Financial information April – June 2022
• Net sales amounted to SEK 3,403 thousand (4,390)
• Gross margin before depreciation was 50.0 percent (62.1)
• Operating costs SEK -40,035 thousand (-22,582), of which acquisition costs SEK -16,400 thousand
• Income after financial items was SEK -40,886 KSEK (-22,576)
• Earnings per share amounted to SEK -0.63 (-0.35)
• Cash and cash equivalents amounted to SEK 126.5 million (118.2) as of June 30
• The number of shares as of June 30 was 67,756,448 (62,493,290)
Financial information January – June 2022
• Net sales amounted to SEK 5,764 thousand (5,827)
• Gross margin before depreciation was 54.6 percent (56.7)
• Operating costs SEK -59,927 thousand (-38,080), of which acquisition costs SEK -16,400 thousand
• Income after financial items was SEK -61,866 thousand (-40,218)
• Earnings per share amounted to SEK -0.96 (-0.63)
Highlights second quarter
• Strong increase in direct sales in the US and through partners in Europe
• Collaboration with Masimo – globally leading Medtech-company
• Acquisition of Respiratory Motion in the United States
• Margins temporarily lower in the quarter due to a higher share of distributor sales
The installed base of TetraGraph® is growing and the consumption of disposable sensors is following as a result. During the second quarter, sales growth in Europe amounted to over 70 percent and in our direct sales organization in the US to over 100 percent. For the month of June, the corresponding figures were 125 percent and more than 200 percent, respectively. In the United States, revenues from sales of TetraSens® grew by 154 percent compared with the same period last year. The fact that sales growth does not appear in comparison with the second quarter of 2021 is due to a major inventory build-up order to South Korea of SEK 2.0 million that took place in the comparison quarter last year.
During the year, we won several large hospitals in the USA and the installation of TetraGraph® systems is now in full swing. During the quarter, evaluations in the USA led to us winning 15 contracts and only two hospitals were lost to competitors. In Europe, we are seeing accelerating growth and June was our best month to date with 50 TetraGraph® monitors installed. During the quarter, evaluations in Europe led to us winning 25 contracts and only three hospitals were lost to competitors.
We are very proud that in June we were able to announce our strategic collaboration with the American company Masimo – a global leader in products and systems for patient monitoring. Masimo has a large global installed base of monitors, and we are now connecting to their fast-growing patient monitoring solution Root®. The partnership with Masimo means that we will develop a common module that integrates the TetraGraph® instrument into Root®. The conditions are good for a sharp increase in the consumption of TetraSens® when we connect to Masimo's Root®.
During the quarter, we also completed the acquisition of Boston-based Respiratory Motion (RMI). The acquisition of RMI is fully in line with our vision of a world free of anesthesia and respiratory complications. RMI gives us the conditions to further accelerate the roll-out of TetraGraph® at the same time as it expands our business of monitoring patient’s respiratory function even outside the operating room. With RMI's unique monitoring system in the portfolio, we achieve sales synergies through our own sales force and distributor channels and increase the addressable patient volume by a factor of three.
RMI's ExSpiron system monitors respiratory function in patients in real time with a unique technology based on many years of research in the USA with the protection of 14 patent families and proprietary algorithms. ExSpiron is CE and FDA approved and validated on over 6,000 patients in more than 30 scientific publications. Like TetraGraph®, the ExSpiron system is based on a “razor and razorblade” sales model with a monitor and associated disposable sensors. The estimated annual total addressable market for ExSpiron in the United States alone is more than $ 4 billion. After the end of the quarter, the value of ExSpi¬ron has been confirmed by doctors at a large German university hospital. The feedback was very positive with, among other things, the following comment by Professor Weber “I can better ascertain and predict postoperative complications with the extra clinical information that ExSpiron provides. ExSpiron data will also help me determine the right clinical route postoperatively depending on patient’s breathing”.
This press release contains only parts of the complete interim report published on Senzime's website