EOSI News
EOS imaging: 2011 full-year results in line with expectations PrintAlert
Regulatory News:
EOS imaging (Paris:EOSI)(ISIN:FR0011191766) the pioneer in 2D/3D orthopaedic medical imaging today announces its consolidated full-year results for the year ended 31 December 2011, as approved by the Board of Directors at its meeting of 25 April 2012, as well as its revenues for the first quarter of 2012, ended 31 March 2012.
In millions of euros 31 Dec 2011 31 Dec 2010
Operating income
Revenues 6.94 4.87
Other income
0.65 2.11
Total income 7.59 6.98
Operating expenses
Direct costs of sales -4.99 -3.53
Indirect production and services costs -1.63 -1.06
Research and development -1.92 -2.08
Sales and marketing -3.24 -2.45
Regulatory -0.26 -0.21
Administrative costs -2.11 -2.00
Share-based payments -0.06 -0.43
Total operating expenses -14.2 -11.8
Operating profit -6.62 -4.78
Net income -6.55 -4.68
Audited financial statements
Strong growth in 2011 revenues: up +42.5%
EOS imaging generated total 2011 revenues of €6.94 million, a year-on-year increase of +42.5%.
With 16 EOS® equipments sold during 2011, compared with 12 in 2010, equipment sales rose by +44.9% relative to 2010 to €6.26 million, representing 90.2% of total revenues.
Sales of services, which essentially consist of maintenance contracts, came to €0.68 million in 2010, an increase of +23.3%, representing 9.76% of total 2011 revenues.
Other income, consisting of subsidies and research tax credits, amounted to €0.65 million compared with €2.11 million in 2010. This decline relates primarily to the reduction in subsidies, a significant proportion of which relates to programmes ending in 2011 and 2012. During the second half of 2011, the company established its position in new programmes that will take over from old programmes as of 2012. Total income for 2011 therefore came to €7.59 million, an increase of +8.77%.
Full-year results in line with the Group’s expectations
As announced, the transfer of EOS production to a new subcontractor allowed for a reduction in the average equipment production cost of approximately 10% at the end of the year. The full effect of this will be seen in 2012.
Operating expenses totalled €14.2 million compared with €11.8 million in 2010, comprising mainly direct costs of sales (35.1% of operating expenses), sales and marketing costs (22.8%) and research and development costs (13.5%). Administrative costs now account for less than 15% of the Group’s operating expenses. The increase in these items is in line with the increase in the number of equipments installed and EOS imaging’s development strategy.
EOS imaging hired new employees during the year, bringing the average headcount to 54 people in 2011 compared with 47 in 2010. The Management Committee was strengthened with the addition of a Marketing Director for Europe and a Chief Financial Officer.
Taking account of net financial items, the Group sustained a net loss of -€6.55 million in 2011.
As of 31 December 2011, cash and cash equivalents stood at €1.71 million. After allocating net income for the year, consolidated equity was €1.73 million. Following the capital increase carried out at the time of the IPO on NYSE Euronext in Paris at the start of 2012, EOS imaging now has a net cash position of €34 million.
First quarter 2012 consolidated revenue
During the period ending 31 March 2012, EOS imaging generated revenues of €0.56 million, up +18.3% compared with the first quarter of 2011.
In millions of euros 31 March
2012 31 March
2011 %
change
Equipment sales 0.41 0.36 +15.0%
% of total revenues 73.3% 75.5%
Sales of services 0.15 0.12 +28.4%
% of total revenues 26.7% 24.5%
Total revenues 0.56 0.48 +18.3%
Unaudited financial statements
Revenues from equipment sales rose by +15.0% to €0.41 million, representing 73.3% of revenues for the period.
During the first quarter of the year, sales of services accounted for 26.7% of consolidated revenues, up +28.4% at €0.15 million.
Marie Meynadier, Chief Executive Officer of EOS imaging, comments: “2011 has allowed EOS imaging to consolidate its position as the leading innovative modality in osteo-articular imaging. With strong revenue growth and adoption of our technology by prestigious institutions, we are confident about the company’s ability to accelerate its development. Our successful IPO has given us the financial resources to roll out our business plan. Over the next few months, we will strengthen our sales teams and create a winning sales and marketing organisation worldwide, targeting primarily countries presenting a high level of demand for equipment, such as the United States.”
