Strong growth in 2014 revenues: up 32%
Continued improvement in gross margin: up 400 basis points
Q1 2015 revenues increase 53% driven by USA
EOS imaging (Paris:EOSI) (Euronext, FR0011191766 – EOSI), the pioneer in 2D/3D orthopaedic medical imaging, 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.Continued improvement in gross margin: up 400 basis points
Q1 2015 revenues increase 53% driven by USA
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
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
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.
- Net cash at December 31, 2014: €10.2 million
- First quarter 2015 sales: up 53% at €3.32 million
Revenue from equipment sales was €2.50 million, up 60% compared to first quarter 2014, corresponding to the sale of six EOS® systems, compared to four in the same period the previous year. Four systems were sold in the North American region, compared to one in first quarter 2014. The average sales price per system was €417,000, compared to €390,000 in first quarter 2014, driven by a strong contribution from sales reported in US$ and a positive impact of the exchange rate.
First quarter 2015 sales of maintenance contracts increased 41% to €0.63 million, compared to €0.45 million in first quarter 2014. This strong growth was driven by the increase in the EOS® system installed base.
Sales of consumables and related services were €0.19 million during the first quarter 2015, up from €0.15 million in first quarter 2014.
At constant rate, the increase in revenue over the first quarter is 49%.
2014 HIGHLIGHTS
- Important developments in the Company’s international business
- First installation in Vietnam in October,
- 30 new installations, which enabled the Company to surpass the key milestone of 100 installations worldwide,
- Strong growth in Asia, which accounted for 27% of total group revenue.
- Development of a service offering for orthopaedic surgery
- FDA approval for the new generation of sterEOS® software, which adds rapid analysis of sagittal balance to the existing product range.
- Secured additional funding
2015 RECENT HIGHLIGHTS
- Implementation of senior debt funding
- New installations at leading hospital sites
- First installation in Belgium at the worldwide leader Pellenberg hospital,
- First installation in the Dallas Fort-Worth region, the second institution in Texas to adopt the EOS system.
- FDA approval for marketing of the Micro Dose option
- US launch of hipEOS at AAOS 2015
Source and image credit: EOS imaging
Latest Articles
FDA, EOS imaging, orthopaedic imaging, financial results, revenues
Strong growth in 2014 revenues: up 32% Continued improvement in gross margin: up 400 basis points Q1 2015 revenues increase 53% driven by USA EOS imaging (...