Optos PLC Reports Positive Outlook in Preliminary FY 2013 Results

By

LONDON— Optos PLC (LSE: OPTS), a leading medical retinal imaging company, announced on Nov. 22 its preliminary results for the year ended Sept. 30, 2013. All figures are reported in US$, the company’s reporting currency. Optos’ product range now includes ultra-widefield imaging, OCT, visual acuity, perimetry and treatment laser products.

Citing a “positive underlying financial performance,” Optos reported revenue and other operating income was $159.5 million, compared to $196.4 million in the prior fiscal year.

Said the management statement, “We successfully grew the customer base substantially during the year. However, due to the rental profile there were far fewer renewal opportunities compared to the previous year. Therefore, combined revenue and other operating income fell. On an underlying basis, treating all payments receivable in the period from rental contracts as operating leases, we grew 4 percent.

Net debt for the group was reduced by 18 percent to $39.4 million, compared to $47.9 million in fiscal year 2012.

Optos reported a record level of installations of its retinal imaging equipment, with 1,271 installations for the period, with its overall installed customer base growing 25 percent for 5,945 for the period. The company said that there was “strong demand” for its Daytona units, with 1,145 devices installed this year and over 470,000 Tx devices installed globally including into key ophthalmology centers in the U.S., Japan, Germany and the Middle East.

The company also cited its investment in pipeline products and several clinical studies during the course of the year which reflected positive results and usage of retinal imaging.

The company expanded globally, with territories outside of North America contributing 30 percent of total revenue in FY13, up from 25 percent last year. Optos also reported that its international installed base grew by 58 percent during the year.

North America continues to be Optos’ main market and, “although revenue was down in the year due to the reduced number of renewal opportunities, the installed base increased by 18 percent,” the report said. “We have also started to develop business in South America, which represents an excellent opportunity, particularly in Brazil.”

“In Europe, the picture has been mixed due to the challenging economic conditions. We have seen reasonable customer growth in Northern Europe, although not as strong as we would have liked, and in Southern Europe it has been difficult. The Middle East represents a significant opportunity for us, in particular around diabetes. We have, therefore, established a presence in Dubai to support this important future market. The key international growth markets were Australia, through the OPSM contract, and Asia, where we continued to expand our presence in South Korea, Hong Kong and Taiwan, as well as maintaining strong sales in Japan, both for the Tx and Daytona devices.”

Roy Davis, CEO of Optos, said, “Following a challenging start to the year, we delivered underlying revenue growth and improved cash generation while making good progress with the roll out of Daytona. The 25 percent increase in our installed customer base—our largest annual increase yet—includes the placement of 1,145 Daytona devices and demonstrates the increasing value of our proprietary technology to eye health care professionals globally.

“With strong sales of Daytona, our new products progressing well, the building body of clinical evidence and a broadened geographical reach, the board is confident that Optos is well placed to drive sales and profitability in 2014.”