partners. A high priority is the development of the next generation SyMRI. The 3D product solution will increase the detail of images and quantitative data from an examination and further improve support for healthcare providers in the management of more medical conditions. The aforementioned project with Canon Medical Systems, which started in mid-2021, is progressing according to plan. Collaborations in this area are also intensively ongoing with other partners and we are enthusiastic about the rate of product development.

Looking ahead

We are seeing society opening up again in country after country, which is very encouraging. This gives us the opportunity to meet customers, partners, and other important key contacts once again in person. The value of this cannot be overstated. However, we are humbled by the fact that continued disturbances in the wider world will affect our business going forward. In terms of the pandemic, there are still some constraints in some markets, but it is reasonable to assume that these will ease over time. Regarding the unrest in our geographical neighbourhood, we have no activities in the countries primarily involved. Whether there are indirect effects, particularly in the rest of Europe, remains to be seen. In conclusion, we are certainly doing everything we can to minimise the impact on our business of the risks arising from changes in our global environment.

As mentioned, we continue to focus on implementing the initiatives defined in our growth plan. Time is of the essence in our ambition to establish SyMRI as a standard of care. Therefore, we are accelerating initiatives such as continuing to establish ourselves in existing and new markets, all while maintaining cost control. We will implement our solid product roadmap even more effectively. We will implement these types of initiatives more widely through various types of collaborations and partnerships. With a high level of ambition and strong commitment, we will continue our growth journey.

Ulrik Harrysson

 

CEO, SyntheticMR AB (publ)

This is a translation of the Swedish version of the report. When in doubt, the Swedish wording prevails.


 

This disclosure contains information that SyntheticMR AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 10-05-2022 08:06 CET.