This release is a summary of Modulight’s business review for January–March 2022. The complete report is attached to this release.
January–March 2022 highlights
Modulight continued to execute the growth strategy and invest in increasing its production capacity and improving other capabilities to realize the company’s long-term potential.- Two new projects were initiated during the quarter, bringing the total number of projects to 26 (16) - brain diagnostics and bladder cancer projects are examples of good progress within existing projects.
- Overall, good progress continued to be made with the project pipeline, despite prolonged delays, which continued to impact revenues. Especially therapy-related projects and onsite support services continue to be affected by COVID-19 related organization-specific policies limiting Modulight’s as well as some of its customers’ ability to conduct visits to necessary facilities.
- Profitability was impacted by lower revenue and higher level of operational costs driven by the implementation of the growth strategy.
- Revenues were
EUR 1,601 (2,204) thousand - EBITDA was
EUR -418 (1,379) thousand - Operating result (EBIT) was
EUR -869 (1,128) thousand - Operating result margin (EBIT) was -54 (51) % of revenue
(The figures in brackets refer to the corresponding period of the previous year. This business review is unaudited.)
Seppo Orsila, CEO
Modulight’s first quarter in 2022 was twofold in terms of our performance. We continued to implement our investment program, made clear progress with existing projects and expanded our project portfolio by two to 26 significant projects. We received orders from new large enterprises, including two Fortune 500 companies, one of which is among the largest pharmaceutical companies in the world and another is a large company developing quantum computers. Both of these wins highlight the recognition of Modulight’s expertise and the broadening potential of the company’s technology platforms. They also support our future sales by providing new tier-1 customer references. As emphasized previously, the evolution of our product development pipeline is Modulight’s most important strategic performance indicator.
The number of new indications and applications our technology can be applied to has increased faster than we anticipated. This creates a solid foundation for the coming years. On the other hand, the
That said, our quarterly revenue and profitability were lower than during the previous year. Revenue was
As previously emphasized, significant variation in quarterly revenue is to be expected in the short term. In our line of business, sales cycles are typically very long, ranging often from six months to two years. Also, both positive and negative changes in the operating environment – for example Covid-19 related changes in restrictions, corporate policies, geopolitical risks or individual behavior – can take several months to be reflected in our business performance.
After the emergence of the omicron variant, COVID-19 related restrictions on on-site visits have become increasingly unpredictable. This has affected especially the support we can provide for clinical trials and thus their progress. Rules may differ within the same project and between hospitals and companies, or often vary from one week to the next. This has led to a number of research projects being repeatedly delayed. These same limitations affect authorities, whose role is critical in medical projects. The limitations frustrate also our customers, who typically are keen to continue working on our projects. On the other hand, we see that in less regulated projects related to e.g. diagnostics we have been able to progress better and these now account for a larger share of the revenue. Many customers have also grown accustomed to Zoom meetings and are not limited in their traveling.
We continue making solid progress on many fronts. We remain committed to increasing both our production capacity as well as other capabilities through our investment program. Our investments are on track and within the budget. In fact, we have been able to take advantage of the temporarily lowered demand for certain specialized equipment caused by recent global turmoil, and negotiate better prices. These investments will bear fruit for 20 years. We have expectedly continued to successfully attract new talent, especially for analytics and software engineering. This should help us to continue tapping into the significant opportunities in the market. We continue to target a high rate of revenue growth, and given our high gross margins, growth should also enable us to retain our historically high degree of profitability.
Key figures
( | 1-3/2022 | 1-3/2021 | Change | 1-12/2021 |
Revenue | 1,601 | 2,204 | -27.4 % | 9,071 |
EBITDA | -418 | 1,379 | -130.3 % | 461 |
EBITDA-% | -26.1% | 62.6 % | -77.0 % | 5.1 % |
Operating result (EBIT) | -869 | 1,128 | -177.0 % | - 753 |
Operating result (EBIT), % of revenue | -54.3 % | 51.2 % | -93.8 % | -8.3 % |
Earnings from the period | -1,224 | 877 | -239.6 % | -5,061 |
Earnings per share (EUR) | -0.03 | 0.03 | -200.7 % | -0.15 |
Acquisition & scrapping of fixed and intangible assets | -3,628 | -815 | 345.3 % | 9,617 |
Free cash flow from operating activities | -4,046 | 564 | -817.1 % | -9,156 |
Cash & cash equivalents (at the end of the period) | 58,185 | 1,615 | 3,502.0 % | 62,978 |
Net debt | -48,968 | 4,749 | -1,131.2% | -53,415 |
Gearing ratio | -65.4 % | 44.7 % | -109.9 % | -70.1 % |
Equity ratio | 86.6 % | 50.0 % | 36.7 % | 87.0 % |
Staff at the end of period average (FTE) | 55 | 44 | 25.0 % | 52 |
Events after the reporting period
Proposals of the Shareholders’ Nomination Board:
On
Notice to the Annual General Meeting:
On
On
Financial reporting in 2022
During the year 2022,
- 1H22 Half-year Financial Report (1–6/2022): 19 August 2022
- 3Q22 Business review (1–9/2022):
20 October 2022
Webcast
Presentation materials will be available before the start of the event on the company’s website at www.modulight.com/reports-presentations/.
Annual General Meeting 2022
The Annual General Meeting will be held on
Board of Directors
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