Opsens Inc T.OPS

Healthcare Medical Devices

OpSens Inc. is a medical device cardiology-focused company. The Company offers an advanced optical-based pressure guidewire that aims at improving the clinical outcome of patients with coronary artery disease. The Company’s segments include Medical and Industrial. The Medical segment focuses on physiological measurements, such as Fractional Flow Reserve (FFR) and Diastolic Pressure Ratio (dPR) in the coronary artery disease market and also supplies a range of miniature optical sensors to measure pressure and temperature to be used in a range of applications that can be integrated into other medical devices. The Industrial segment develops, manufactures and installs fiber optic sensing solutions for critical and demanding industrial applications. Its flagship product, the OptoWire, is a second-generation fiber optic pressure guidewire designed to provide the lowest drift in the industry and lesions access. It is approved for sale in the United States, European Union, Japan and Canada.

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Opsens Inc

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Post by retiredcfon Jan 13, 2022 10:32am

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Post# 34312491

RBC

January 13, 2022

Outperform

Speculative Risk

TSX: OPS; CAD 2.67

Price Target CAD 4.00

Opsens Inc.

FQ1/22 results impacted by the ongoing COVID-19 challenges; in line with our expectations

Our view: OpSens reported FQ1/22 (Nov-qtr) revenues at $8.1MM, in line with RBCe ($8.1MM) and marginally below consensus ($8.4MM). Revenues were flat sequentially (+0.4% q/q) and down YoY (-2.9%). Management noted that FQ1/22 remained challenging due to the ongoing negative impact of COVID-19 on procedure volumes. Gross margins at 51% came above RBCe (50%). Net loss at $2.1MM during the quarter was in line with RBCe (-$2.1MM) but below consensus (-$1.3MM) and FQ4/21 (-$1.2MM). On the earnings call, we expect the focus to be on the operational outlook given worsening COVID-19 trends and additional updates on the approval timelines of SavvyWire.

First impression:

FQ1/22 revenue of $8.1MM (+0.4% q/q and -2.9% y/y) came in line with RBCe ($8.1MM) and marginally below consensus ($8.4MM). Total medical revenues were $7.3MM (flat q/q), including FFR and dPR sales of $4.9MM (-8% q/q). Other medical revenues were $2.4MM (+20% q/q). Management noted that FQ1/22 remained challenging due to the ongoing negative impact of COVID-19 on procedure volumes. Industrial revenues were $0.7MM (+5% q/q), below RBCe ($0.8MM). Revenues in the quarter were also impacted by FX headwinds ($0.4MM). FQ1 revenues include the $0.5MM grant the company received from the Canadian government.

FQ1 EPS of -$0.02 in line with our -$0.02 forecast. Gross margins were 51%, above RBCe (50%) and FQ4/21 of 50%. Operating expenses at $6.0MM (+13% q/q) were marginally ahead of RBCe ($5.9MM). We expected q/q operating expenses to increase as the company prepares for the commercial launch of SavvyWire once it receives regulatory approvals in the US and Canada. OpSens reported net loss of $2.1MM during the quarter, in line with RBCe (-$2.1MM) but below consensus (-$1.3MM) and FQ4/21 (-$1.2MM).

Cash position and pre-payment of term loan: OpSens ended FQ1 with a cash position of $32.0MM (vs. $38.6MM as of Aug-21). In Sep-21, the company prepaid the balance of the term loan ($5.8MM) which will result in an annualized interest savings of ~$0.25MM.

Conference call at 11:00am ET today. Dial-in details: (833) 756-0865 or (412) 317-5754 or via a live webcast (link).