Financial

EOS imaging Reports Its Full Year 2019 Sales

January 15, 2020 

PARIS–(BUSINESS WIRE)–Regulatory News:

EOS imaging (Paris:EOSI) (Euronext, FR0011191766 – EOSI – Eligible PEA – PME), a leader in 2D/3D orthopedic medical imaging and software solutions for 3D anatomical modeling and surgical planning, today announces its unaudited full-year sales for the financial year ending December 31, 2019.

  • €21.4 million total revenues generatedover the year 2019, marked by the change in the commercial cycle1
    • €9.7m of equipment revenue from the billing of 24 equipment, of which 13 in Q4 2019
    • €11.7m of recurring revenue, +31% growth compared to 2018, fueled by the continued growth of Maintenance, and the start of Advanced Orthopedic Solutions (AOS) revenue
  • €24.0 million equipment orders booked in 2019 of which €5.4m in Q4 2019
  • €35.7m of comparable commercial performance2 (+1% vs. 2018)
  • Launch in early December of EOSedge, the new generation imaging system
    • Best-in-class image resolution, optimized dose modulation and accelerated workflow enlarging utilization in musculoskeletal imaging
    • Regulatory approvals in the U.S (FDA), Europe (CE Mark), Canada and Australia
    • 9 EOSedge orders in 2019, of which 2 already installed

Mike Lobinsky, Chief Executive Officer of EOS imaging, commented: “2019 has been a pivotal year for the company. First, the change in the commercial cycle was a significant step to adapt to industry standards and improve our supply chain and cash management. It had an expected impact on our reported 2019 revenue, and we are pleased to note that billing momentum is improving quarter over quarter on a year-to-date basis. Second, the regulatory approval of EOSedge is a major milestone for EOS imaging. Customers are showing strong interest in this new equipment which fully integrates with our EOS Advanced Orthopedic Solutions. Obviously, the timing of receiving regulatory approval and the launch of EOSedge had a temporary impact on orders in Q4, however we expect a good upturn in orders in H1 2020. We are excited to start 2020 with a comprehensive, best in class offering for orthopedic surgeons and radiologists, and a growing installed base, which together will drive our growth”.

  • Full Year equipment orders temporarily impacted by the launch of new imaging system in the last quarter

EOS imaging booked 56 equipment orders, representing a total value of €24.04 million over the year 2019, to be compared with €26.47 million in 2018. The softness in equipment orders in the fourth quarter in NAM and EMEA, is related to the launch of EOSedge for which clients need to re-evaluate their investment choice between the two versions of systems now available.

Over the year 2019, ASP increased by +4%, driven by stronger pricing in NAM as well as premium pricing on EOSedge.

In NAM, the growing adoption of the Advanced Orthopaedic Solutions (AOS) composed of 3D Services, EOSapps 3D surgical planning, and EOSlink which delivers the EOS surgical plan into the operating room, is an important milestone for our future development. The recent launch of EOSedge associated with the combined solutions is generating accelerated interest from care providers on which the company intends to capitalize in 2020 and beyond.

In EMEA, the region increased its equipment orders by +4,4% driven by a very good momentum in France and an acceleration in Nordics. The successful first install of EOSedge in Lyon and the very positive feedback we have received from medical professionals has also provided us with a relevant experience base for marketing the new system, representing a solid growth driver for 2020.

In APAC, the 2020 sales dynamic should benefit from both the reorganization of the distribution network in China, which is now beginning to deliver mature projects, and from the regulatory approval of EOSedge recently obtained in Australia with already many interests from major institutions.

Equipment OrdersNon-audited / € million / As of December 3120192018
EMEA9.208.81
APAC5.095.80
NAM9.7611.16
LATAM0.71
TOTAL EQUIPMENT ORDERS24.0426.47
  • 2019 revenues reflecting the transition to the new commercial cycle

EOS imaging generated sales revenue of €21.40 million over 2019, of which:

  • €9.74 million of equipment sales from the billing of 24 equipment. As anticipated, H2 2019 marked the restart of equipment billing which increased in the last quarter. As a reminder it had been temporarily halted in H1 2019 following the change in the commercial cycle in January 2019.
  • €11.66 million of recurring revenues, i.e. +30.7% growth compared to 2018, led by a strong growth in maintenance revenues of €10.45 million (+32%), fueled by the growing installed base, and by the acceleration in the Consumables and Services. 14% of the install base customers now have an AOS contract, and most equipment orders booked in 2019 include AOS services, which are to be turned on at time of installation.

Additionally, the company has assessed the outstanding Customer Receivable, and booked a provision of €0.36m relative to receivables from prior years, which will reduce the full year net reported revenue.

Order Book value as of December 31, 2019, is €14.30m, consisting of €24.04m equipment orders taken in 2019, less €9.74m equipment sales delivered since the beginning of the year.

Comparable Commercial performance2 over the year reached €35.70 million compared to €35.39m in 2018, representing a +0.9% increase. A performance driven by +9% growth in EMEA offsetting a decrease in APAC (-5%) and the absence of equipment orders in LATAM, while commercial performance in NAM remained stable due to the timing of EOSedge launch.

Revenue by Product LinesNon-audited / Including forex impact3 / € millionAs of December 3120192018
Equipment9.7426.47
Maintenance contracts10.457.93
Consumables and services1.210.99
TOTAL REVENUE21.4035.39
Provision on receivable of prior years(0.36) 
NET TOTAL REVENUE21.0435.39
Equipment Order Book at end December14.30
Comparable Commercial Performance235.7035.39
Revenues by GeographiesNon-audited / Including forex impact3 / € millionAs of December 3120192018
EMEA10.3013.38
APAC3.916.38
NAM7.1614.93
LATAM0.030.71
TOTAL REVENUES21.4035.39
  • Q4 2019 equipment orders reflecting the December launch of EOSedge

EOS imaging booked 12 new equipment orders during Q4 2019, representing a total value of €5.4 million. This is a temporary consequence of the launch of EOSedge that has led customers to re-assess their purchase in front of a new offering. This slowdown is most visible in the US and is an indication of the strong interest for the new generation. The number of leads generated at RSNA, the world’s leading radiology congress which took place just after the FDA clearance at the beginning of December, increased by +116% from last year meeting, further highlighting significant business prospects.

Equipment OrdersNon-audited / € million / As of December 31Q4 2019Q4 2018
EMEA2.863.90
APAC1.470.46
NAM1.073.01
LATAM
TOTAL EQUIPMENT ORDERS5.407.37
  • €9.13m total revenue in Q4 2019 marking the on-going recovery of equipment billing

EOS imaging generated total revenue of €9.13 million over Q4 2019, of which:

  • €5.46 million of equipment revenue from the sales of 13 EOS® systems delivered during the quarter, increasing from to 2 in Q2 2019 and 9 in Q3 2019
  • €3.67 million of recurring revenue, including €3.30 million in maintenance revenue and €0.38 million in Consumables and Services

This significant improvement in reported equipment sales versus H1 2019 is linked to the maturity of the order book built up since January 2019.

Commercial performance2 over Q4 2019 amounted to €9.07 million compared to €9.88 million in 2018.

Revenues by GeographiesNon-audited / Including forex impact3 / € millionAs of December 31Q4 2019Q4 2018
EMEA3.705.18
APAC2.620.63
NAM2.784.07
LATAM0.03
TOTAL REVENUES9.139.88

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Josh Sandberg

Josh Sandberg is the President of Ortho Spine Partners and Partner for The De Angelis Group. He also serves as Co-Founder and Editor of OrthoSpineNews.

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