AI Terminal
AMA Corporation PLC Corporation
Earnings Release • Oct 31, 2023
8173_iss_2023-10-31_46f28190-1032-46e8-a41c-a67bc4f5992f.pdf
Earnings Release
Open in ViewerOpens in native device viewer
2023 half-year earnings Thirdquarter revenue
- § Efficiency of business adaptation strategy in a persistently slow market environment: revenues down by -22% in the 1st half and net income up by +52% compared with the 1st half of 2022.
- § Revenues of €0.7m in Q3 2023, compared with €1.0m in Q3 2022, with a stable customer base.
- § Net cash position of €9.5m, enabling AMA to maintain its investments in innovation and, in particular integrating Artificial Intelligence into AMA's solutions.
AMA CORPORATION PLC ("AMA") (ISIN GB00BNKGC5 - mnemonic ALAMA), publisher and integrator of secure productivity applications designed for connected mobile workers, announces its consolidated half-year earnings at June 30, 2023, approved by the Board of Directors at its meeting on October 30, 2023.
| Unaudited consolidated earnings - IFRS (€'000) | First half of 2023 | First half of 2022 | Change |
|---|---|---|---|
| Revenues | 1 664 | 2 125 | -22% |
| Adjusted gross margin1 | 1 020 | 1 473 | -30% |
| % of revenues | 61,3% | 69,3% | -8 pts |
| Staff costs | (3 407) | (6 045) | -44% |
| Adjusted EBITDA2 | (3 320) | (4 351) | +24% |
| EBIT | (4 061) | (6 883) | +41% |
| Non-current operating losses | 0 | (1 013) | |
| Financial income (expense) | (40) | (18) | |
| Income from ordinary operations before tax | (4 101) | (7 914) | +48% |
| Consolidated net income | (4 114) | (8 558) | +52% |
Results for the 1st half of 2023: effective adaptation plan in a market context that remains slow
At the end of the 1st half of 2023, the AMA Group recorded revenues (IFRS, at current exchange rates) of €1.7m, compared with €2.1m in the 1st half of 2022. In the current economic context, customers are showing caution in their digital transformation investments.
The decrease in the adjusted gross margin rate is temporary, as it is linked to actions to clear inventories (sale of obsolete hardware to brokers), while the product mix between software and hardware remains similar to the previous year.
2 Adjusted EBITDA corresponds to EBIT + depreciation of property, plant and equipment and intangible assets + share-based payments in accordance with IFRS 2.
1 The adjusted gross margin corresponds to the margin on purchases consumed excluding the depreciation of inventory.
AMA reacted proactively to market slowdown by initiating a vast cost-cutting plan over the 2nd half of 2022. This resulted in a €2.6m (-44%) reduction in personnel costs between the 2nd half of 2022 and the 1st half of 2023.
This significantly reduced the current operating loss from €(6.9)m in the 1st half 2022 to €(4.1)m in the 1st half 2023.
After taking into account the financial result of €(40)k and a tax charge of €(13)k, the AMA Group's consolidated net income is €(4.1)m for the 1st half 2023 compared with €(8.6)m for the same period last year.
3rd quarter 2023 revenues: a loyal customer base
AMA posted revenues of €0.7m in Q3 2023, compared with €1.0m in Q3 2022. Despite this decline, AMA has retained its customer base of over 425 accounts at the end of September, including some of the world's largest groups (Air Liquide, Alstom, Boehringer, Enedis, KPMG, Millipore Sigma), with the churn rate remaining limited to 7% of 2022 revenues.
AMA's Sales & Marketing strategy continues to prioritize the broader adoption of its solutions. Specifically, in the 1st half of 2023, AMA introduced a new commercial offer called the "Enterprise Model" to accelerate the deployment and usage of XpertEye. This includes offering license packages and volume discounts. Each month, more customers and prospects are adopting this new offer, enabling them to progressively implement XpertEye across their organizations.
In the rapidly advancing healthcare sector, where digital transformation is gaining momentum, AMA continues to roll out its XpertEye solution within SAMU (French Medical Emergency Services) and SDIS (French Firefighters Departments). An increasing number of them are using AMA's solution to enhance their ability to evaluate and respond more efficiently to emergency situations. The SAMU 75 (Paris) has just joined the 3 other SAMUs (92, 93, 94) of the APHP (Paris public health and hospital system) in adopting AMA's visio-regulation solution. This adoption aims to streamline care coordination and optimize the allocation of response resources.
Technological advances: Interoperability and Artificial Intelligence
AMA continues to innovate, with four major new versions of XpertEye deployed each year. The autumn release of XpertEye will be released in November.
AMA is working closely with ARIANN, a sister company of the Guillemot Group, to integrate new AIpowered features designed to boost the productivity of XpertEye users. This involves leveraging the data generated during calls or work sessions with XpertEye, including audio, video, images, and text within a highly secure environment.
AMA also plans to develop connectors to its customers' Artificial Intelligence tools or other third-party applications. This will enable them to securely exploit the data generated when using XpertEye.
Cash position
On June 28, 2023, AMA Corporation Plc carried out a capital increase of €7.99m, giving it a solid financial position, with increased equity and cash.
On June 30, 2023, the Group's cash position stood at €12.6m (€(9.5)m net debt), compared with €8.6 m (€(5.1)m net debt) on December 31, 2022, ensuring a cash horizon in excess of 12 months. The financing lines already granted, amounting to €12m at the date of this release, have not been activated.
This solid financial situation, together with the support of its majority shareholder and banking partners, will enable AMA to uphold its R&D investments to continuously improve the interoperability of its solution and seamlessly integrate artificial intelligence.
Outlook
The release of new functionalities brought by V8 to customers in Q4 2023 and the integration of AI will enable AMA to expect significant growth in the use of its solutions in 2024.
Availability of the Half-Yearly Financial Report: AMA Corporation PLC's financial report for the 1st half of 2023 will be made available on the morning of October 31, 2023. It will be available on the www.amaxperteye.com website, under "Investors", "Documentation" section.
Next press release: 4th quarter and full-year 2023 revenues: January 31, 2024 (before market opening).
About AMA
AMA, a publisher and integrator of secure productivity applications, is helping medical institutions and industrial organizations of all sizes accelerate their digital transformation. AMA's market leading XpertEye suite of applications has been deployed in more than 100 countries, addressing a wide range of use cases like remote diagnostics, inspection, planning, and workflow management. These unequaled remote interactive collaboration solutions empower customers to improve productivity, speed up resolution time, and maximize uptime while reducing their carbon footprint.
With offices in Europe, APAC, and the USA AMA works in every time zone and can reach its customers wherever they are.
AMA is B Corp certified, demonstrating its ongoing commitment to sustainability, social responsibility, and business ethics.
AMA is listed on Euronext Growth Paris (GB00BNKGZC51 - ALAMA). More information on www.amaxperteye.com
Disclaimer: This press release contains statements that are not historical facts, including, but not limited to, statements regarding future results and other future events. These statements are based on the current vision and assumptions of AMA Corporation PLC's management. They involve known and unknown risks and uncertainties that could cause actual results, profitability or events to differ materially from those anticipated. In addition, AMA Corporation PLC, its shareholders and its respective affiliates, directors, officers, advisors and employees have not verified the accuracy of, and make no representations or warranties regarding, any statistical information or forward-looking information contained in this release that originates or is derived from third-party sources or industry publications. Such statistical data and forward-looking information are used in this press release for information purposes only.
Contacts
Investor relations and financial media Perrine Fromont, CFO - +33 223 441 339 – [email protected] Marie Calleux, Calyptus - +33 609 685 538 - [email protected]
Corporate press : Esther Duval +33 689 182 343 [email protected]
APPENDICES
Unaudited first-half earnings, approved by the Board of Directors on October 30, 2023.
Condensed half-year income statement
| IFRS (€'000) | H1 2023 | H1 2022 |
|---|---|---|
| Revenues | 1,664 | 2,125 |
| Purchases consumed | -535 | -452 |
| Other Income | 232 | 2,433 |
| Other purchases and external expenses | -1,319 | -2,403 |
| Staff costs | -3,407 | -6,045 |
| Depreciation of property, plant and equipment and intangible assets | -581 | -2,251 |
| Other expenses | -114 | -290 |
| EBIT | -4,061 | -6,883 |
| Non-current operating income | 0 | -1,013 |
| Financial income | 52 | 58 |
| Financial expenses | -92 | -76 |
| Net financial income (expense) | -40 | -18 |
| Pre-tax income | -4,101 | -7,914 |
| Corporate income tax income | -13 | -644 |
| Net income for the period | -4,114 | -8,558 |
| Earnings for the period attributable to owners of the parent | -4,079 | -8,464 |
| Non-controlling interests | -35 | -95 |
Quarterly revenues
| Quarterly revenues - IFRS (€m) (at constant exchange rates) |
2023 | 2022 | Change |
|---|---|---|---|
| First quarter | 0.8 | 1.1 | -24% |
| Second quarter | 0.9 | 1.0 | -16% |
| First half | 1.7 | 2.1 | -21% |
| Third quarter | 0.7 | 1.0 | -36% |
Condensed half-year balance sheet
| IFRS (€'000) | 2023.06 | 2022.12 |
|---|---|---|
| Property, plant and equipment | 3 | 27 |
| Intangible assets | 484 | 731 |
| Rights of use | 754 | 1,024 |
| Financial assets | 170 | 218 |
| Deferred tax assets | 58 | 56 |
| Non-current assets | 1,468 | 2,056 |
| Inventories | 746 | 927 |
| Current tax receivables | 462 | 398 |
| Trade and other receivables | 763 | 1,054 |
| Other current assets | 714 | 611 |
| Cash and cash equivalents | 12,641 | 8,603 |
| Current assets | 15,325 | 11,592 |
| Total assets | 16,793 | 13,648 |
| Share capital | 7,680 | 3,207 |
| Issue premiums | 37,513 | 34,161 |
| Translation reserves | 51 | 69 |
| Retained earnings | -35,684 | -31,759 |
| Equity attributable to owners of the parent | 9,560 | 5,679 |
| Non-controlling interests | 79 | 117 |
| Total shareholders' equity | 9,640 | 5,796 |
| Borrowings and financial debt | 2,443 | 2,813 |
| Lease liabilities | 201 | 444 |
| Defined benefit plan liabilities | 119 | 106 |
| Deferred tax liabilities | 1 | 1 |
| Non-current liabilities | 2,763 | 3,368 |
| Bank overdrafts | 0 | 0 |
| Current tax liabilities | 1 | 2 |
| Borrowings and financial debt | 690 | 691 |
| Lease liabilities | 562 | 583 |
| Trade and other payables | 796 | 752 |
| Client contract liabilities (deferred income) | 1,386 | 1,453 |
| Provisions | 60 | 134 |
| Other liabilities | 895 | 867 |
| Current liabilities | 4,390 | 4,484 |
| Total liabilities | 7,154 | 7,852 |
| Total shareholders' equity and liabilities | 16,793 | 13,648 |
Half-year cash-flow statement
| IFRS (€'000) | H1 2023 | H1 2022 |
|---|---|---|
| Net income for the period | -4,115 | -8,558 |
| Adjustments for: | ||
| Depreciation of property, plant and equipment | 562 | 1,103 |
| Depreciation of intangible assets | 25 | 1,152 |
| Net financial income (expense) | 40 | 18 |
| Income from disposal of property, plant and equipment | 17 | 91 |
| Cost of share-based payments | 160 | 130 |
| Corporate income tax income | 14 | 644 |
| Other items | -65 | 728 |
| Total adjustments | 751 | 3,866 |
| Total operating cash flow | -3,363 | -4,692 |
| Change in: | ||
| Inventories | 175 | -231 |
| Trade and other receivables | 285 | 967 |
| Contract liabilities | -55 | -442 |
| Advances and deposits | 28 | 83 |
| Trade and other payables | 41 | -564 |
| Employee benefits and provisions | 6 | 4 |
| Other current receivables / payables | -88 | -274 |
| Other working capital requirement items | ||
| Total changes | 391 | -458 |
| Cash flow from operating activities | -2,972 | -5,148 |
| Tax paid | -79 | -241 |
| Net cash from operating activities | -3,051 | -5,390 |
| Acquisition of property, plant & equipment & intangible assets | -30 | -21 |
| Income from disposal of property, plant & equipment & | -3 | -1 |
| intangible assets | ||
| Capitalized development costs | 0 | -2,195 |
| Investment subsidies (incl. research tax credit offsetting capitalized costs) | ||
| Increase in financial assets | -14 | -18 |
| Decrease in financial assets | 54 | 21 |
| Interest received | 11 | 0 |
| Net cash from investment activities | 19 | -2,215 |
| Capital increase | 7,824 | 0 |
| Receipts from new borrowings and financial debt | 0 | 2,607 |
| Repayment of borrowings and financial debt | -368 | -1,316 |
| Payment of lease liabilities | -294 | -626 |
| Acquisition of non-controlling interests | -6 | -12 |
| Interest paid on borrowings and current accounts | -45 | -27 |
| Interest paid on lease liabilities | -12 | -11 |
| Net cash from financing activities | 7,099 | 615 |
| Net change in cash and cash equivalents | 4,066 | -6,989 |
| Cash and cash equivalents at January 1 | 8,603 | 20,641 |
| Impact of the change in exchange rates on cash held | -28 | 30 |
| Cash and cash equivalents at June 30 | 12,641 | 13,681 |
