Year-End report January – December 2023

Fourth quarter in brief
 

• Net sales amounted to 30.1 million SEK (20.6), which means a sales growth of 46 percent.
   
• Operating profit amounted to 8.8 million SEK (2.1), corresponding to an operating margin of 29 percent (10).
   
• Net profit for the period amounted to 4.6 million SEK (0.5).
   
• Earnings per share amounted to 0.10 SEK (0.01).

Full year January - December in brief

• Net sales for the full year 2023 amounted to 89.2 million SEK (68.3), which means a sales growth of 31 percent.
   
• Operating profit amounted to 14.1 million SEK (7.2), corresponding to an operating margin of 16 percent (11).
   
• Profit for the period amounted to 10 million SEK (5.9).
   
• Earnings per share amounted to 0.23 SEK(0.15).

Significant events during the fourth quarter

SyMRI in 3D has received CE marking and is thus available for sale on the European market.

Expanded partnership with Philips Healthcare to include SyMRI in 3D.

Significant events during the full year 2023

During the first quarter SyMRI received regulatory approvals in Singapore, UK and Canada. After the approvals, we have received our first orders in Canada and Singapore.

During the second quarter SyMRI received regulatory approval in South Korea. After the approval, we have received several orders.

The Central Government Health Scheme in India recommends SyMRI to be evaluated being included as standard in examination protocols across the country.

SyMRI in 3D has received CE marking and is thus available for sale on the European market.

Expanded partnership with Philips Healthcare to include SyMRI in 3D.

Significant events after the fourth quarter

Nothing to report.

CEO comments

 

Strong sales development during the last quarter of the year

Sales in the fourth quarter amounted to SEK 30.1 million (20.6). A new all time high is thus reached, more than SEK 8.0 million higher than the sales record last quarter. This corresponds to organic growth of 46 percent compared to the strong fourth quarter last year. The sales development mainly consists of larger orders from several partners and increased direct sales in prioritized geographic markets. The operating result was our best to date, SEK 8.8 million (2.1), corresponding to a margin of 29 percent (10). For the full year 2023, sales amounted to SEK 89.2 million (+31%) and operating profit to SEK 14.1 million (16% in margin).

At the end of the year, the costs were slightly higher than estimated and the cash balance lower than expected. This relates to opportunities that arose regarding SyMRI in 3D and expansion of the collaboration with Philips Healthcare. For example, we made the decision to increase investment in customer exhibitions and launch activities. Furthermore, we prioritized increased investment in processes that provide additional regulatory approvals to sell our new product. Regulatory issues are necessary everyday things in our industry. The counterparty has a very large part of the time plan and thus also how it affects our costs. The commercial organization has the capacity to continue creating increased sales. We are also greatly helped in this by the close cooperation with our industrial partners and our process for regulatory management works well. The cash balance at the balance date has partly been negatively affected by the timing of invoicing.

Overall, the year ends strongly in terms of sales. I would have liked to see more of the sales processes completed before the end of the year. The good part of this is that the sales opportunities remain. Thus, these have a positive impact on the beginning of 2024. It should also be mentioned that in December we received a significant order from an MR scanner manufacturer. The order concerns licenses of SyMRI intended for the global market. The licenses will begin to be delivered and recognized as revenue in 2024 and the order value is at least SEK 15 million.

SyntheticMR and Philips Healthcare expand global partnership with SyMRI in 3D

We are very pleased and proud to now expand our partnership with Philips Healthcare to include SyMRI in 3D. The extended agreement means that the product will be included in the company's global price book and sold in their commercial organization. This will enable Philips Healthcare to offer SyMRI in both 2D and 3D to its customers. By joining forces with them on SyMRI in 3D, we have achieved a crucial milestone on our way to establishing a new standard in healthcare. Our shared mission to improve efficiency, elevate patient care and drive meaningful savings in healthcare reaffirms our commitment to revolutionizing the field.

In addition to the fact that we are in the process of obtaining approval for the clinical use of SyMRI in 3D in the USA, we have now obtained approval in the EU. The product is thus CE-marked and available for sale on the European market. With preparations in place, we now eagerly look forward to the commercial launch of SyMRI in 3D in the first half of the year.

Looking ahead

To continue establishing SyMRI as a standard in healthcare, expanding partnerships with MR scanner manufacturers is a very high priority. Among other things in terms of product development related to SyMRI in 3D. 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. SyMRI in 3D will enable doctors to make even better, more informed decisions using quantitative imaging in dementia, multiple sclerosis and various pediatric conditions, among others.

With SyMRI in 2D, we have established our customer solution in healthcare. With 3D, we greatly increase the chances of becoming standard in even more clinical contexts. In 2024, we expect revenues exceeding SEK 110 million and an operating margin after depreciation of at least 20%. The current quarter has started positively, well in line with the goals we set for the whole year.

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 20-02-2024 08:10 CET.