EOS IMAGING Marie Meynadier, CEO of EOS imaging, commented: 'In 2014 we made excellent progress in the company's international expansion, highlighted by strong growth in Asia-Pacific. This was complemented by regulatory approval to market the EOS system in important new geographies such as South Korea and Brazil, and new installations of our system around the world. The success of our new hipEOS and Micro Dose products demonstrates the real-world demand for integrated orthopaedics solutions based on the EOS system's unique low dose 2D/3D imaging. With regard to financial results, we delivered another year of sharp improvement in gross margin, which along with prudent expense management, also boosted earnings.
'First quarter 2015 revenues grew an impressive 53%, driven by an upturn in system sales to customers in the United States. This positive momentum, which began late in 2014, confirms the company's ability to leverage an improved capital spending environment to drive adoption of the EOS system by North American hospitals.'
2014 FINANCIAL HIGHLIGHTS Strong revenue growth in 2014 : 32% increase to €20.1 million
EOS imaging reported 2014 revenues of €20.1 million, up 32% from 2013.
Equipment sales were €17.2 million, a 28% increase. This included the sale of 44 EOS® systems. Sales of maintenance contracts increased 37% to €2.1 million as a result of the increase in the Company's installed base. Sales of consumables and related services were €0.8 million.
In addition, the Company received €1.6 million in public grants in 2014 to support its innovation, including
a research tax credit, recorded as 'other income'.
Strong improvement in gross margin and earnings
The Company's ongoing reduction in production and maintenance costs contributed to a further improvement in gross margin, which represented 47% of revenue in 2014 compared to 43% in 2013. This equates to an increase of 400 basis points for the year and 1,900 basis points in aggregate over the last three financial years.
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Total operating expenses were €27.9 million in 2014, up 21% compared to 2013, while operating income increased by more than 30%.
Sales and marketing expenses increased 35% to €6.9 million. Research and development expenses, up
23%, amounted to €3.2 million. Before IFRS adjustments, 2014 R&D costs increased by just 4%.
The Company's operating loss was €6.15 million, which represents 30% of revenues, an improvement from 42% in 2013.
The Company reported a 2014 net loss of €5.25 million as compared to a €5.88 million loss in 2013, an improvement of 11%.
The Company's total number of employees was 106 as of December 31, 2014, as compared to 101 at
December 31, 2013.
€ millions 2014 2013
Operating income
Revenue 20.06 15.17
Other income 1.66 1.50
Total income 21.72 16.67
Direct cost of sales -10.62 -8.69
Gross margin 9.44 6.48
As a % of revenues 47% 43%
Indirect cost of production and services -2.76 -2.25
Research and development -3.21 -2.60
Sales & marketing -6.88 -5.12
Regulatory expenses -0.65 -0.57
Administrative costs -3.25 -2.69
Share-based payments -0.50 -1.13
Audited data
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Net cash at December 31, 2014: €10.2 million
As of December 31, 2014, EOS imaging had a net cash position of €10.2 million as compared to €15.7 million on December 31, 2013. The company had shareholders' equity of €25.5 million at the end of December 2014 as compared to €30.1 million at December 31, 2013.
First quarter 2015 sales: up 53% at €3.32 million
EOS imaging reported first quarter 2015 revenue of €3.32 million, an increase of 53% over first quarter
2014, driven primarily by strong new business in the United States.
€ millions Q1 2015 Q1 2014
Equipment sales 2.50 1.56
% of total 75% 72%
Sales of maintenance contracts 0.63 0.45
% of total 19% 21%
Sales of consumables and services 0.19 0.15
% of total 6% 7%
Total revenue 3.32 2.16Unaudited data
Revenue from equipment sales was €2.50 million, up 60% compared to first quarter 2014, corresponding to the sale of six EOS® systems, compared to four in the same period the previous year. Four systems were sold in the North American region, compared to one in first quarter 2014. The average sales price per system was €417,000, compared to €390,000 in first quarter 2014, driven by a strong contribution from sales reported in US$ and a positive impact of the exchange rate.
First quarter 2015 sales of maintenance contracts increased 41% to €0.63 million, compared to €0.45 million in first quarter 2014. This strong growth was driven by the increase in the EOS® system installed base.
Sales of consumables and related services were €0.19 million during the first quarter 2015, up from €0.15
million in first quarter 2014.
At constant rate, the increase in revenue over the first quarter is 49%.
€ millions Q1 2015 Q1 2014
EMEA 1.30 0.81
North America 2.02 0.61
Asia 0.00 0.74
Unaudited data
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2014 HIGHLIGHTS Important developments in the Company's international business
Regulatory approval to market to new countries including Taiwan, Brazil and South Korea,
increasing the number of countries in which EOS technology can now be marketed to 47,
First installation in Vietnam in October,
30 new installations, which enabled the Company to surpass the key milestone of 100 installations worldwide,
Strong growth in Asia, which accounted for 27% of total group revenue.
Development of a service offering for orthopaedic surgery
Launched hipEOS 3D hip replacement surgery planning software: CE Marking received in March
2014, FDA approval in December 2014,
FDA approval for the new generation of sterEOS® software, which adds rapid analysis of sagittal balance to the existing product range.
Secured additional funding
Implementation of option-based share issue programs ('PACEO') with Société Générale in order
to secure a line of funding based on option-based share issues.
Implementation of senior debt funding
Issue of simple bonds and bonds with warrants (OBSA or Obligations à Bons de Souscription
d'Actions) capped at €15 million to fund the Company.
New installations at leading hospital sites
Sixth installation in Switzerland, at the Clinique de la Source, reputed worldwide for orthopaedic
surgery,
First installation in Belgium at the worldwide leader Pellenberg hospital,
First installation in the Dallas Fort-Worth region, the second institution in Texas to adopt the EOS
system.
FDA approval for marketing of the Micro Dose option
US launch of hipEOS at AAOS 2015
About EOS imaging:EOS imaging designs, develops, and markets EOS®, an innovative medical imaging system based on technology that enabled George Charpak to win the Nobel Prize for Physics, as well as associated solutions. The Company is authorized to market in 47 countries, including the United States (FDA), Japan and the European Union (EU). As of December 31, 2014 the Group posted 2014 consolidated revenue of €20.1 million and employed 106 people including an R&D team of 39 engineers. The Group is based in Paris and holds four subsidiaries in Besançon (France), Cambridge (Massachusetts), Montreal (Canada) and Frankfurt (Germany), and offices in Singapore.
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EOS imaging has been chosen to be included in the new EnterNext© PEA-PME 150 index, composed of 150 French companies and listed on Euronext and Alternext markets in Paris.
EOS imaging is listed on Compartment C of Euronext Paris
ISIN: FR0011191766 - Ticker: EOSI Next press release: July 21th, 2015
Contacts:
Anne RenevotCFO
Ph: +33 (0)1 55 25 61 24 investors@eos-imaging.com
NewCapFinancial communication and investor relations
Antoine Denry/ Pierre Laurent
Ph: +33 (0)1 44 71 94 91 eosimaging@newcap.fr
The Ruth Group (US)Press relations / Calvin Allen Ph: 646-536-7002 callen@theruthgroup.com
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