EOS imaging Reports Full Year and Q4 2018 Sales

Jan. 7, 2019 06:00 UTC

FY 2018 revenue of €35.3 million (€36.0 million excl. forex impact)

  • €9.8 million of consolidated sales for the fourth quarter ended December 31, 2018
  • Year-end delays in transactions (NAM and EMEA) continued to impact Q4 sales revenue with commercial catch-up expected for 2019 and beyond
  • Strong momentum in recurring revenues supported by maintenance contracts (+34% sales growth)
  • Commercial traction mainly driven by Asia-Pacific (+12% sales growth)

PARIS--(BUSINESS WIRE)-- Regulatory News:

EOS Imaging (Paris:EOSI) (Euronext, FR0011191766 - EOSI - Eligible PEA - PME), the pioneer of 2D/3D imaging and data solutions for orthopedics, today announced its consolidated sales for the full year 2018 and the fourth quarter ended December 31, 2018 (non-audited, early reporting subject to minor changes).

Mike Lobinsky, CEO of EOS imaging, said: "As most capital equipment providers, we close a significant number of sales in the last quarter of the year, particularly in December. Our revenue for this quarter is well below our expectations, as multiple sales decisions were postponed despite a strong momentum early in the quarter. We are obviously disappointed by this unexpected counter performance, although all uncompleted transactions are not lost, only delayed. Our opportunity pipeline continues to grow in all geographies and we are very confident in our growth trajectory for 2019 and beyond.”

  • Full Year 2018 Sales Trend by Product Line
                                       
Sales / non-audited / € millions

As of December, 31

      FY 2018       FY 2017      

% Change

     

% Change
excl. forex
impact

     
Equipment Sales       26.3       30.0       -12%       -10%      
As % of total sales       74.6%       80.9%                      
Sales of Maintenance       7.9       5.9      

+34%

     

+36%

     
As % of total sales       22.5%       16.0%                      
Sales of consumables and services       1.0       1.2      

-13%

     

-12%

     
As % of total sales       2.9%       3.1%                      
Total Sales       35.3       37.1       -5%       -3%      
                                       

EOS imaging recorded annual revenue of €35.3 million, compared to €37.1 million as of full year 2017. The Company sold 64 EOS® systems in 2018, compared to 77 in the same period last year, with a positive trend in average selling price.

During the year, EOS imaging continued to grow and foster its customer base with a sustained objective to be recognized as a standard of care. The worldwide installed base grew to over 300 EOS® systems by the end of 2018.

Recurring revenues grew 26% to €8.9 million notably driven by a strong +34% increase of maintenance contract revenues from an enlarged installed base. Recurring revenues in 2018 represented 25% of total sales, compared to 19% of total sales in 2017.

  • Full Year 2018 Sales by Geography:
                                               

Sales / non-audited / € millions
As of December, 31

      FY 2018       FY 2017      

Change (%)

     

% Change
excl. forex
impact

             
EMEA       13.0       16.6       -22%       -22%              
North America       15.0       14.6       +3%       +7%              
Asia-Pacific       6.6       5.9       +12%       +12%              
Latin America       0.7       -       na       na              
Total revenue       35.3       37.1       -5%       -3%              
                                               

In EMEA, EOS imaging recorded a decline in revenue with sales reaching €13.0 million, mainly due to a slowdown in equipment sales. Investment decisions were delayed, but not cancelled, throughout the year. The pipeline increased significantly in all key markets, being France, Germany and the United-Kingdom.

North America delivered +3% growth compared to 2017 (+7% excluding forex impact), to €15.0 million despite unexpected Q4 delays in equipment purchases. A significant number of projected opportunities were pushed into 2019. The opportunity pipeline continues to grow steadily, and fosters sales momentum in 2019 and beyond.

Asia Pacific sales grew +12% compared to 2017, with a recorded revenue of €6.6 million. In China, revenues were impacted by a year-end change of distributor expected to fuel stronger growth in this market.

  • Quarterly Sales by Product Line
                       
Sales / non-audited / € millions

As of December, 31

      2018       2017      
      Q1       Q2       Q3       Q4       Q1       Q2       Q3       Q4      
Equipment sales       7.6       6.1       5.5       7.2      

5.5

     

7.7

     

6.7

     

10.1

     
Growth versus n-1 -1       38%       -21%       -19%       -28%                                      

% of total revenue

      79%       76%       65%       74%                                      
Sales of maintenance contracts       1.7       1.7       2.3       2.2      

1.4

     

1.4

     

1.5

     

1.7

     
Growth versus n-1 -1       24%       21%       56%       29%                                      

% of total revenue

      18%       22%       27%       22%                                      
Sales of consumables and services       0.3       0.2       0.2       0.4      

0.3

     

0.2

     

0.3

     

0.4

     
Growth versus n-1 -1       0%       -7%       -32%       ns                                      
% of total revenue       3%       3%       2%       4%                                      
Total sales       9.5       8.0       8.0       9.8                                      
Growth versus n-1 -1       34%       -14%       -6%       -19%       7.1       9.3       8.5       12.2      
                                                                       

EOS imaging sold 18 systems and recorded revenue of €9.8 million in the fourth quarter of 2018.

About EOS imaging
EOS imaging designs, develops and markets EOS®, a major innovative medical imaging solution dedicated to osteoarticular pathologies and orthopedics combining equipment and services and targeting a $2B per year market opportunity. EOS imaging has over 300 EOS® installations in more than 30 countries, including the United States, Japan, China and the European Union, delivering more than one million patient exams every year.

For more information, please visit www.eos-imaging.com.

EOS imaging has been selected to integrate the EnterNext © PEA - PME 150 index, composed of 150 French, listed companies on the Euronext markets in Paris.

Next publication: FY 2018 Results and Q1 2019 Sales on April 16th, 2019

EOS imaging is listed on Compartment C of Euronext Paris
ISIN: FR0011191766 - Ticker: EOSI

Contacts

EOS imaging
Valerie Worrall
CFO Ph: (+33) 1 55 25 60 60
investors@eos-imaging.com

Investor Relations (US)
Matt Picciano / Emma Poalillo
The Ruth Group
Ph: (+1) 646-536-7008 / 7024
EOS-imagingIR@theruthgroup.com

Press Relations (US)
Kirsten Thomas
The Ruth Group
Ph: (+1) 508-280-6592
kthomas@theruthgroup.com

 

Source: EOS imaging

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