Strong growth in 2014 revenues: up 32%
Continued improvement in gross margin: up 400 basis points
Q1 2015 revenues increase 53% driven by USA
PARIS--(BUSINESS WIRE)--EOS imaging (Paris:EOSI) (Euronext, FR0011191766 – EOSI), the pioneer in 2D/3D orthopaedic medical imaging, today announced its consolidated annual results for the year ended December 31, 2014, as approved by the Company’s Board of Directors on April 20, 2015. EOS also reported first quarter 2015 revenue.
Marie Meynadier, CEO of EOS imaging, commented: “In 2014 we made excellent progress in the company’s international expansion, highlighted by strong growth in Asia-Pacific. This was complemented by regulatory approval to market the EOS system in important new geographies such as South Korea and Brazil, and new installations of our system around the world. The success of our new hipEOS and Micro Dose products demonstrates the real-world demand for integrated orthopaedics solutions based on the EOS system’s unique low dose 2D/3D imaging. With regard to financial results, we delivered another year of sharp improvement in gross margin, which along with prudent expense management, also boosted earnings.
“First quarter 2015 revenues grew an impressive 53%, driven by an upturn in system sales to customers in the United States. This positive momentum, which began late in 2014, confirms the company’s ability to leverage an improved capital spending environment to drive adoption of the EOS system by North American hospitals.”
2014 FINANCIAL HIGHLIGHTS
- Strong revenue growth in 2014 : 32% increase to €20.1 million
EOS imaging reported 2014 revenues of €20.1 million, up 32% from 2013.
Equipment sales were €17.2 million, a 28% increase. This included the sale of 44 EOS® systems. Sales of maintenance contracts increased 37% to €2.1 million as a result of the increase in the Company’s installed base. Sales of consumables and related services were €0.8 million.
In addition, the Company received €1.6 million in public grants in 2014 to support its innovation, including a research tax credit, recorded as “other income”.
- Strong improvement in gross margin and earnings
The Company’s ongoing reduction in production and maintenance costs contributed to a further improvement in gross margin, which represented 47% of revenue in 2014 compared to 43% in 2013. This equates to an increase of 400 basis points for the year and 1,900 basis points in aggregate over the last three financial years.
Total operating expenses were €27.9 million in 2014, up 21% compared to 2013, while operating income increased by more than 30%.
Sales and marketing expenses increased 35% to €6.9 million. Research and development expenses, up 23%, amounted to €3.2 million. Before IFRS adjustments, 2014 R&D costs increased by just 4%.
The Company’s operating loss was €6.15 million, which represents 30% of revenues, an improvement from 42% in 2013.
The Company reported a 2014 net loss of €5.25 million as compared to a €5.88 million loss in 2013, an improvement of 11%.
The Company’s total number of employees was 106 as of December 31, 2014, as compared to 101 at December 31, 2013.
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Income statement |
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€ millions |
2014 |
2013 |
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| Operating income | ||||||||
| Revenue | 20.06 | 15.17 | ||||||
| Other income | 1.66 | 1.50 | ||||||
| Total income | 21.72 | 16.67 | ||||||
| Operating expenses | ||||||||
| Direct cost of sales | -10.62 | -8.69 | ||||||
| Gross margin | 9.44 | 6.48 | ||||||
| As a % of revenues | 47% | 43% | ||||||
| Indirect cost of production and services | -2.76 | -2.25 | ||||||
| Research and development | -3.21 | -2.60 | ||||||
| Sales & marketing | -6.88 | -5.12 | ||||||
| Regulatory expenses | -0.65 | -0.57 | ||||||
| Administrative costs | -3.25 | -2.69 | ||||||
| Total operating expenses (excluding direct cost of sales and share-based payments) | -16.75 | -13.23 | ||||||
| Share-based payments | -0.50 | -1.13 | ||||||
| Total operating expenses | -27.87 | -23.04 | ||||||
| Operating income/(loss) | -6.15 | -6.37 | ||||||
| Net income/(loss) | -5.25 | -5.88 | ||||||
| Audited data | ||||||||
- Net cash at December 31, 2014: €10.2 million
As of December 31, 2014, EOS imaging had a net cash position of €10.2 million as compared to €15.7 million on December 31, 2013. The company had shareholders’ equity of €25.5 million at the end of December 2014 as compared to €30.1 million at December 31, 2013.
- First quarter 2015 sales: up 53% at €3.32 million
EOS imaging reported first quarter 2015 revenue of €3.32 million, an increase of 53% over first quarter 2014, driven primarily by strong new business in the United States.
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