Interim report July – September 2024

Third quarter in brief

• Net sales amounted to 13.3 million SEK (21.7), which means a decrease in sales of 39 percent.
   
• Operating profit amounted to -5.3 million SEK (4.5), corresponding to an operating margin of -40 percent (21).
   
• Net profit for the period amounted to -6.9 million SEK (4.1).
   
• Earnings per share amounted to -0.15 SEK (0.10).

First nine months in brief

• Net sales for the first nine months amounted to 43.0 million SEK (59.1), which means a decrease in sales of 27 percent.
   
• Operating profit amounted to -10.9 million SEK (5.3), implying to an operating margin of -25 percent (9).
   
• Profit for the period amounted to -10.8 million SEK (5.4).
   
• Earnings per share amounted to -0.25 SEK (0.13).

Significant events during the third quarter

On July 9, a press release was sent regarding estimated net sales for the second quarter of 2024.

Francois Hebert is announced to be the new head of North America.

SyMRI in 3D has received regulatory approval in the UK.

SyMRI has received regulatory approval in Taiwan.

Significant events during the first nine months

In February 2024, the extraordinary general meeting decided to establish a long-term incentive program. This was booked during the second quarter of 2024.

SyntheticMR has received FDA 510K approval for SyMRI 3D.

SyntheticMR's version 15 of SyMRI has received CE marking.

On July 9, a press release was sent regarding estimated net sales for the second quarter of 2024.

Francois Hebert is announced to be the new head of North America.

SyMRI in 3D has received regulatory approval in the UK.

SyMRI has received regulatory approval in Taiwan.

Significant events after the third quarter

SyMRI in 3D has received regulatory approval in the Switzerland and Australia.

CEO comments

Tough quarter with gleam of light in Asia

Sales in the period amounted to SEK 13.3 million (21.7). Previously communicated organizational changes in the subsidiary in the USA during second quarter had a negative impact also on the third quarter. A new subsidiary manager and two salespeople have been recruited in North America for some time now. The new organization has now been operating for a few months and the expectation is that improvements will take place gradually from the fourth quarter of this year. In other regions, the picture is significantly more positive, the growth in Japan and South Korea, for example. After the first nine months of the year, they are performing in line with expectations. The weak sales in North America are the reason why the operating profit amounted to SEK -5.3 million (4.5). We have had good cost discipline for several years, which also applies to 2024. So far, the costs are on par with 2023.

Increased pace in the implementation of the product plan

All regions have the potential to perform better based on the existing product portfolio. However, we continue to work at a high pace regarding the implementation of the product plan. To a large extent, we will address the same customer groups, that is, the sales synergies are large. The fact that we have now launched SyMRI in 3D makes a technical contribution in this context. SyMRI in 3D enables precise volumetric estimates of brain regions, a technique commonly referred to as parcellation. It gives clinicians the opportunity to gain deeper insights into the structure and function of the brain. In addition, the exceptional resolution of SyMRI in 3D facilitates comprehensive lesion analysis, ensuring a more accurate and in-depth assessment of medical conditions. Access to parcellation and lesion analysis will enable physicians to make even better, more informed decisions using quantitative imaging in dementias such as Alzheimer's disease, multiple sclerosis, and various pediatric conditions, among others. The clinical value increases and the pricing is increased in relation to it. Furthermore, SyMRI in 3D technically also provides opportunities for development in other areas, for example applications for examinations of the liver and spine.

Back to growth

We have the organizational and market conditions to get back to growth. The strengths of the solutions we offer the market and the organization we have at our disposal give reason for optimism. The positive response in the market and the use of SyMRI in healthcare is clearly growing in scope. The launch of SyMRI in 3D continues undiminished and just in recent months we have received approval for clinical use in major markets such as the UK and Australia. I am satisfied with the results from our investments in research and development. We will together with our partners increase marketing activities and accompanying sales. We continuously improve the conditions for continuing to establish SyMRI as a standard in healthcare. I look forward with great confidence.

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 18-11-2024 08:14 CET.