EUGENE, OREGON, US – Electrical Geodesics, Inc. (“EGI” or the “Company”), a leading neurodiagnostic medical technology company, today announces its unaudited interim results for the six months ended 30 June 2015.
Financial Highlights
? As flagged in the trading update issued in July, H1 2015 revenues were below expectations. At $5.2m revenues were some 10% below the $5.8m achieved in H1 2014.
o Adverse impacts came from the effect of the strong US$ on European sales and uncertainties in the China market in particular as a result of new controls over contractual terms.
o In addition, partly as a result of delays in finalizing the Net Station 5.2 software and other product enhancements, some supplier issues and the naturally long buying cycle time in the research and hospital capital goods markets, some larger orders did not complete as scheduled by the period end.
o Strong grant income of $0.6m (H1 2014: $0.1m) brought total receipts (the aggregate of revenues and other income) in H1 2015 to $5.8m (H1 2014: $5.9m).
? Gross margins improved slightly to 60% (H1 2014: 59%), and with costs contained at the same levels as H1 2014 at $5.8m, net losses were slightly lower at $2.1m (H1 2014: $2.3m).
? Net cash at period end $1.4m ($1.2m net cash at start of year) after receipt in March of $2.5m net from the issue for cash of 3,076,923 new common shares
? Invoice factoring facilities in place to help manage cash flows.
Operating Highlights
? Net Station 5.2 has been well received by beta customers, solving many of the problems unique to research EEG studies.
? The US FDA granted an Investigational Device Exemption for the Geodesic Transcranial Electrical Neuromodulation (GTEN) for a safety and feasibility trial for treating epilepsy.
? A GTEN study with normal volunteers has shown significant suppression of cortical excitability with EGI’s novel pulsed protocol, supporting the application to seizure suppression in epilepsy.
? EGI and EB Neuro, EGI’s corporate partner in Italy, have collaborated on an Investigational Device Exemption application to the FDA for dense array EEG guidance of repetitive transcranial magnetic stimulation (rTMS) for the treatment of focal epilepsy.
Don Tucker, PhD, Chairman and CEO, said:
“Although we were surprised and disappointed with our poor financial performance in the first half of the year, we are encouraged by the strong customer response to the new products we are now bringing to market. We have made the necessary adjustments to manage resources, and are now confident of moving towards self-sustainability in the near term. The investments we have made in the last 3 years are now bearing fruit, yielding improving revenue prospects in clinical as well as research markets that give us grounds for increasing confidence for H2 2015 and for 2016. The evidence continues to be strong that non-invasive neuromodulation will be a significant new treatment modality in many neurological disorders.”
For more information contact:
EGI
US: Ann Bunnenberg, COO
+1 541 687 7962
Peel Hunt LLP (NOMAD and Broker)
+44 (0) 20 7418 8900
James Steel
FTI Consulting (PR Advisors)
+44 (0) 20 3727 1000
Simon Conway, Mo Noonan
Notes to Editors
Electrical Geodesics, Inc. in Summary
About EGI
Founded in 1992, EGI designs, develops and commercialises a range of non-invasive neurodiagnostic products used to monitor and interpret brain activity based on its proprietary dense array electroencephalography (“dEEG”) platform technology. The Company’s technology uses up to 256 sensors, providing much higher resolution brain activity data compared to conventional 8 or 16 channel EEG and is used in medical, clinical and research settings in a diverse range of applications including important areas such as the diagnosis and monitoring of epilepsy, neurosurgical planning, sleep assessment, and many others.
EGI’s dEEG systems, available in the GES 300 and now the GES 400 lines, capitalize on the Company’s unique Hydrocel Geodesic Sensor Net which allows faster, easier, and more convenient placement of many EEG sensors in an even distribution over the entire scalp, providing more accurate and precise diagnosis and measurement. EGI’s technology is now widely used in neuroscience research laboratories and is becoming more commonly used in clinics, care centers, and hospitals around the world. Data is measured and visualised using EGI’s proprietary amplifier technology and software, providing a complete, advanced, high-resolution EEG platform. The Company’s products are compatible with multiple diagnostic and imaging technologies, including magnetic resonance (MR) imaging, functional MRI (fMRI), and magneto-encephalography (MEG).
See www.egi.com for more information on the Company.
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