AI assistant
ContextVision AB Interim / Quarterly Report 2020
9979_ir_2020-08-13_ecf5e499-e4e0-46da-aa3d-1cda4cefba69.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
A
ContextVision
CONTEXTVISION AB SECOND QUARTER 2020
Q2 HIGHLIGHTS
- First Digital Pathology product CE-marked and released for sales
- New ultrasound product released for sales
- Increase in x-ray sales
- Solid cash position
Q2 FINANCIAL DATA
- Sales of 20.1 MSEK (23.1)
- Operating result of 1.6 MSEK (5.4) and operating margin of 8.0% (23.4%)
- Earnings per share of 0.2 SEK (0.5)
- EBITDA of 3.7 MSEK (7.3)
CONTEXTVISION AB 556377-8900//SECOND QUARTER 2020 FINANCIAL RESULTS/PAGE 2 OF 13
ENTERING THE DIGITAL PATHOLOGY MARKET WITH OUR FIRST PRODUCT FOR PROSTATE CANCER, SPEARHEADING THE MEDICAL IMAGING MARKET WITH A NEW ULTRASOUND PRODUCT, AND A STRENGTHENED ORGANIZATION.
FREDRIK PALM, THE COMPANY'S CEO COMMENTED:
INIFY® Prostate screening was released and CE marked in June, an important milestone for the company. In addition, we launched our next-generation ultrasound product. Sales in the second quarter ended at 20.1 MSEK. Combined with a strong Q1, sales for the first six months of the fiscal year ended at 49.2 MSEK, an increase of 11.3% compared to the first HY 2019. EBITDA reached 17.6 MSEK and cash position end of June was 45.2 MSEK.
Digital Pathology
INIFY Prostate Screening, our first decision support tool for diagnosis of prostate cancer, entered the market with CE mark status, which means that it is now available for clinical routine use within EU. The product will allow pathologists to focus their time on assessing and examining prostate specimens with suspicious cancer areas, and minimize time spent on benign tissue. This is a milestone for the company and a part of our strategy to build a portfolio of decision support tools for cancer diagnosis. We continue our R&D activities, targeting those cancer types that cause the heaviest burden on the pathology labs around the world.
Contracts with several labs in the forefront of digitalization are already in place, and we have additional prospects in late-phase discussions. We will now focus on performing installations at key reference centers and broadening the use of INIFY in the clinical workflow. So far, reception of its value and performance has been very positive. Our ambition is to complete several installations before the end of the year, despite limitations caused by COVID-19.
Digital pathology is a fast-growing market and powerful software tools will be a vital key to addressing present and future challenges, such as aging populations and increasing incidence of cancer.
Medical Imaging
Sales in the second quarter were 13% lower than in Q2 2019. Customers in Asia, especially within the ultrasound segment, experienced a lower number of requests for systems due to coronavirus-related priorities among hospitals and clinics. This is the major cause of the lower total revenues in the second quarter.
Our X-ray sales continue the positive path, growing substantially by 78% compared to Q2 2019. Ultrasound sales decreased, mainly within 3D ultrasound, while 2D ultrasound – our largest business segment – showed a smaller decrease. New customer projects are making slower progress due to the present situation, but several new contracts with ultrasound customers in Asia has been signed during the quarter. Thanks to creativity and strong commitment among our team and customers, we are able to move projects forward remotely.
Rivent®, our latest product for 2D ultrasound, was launched in this quarter. It enables an extraordinarily sharp image quality, which has been in increasing demand among leading ultrasound manufacturers around the world. This confirms our capabilities and leadership in the image processing field.
The first six months of the year in total have been positive, with a sales growth of 11.3%. Here, our AI-based product for X-ray was the major contributor, with a total growth of 153%. We are experiencing pandemic effects, and business going forward continues to be somewhat unpredictable. However, we remain optimistic, as the world increasingly adapts to a new business climate where more and more progress is made through digital interactions. Congresses, seminars and customer meetings are now held remotely via digital platforms.
Organization
During the second quarter, the organization was strengthened with several key recruitments.
Magnus Aurell joined us in May as Vice President of Digital Pathology. Aurell is a senior business executive, bringing more than 25 years of experience from technology companies within the medical field – several of them specialized in AI-based technology. He is instrumental in the further development of the pathology business unit, and a key person on the management team.
Martin Ingvar was elected member of the board at the annual general meeting in May. Ingvar, professor of integrative medicine at Karolinska Institute and founding member of ICHOM, brings a unique mix of clinical experience and vision for how healthcare can be provided in the future's increasingly digitalized clinical setting.
COVID-19 update
Pandemic-related restrictions affected short-term business conditions. Significant travel restrictions have slowed down new projects, and ongoing business suffered somewhat due to other priorities among healthcare providers and clinics around the world. However, in order to continue moving forward globally despite current limitations on physical meetings, we are making increasing use of digital alternatives. Our organization and customer support remain fully operational.
Summary
CONTEXTVISION AB 556377-8900//SECOND QUARTER 2020 FINANCIAL RESULTS//PAGE 3 OF 13
In summary, it was a progressive quarter and first six months of the year for the company. We have delivered sales growth and multiple product launches, most notably our first product within digital pathology – INIFY Prostate Screening, now CE marked and available for use in clinical routine.
Being an established market leader within medical imaging, combined with our entry into the digital pathology field and our solid financials, makes us optimistic about the future. The need for efficient solutions within healthcare – which is what digital settings offer – is more obvious than ever.
CONTEXTVISION AB 556377-8900//SECOND QUARTER 2020 FINANCIAL RESULTS/PAGE 4 OF 13
SECOND QUARTER 2020
OPERATING SEGMENTS
- From January 2018 ContextVision reports its sales, costs and results in two separate operating segments; Business Unit Medical Imaging and Business Unit Digital Pathology. This reflects how the management review and measure the results.
- The Business Unit Medical Imaging comprise research, product development and OEM sales within medical imaging. The product portfolio consists of products developed for a variety of modalities, such as Ultrasound, X-ray, MRI, Mammography, CT and iRV.
- The Business Unit Digital Pathology presently includes research and product development of new products for the growing digital pathology market. The first product for the business unit was CE-marked and released for sales in June 2020.
NET SALES AND OPERATING PROFIT
NET SALES
- ContextVisions sales in the second quarter 2020 amounted to 20.1 MSEK (23.1 MSEK). This represents a decrease of 13% compared to the same quarter previous year.
- All sales in the quarter was generated from the Business Unit Medical Imaging. All sales are generated outside Sweden and from external sales.
- The currency exchange rates had an average effect on sales of 2.2% in the quarter. There were positive effects from changes in all currencies; EUR, USD and JPY.
OPERATING PROFIT AND MARGIN
- The operating result for ContextVision was 1.6 MSEK (5.4) in the second quarter and the operating margin was 8.0% (23.4%).
- EBITDA for the second quarter reached 3.7 MSEK.
- Capitalization is recorded as intangible fixed assets only when product development meets certain requirements.
- Capitalized costs of total 4.0 MSEK (7.1 MSEK) originating in the development of two different products have been recorded during the second quarter. One project within the Business Unit Medical Imaging, and one within the Business Unit Digital Pathology. Both development projects were finalized during the quarter.
- The increase in the external costs relates to a lower level of capitalization. The underlying costs are lower than in the same period previous year, mostly related to cancelled marketing activities and travel restrictions due to COVID-19.
- The increase in personnel costs also relates to the lower level of capitalization. The underlying cost is somewhat lower than the cost in the same quarter previous year.
CASH-FLOW AND FINANCING
- The cash flow in the second quarter was 12.2 MSEK (2.5 MSEK).
- Cash at period end amounted to 45.2 MSEK (39.7).
- Equity at period end amounted to 77.1 MSEK (65.4), giving an equity ratio of 71.3% (65.1%).
FINANCIAL INSTRUMENTS
- The Group's financial instruments consist of cash and bank deposits, accounts receivable (trade), accounts payable, other short-term liabilities relating to operations and derivatives (primarily forward exchange contracts). The fair value of financial instruments approximates the carrying amount as of June 30th, 2020.
- Derivatives refer to currency hedging contracts, which have been valued to market value on the balance sheet day and are included in the level 2 of the valuation hierarchy.
- Net derivative value at the balance sheet date amounts to 1 538 TSEK.
LEASING
- IFRS 16 replaces IAS 17 from January 1, 2019. According to the new standard, the lessee must report the obligation to pay leasing fees as a lease liability in the balance sheet. The right to use the underlying asset during the lease period is reported as an asset. Depreciation of the asset is reported in the income statement as well as interest on the lease liability.
- The Company has chosen to use the modified retrospective model, which allows comparative figures for periods prior to January 1, 2019 not to be recalculated. IFRS 16 has primarily affected ContextVision through rental agreements for offices.
- ContextVision has decided to apply the exemption rules for short-term leases and leases where the underlying asset has a low value. These leases are not included in the right-of-use asset or the liability. For further details, please refer to the annual report.
- For lease agreements related to offices, an interest rate of 3% has been used, and for other lease agreements an interest rate of 5% has been used.
- In the Parent Company, the exception in RFR 2 regarding lease agreements will apply. This means
CONTEXTVISION AB 556377-8900//SECOND QUARTER 2020 FINANCIAL RESULTS/PAGE 5 OF 13
that the Parent Company's principles for accounting of leases is unchanged.
| Opening balance, Mar 31, 2020 | Closing balance, June 30, 2020 | |
|---|---|---|
| Right-of-use asset | 8.6 MSEK | 7.8 MSEK |
| Lease liability | 7.8 MSEK | 7.0 MSEK |
EMPLOYEES AND MANAGEMENT
- At period end the company had 47 (44) employees of which 21 (20) are dedicated to research and development. 1 employee is located in the USA and 1 in China.
CONTEXTVISION GROUP
- The group consists of ContextVision AB (publ), company registration number 556377-8900 as parent company, and ContextVision Inc Corp registration number 36-4333625 State of Illinois, USA, as a wholly owned subsidiary.
- Operations in the group are conducted primarily in the parent company and consist of research and development, sales, marketing and administrative functions.
RISKS & UNCERTAINTIES
- ContextVision's major risk factors include business risks connected to the general global financial situation, to the level of healthcare investment on different markets, currency exchange risks, the company's ability to recruit and keep qualified employees and the effect of political decisions.
- The company's risk factors are described in more detail in the annual report 2019. The risks and uncertainties have not changed significantly since then.
BASIS OF PREPARATION
- The condensed consolidated financial statements for the 2:nd quarter ended June 30th, 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting and recommendation RFR 1 of the Swedish Financial Reporting Board (RFR), and with regards to the Parent Company, RFR 2. The condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as of December 31, 2019. Apart from the changes in accounting principles stated below, there have been no changes in the accounting principles or methods for calculation during the period.
DEFINITIONS
ContextVision presents certain financial measures in the financial statements that are not defined under IFRS. The Company believes that these measures provide useful supplementary information to investors and the Company's management as they allow for evaluation of the Company's performance. Because not all companies calculate the financial figures in the same way, these are not always comparable to measures used by other companies.
- Earnings per share after tax (Return on equity): Net result for the period as a percentage of the average equity, where average equity is calculated as the equity at beginning of period plus the equity at end of period divided by two.
- Operating margin: Operating income excluding non-recurring items as a percentage of net sales.
- Profit margin: Result after financial items as a percentage of net sales.
- Solidity (Equity ratio): Equity at period end as a percentage of total assets.
- EBITDA: Earnings before interest, taxes, depreciation and amortization
NEW AND CHANGED ACCOUNTING PRINCIPLES
- No new or changed accounting principles have had effect on the accounting for the period.
SUBSEQUENT EVENTS
- No significant events have occurred during the period between period-end and date of issuance of this report.
This quarterly report provides a fair and true overview of the company's and the Group's activities, position and results, and describes the risks and uncertainties of significance faced by ContextVision and the companies in the Group.
The Board of Directors and the Chief Executive Officer of ContextVision AB
Stockholm 2020-08-12
This report has not been reviewed by the company's auditors.
CONTEXTVISION AB 556377-8900//SECOND QUARTER 2020 FINANCIAL RESULTS//PAGE 6 OF 13
PRESENTATION AND REPORTING DATES
This quarterly report will be published on the company's website on the 13th of August 2020.
There will be a video presentation released on the 14th of August, at 09.00 CET.
Please follow the link: http://webtv.nu/contextvisionq22020
Please visit www.contextvision.com for further information, or use [email protected] to send a question directly to management.
REPORTING DATES
| Q4 and 12 months 2019 | February 20, 2020 |
|---|---|
| Annual report available on company's website | April 2, 2020 |
| Q1 result 2020 | April 23, 2020 |
| Annual General Meeting | May 7, 2020 |
| Q2 result 2020 | August 13, 2020 |
| Q3 result 2020 | October 22, 2020 |
| Q4 and 12 months 2020 | February 18, 2021 |
FOR MORE INFORMATION PLEASE CONTACT:
Fredrik Palm, CEO
Phone +46 (0)8 750 35 50
CONTEXTVISION FAST FACTS
- ContextVision is a medical technology software company that specializes in image analysis and artificial intelligence.
- ContextVision is the global market leader within image enhancement and is a software partner to leading medical imaging manufacturers all over the world.
- ContextVision are currently developing artificial intelligence-based decision support tools for digital Pathology to support the future of fast and reliable cancer diagnosis.
- The company is based in Sweden, with local representation in the U.S., Russia, Japan, China and South Korea.
- ContextVision is a spin-off from the Image Processing Laboratory at Linköping University, Sweden. The corporate identity was established in 1983 with the first OEM agreement in radiology in 1987.
- The company's share is traded on the Oslo Stock Exchange since 1997, under the ticker COV.
THE COMPANY OFFERS:
- 30 years of experience within software for medical imaging.
- Unprecedented image enhancement for ultrasound, Radiography, Mammography and MRI.
- Continuous reinvestment in R&D that ensures timely and rewarding upgrade paths.
- Strong customer relationships to ensure their success.
- Expert training in image processing for our customers.
- Compatibility across different image formats and major computer platforms.
- ContextVision’s technology enables the company’s customers to provide superior digital imaging solutions for hospitals and clinicians. Such solutions promise more rapid and accurate diagnoses, reduced operator eye fatigue, and ultimately, a greater return-on-investment for medical imaging users.
CONTEXTVISION AB 556377-8900//SECOND QUARTER 2020 FINANCIAL RESULTS/PAGE 7 OF 13
CONSOLIDATED INCOME STATEMENT (SEK 1000)
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| Net sales | 20 084 | 23 138 | 49 234 | 44 201 | 95 312 |
| Total revenues | 20 084 | 23 138 | 49 234 | 44 201 | 95 312 |
| Goods for resale | -398 | -552 | -1 228 | -1 152 | -2 289 |
| Other external costs | -4 357 | -4 033 | -7 343 | -8 597 | -21 435 |
| Personnel costs | -11 599 | -11 299 | -23 111 | -21 070 | -43 347 |
| Depreciation | -2 133 | -1 843 | -4 121 | -3 667 | -8 170 |
| Write-down of intangible assets | 0 | 0 | 0 | 0 | -10 000 |
| Operating results | 1 596 | 5 411 | 13 431 | 9 715 | 10 072 |
| Interest income | 0 | 0 | 0 | 0 | 25 |
| Interest cost | -64 | -87 | -130 | -181 | -333 |
| Results after financial items | 1 532 | 5 324 | 13 301 | 9 534 | 9 763 |
| Tax | -303 | -1 227 | -2 992 | -2 144 | -2 365 |
| Net results | 1 229 | 4 097 | 10 309 | 7 390 | 7 398 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK 1000)
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| Net result for the period | 1 229 | 4 097 | 10 309 | 7 390 | 7 398 |
| Other comprehensive income | |||||
| Other comprehensive income that may be reclassified to profit or loss in subsequent periods (net of tax) | |||||
| Effect of currency hedging | 1 868 | -42 | 704 | -580 | 138 |
| Translation difference | -77 | 2 | -3 | 33 | 38 |
| Total other comprehensive income | 1 791 | -44 | 701 | -547 | 176 |
| Total comprehensive income for the period | 3 020 | 4 053 | 11 010 | 6 843 | 7 574 |
FINANCIAL HIGHLIGHTS
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| Earnings per share (SEK) before/after dilution | 0.16 | 0.53 | 1.33 | 0.96 | 0.96 |
| Average number of shares | 7 736 750 | 7 736 750 | 7 736 750 | 7 736 750 | 7 736 750 |
| Operating margin (per cent) | 7.95 | 23.4 | 27.28 | 22.0 | 10.6 |
| Solidity (per cent) | 71.28 | 65.1 | 71.28 | 65.1 | 70.3 |
CONTEXTVISION AB 556377-8900//SECOND QUARTER 2020 FINANCIAL RESULTS//PAGE 8 OF 13
SALES BY REGION (MSEK)
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| Asia | 10.9 | 13.2 | 29.9 | 25.7 | 55.9 |
| Europe | 6.2 | 7.1 | 12.6 | 13.7 | 27.0 |
| USA | 3.0 | 2.8 | 6.8 | 4.8 | 12.4 |
| Total | 20.1 | 23.1 | 49.2 | 44.2 | 95.3 |
SALES BY PRODUCT (MSEK)
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| XR | 5.7 | 3.2 | 14.9 | 5.8 | 16.6 |
| US 2D | 12.2 | 12.9 | 27.7 | 26.0 | 56.7 |
| US 3D | 0.6 | 3.6 | 3.2 | 6.0 | 11.0 |
| MR | 1.3 | 2.6 | 3.0 | 5.1 | 8.7 |
| Others (iRV, CT, Mammo) | 0.3 | 0.8 | 0.4 | 1.2 | 2.2 |
| Total | 20.1 | 23.1 | 49.2 | 44.2 | 95.3 |
BUSINESS UNITS / OPERATING SEGMENTS (MSEK)
| | BUSINESS UNIT
MEDICAL IMAGING | | BUSINESS UNIT
DIGITAL PATHOLOGY | | GROUP TOTAL | |
| --- | --- | --- | --- | --- | --- | --- |
| | Q2 2020 | Q2 2019 | Q2 2020 | Q2 2019 | Q2 2020 | Q2 2019 |
| Net sales | 20.1 | 23.1 | - | 0 | 20.1 | 23.1 |
| Operating expenses | -12.5 | -15.3 | -6.0 | -2.4 | -18.5 | -17.7 |
| Operating results | 7.6 | 7.8 | -6.0 | -2.4 | 1.6 | 5.4 |
| | BUSINESS UNIT
MEDICAL IMAGING | | BUSINESS UNIT
DIGITAL PATHOLOGY | | GROUP TOTAL | |
| --- | --- | --- | --- | --- | --- | --- |
| | SIX MONTHS 2020 | SIX MONTHS 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 |
| Net sales | 49.2 | 44.2 | - | 0 | 49.2 | 44.2 |
| Operating expenses | -25.7 | -29.2 | -10.1 | -5.3 | -35.8 | -34.5 |
| Operating results | 23.5 | 15.0 | -10.1 | -5.3 | 13.4 | 9.7 |
CONTEXTVISION AB 556377-8900//SECOND QUARTER 2020 FINANCIAL RESULTS//PAGE 9 OF 13
CONSOLIDATED BALANCE SHEET IN SUMMARY (SEK 1000)
| JUNE 30^{th}, 2020 | JUNE 30^{th}, 2019 | DECEMBER 31^{st}, 2019 | ||
|---|---|---|---|---|
| Intangible fixed assets | 27 189 | 24 329 | 20 822 | |
| Tangible assets | 2 253 | 3 134 | 2 677 | |
| Right-of-use assets | 7 825 | 11 363 | 9 461 | |
| Other financial assets | 394 | 498 | 522 | |
| Inventories | 1 177 | 960 | 884 | |
| Current receivables | 24 148 | 20 478 | 23 399 | |
| Cash and bank | 45 245 | 39 704 | 36 329 | |
| Total assets | 108 231 | 100 466 | 94 094 | |
| Equity | 77 146 | 65 406 | 66 136 | |
| Deferred taxes | 1 793 | 924 | 1 560 | |
| Non-current lease liabilities | 3 031 | 6 572 | 4 734 | |
| Current liabilities | 22 264 | 23 650 | 17 758 | |
| Current lease liabilities | 3 997 | 3 914 | 3 906 | |
| Total equity and liabilities | 108 231 | 100 466 | 94 094 |
CHANGE IN EQUITY IN SUMMARY (SEK 1000)
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| Opening balance | 74 126 | 61 353 | 66 136 | 58 562 | 58 562 |
| Total comprehensive income for the period | 3 020 | 4 053 | 11 010 | 6 843 | 7 574 |
| Closing balance | 77 146 | 65 406 | 77 146 | 65 406 | 66 136 |
CONTEXTVISION AB 556377-8900/SECOND QUARTER 2020 FINANCIAL RESULTS/PAGE 10 OF 13
CONSOLIDATED STATEMENT OF CASH FLOWS (SEK 1000)
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| Result after financial items | 1 532 | 5 324 | 13 301 | 9 536 | 9 763 |
| Depreciation and write-down of assets | 2 133 | 1 843 | 4 120 | 3 666 | 18 170 |
| Unrealized gain/loss on current investments | 1 868 | -42 | 704 | -580 | 138 |
| Income tax paid | -68 | -433 | -2 175 | -939 | -6 |
| Cash flow from operating activities before change in working capital | 5 465 | 6 692 | 15 950 | 11 683 | 28 065 |
| Change in working capital | |||||
| Increase (-)/decrease (+) inventories | -129 | -306 | -293 | -246 | -170 |
| Increase (-)/decrease (+) current receivables | 12 339 | 3 812 | 224 | 2 091 | -1 526 |
| Increase (+)/decrease (-) liabilities | -898 | 465 | 2 946 | 4 240 | -1 293 |
| Cash flow from operating activities | 16 777 | 10 663 | 18 827 | 17 768 | 25 076 |
| Investing activities | |||||
| Investments in intangible assets | -3 980 | -7 131 | -8 092 | -13 946 | -22 583 |
| Investments in tangible assets | - | -144 | -25 | -247 | -247 |
| Investments in financial assets | -266 | - | -310 | - | - |
| Other financial assets | 343 | - | 128 | 1 | -199 |
| Cash flow from investing activities | -3 902 | -7 275 | -8 299 | -14 192 | -23 029 |
| Financing activities | |||||
| Payments of lease liabilities | -724 | -912 | -1 612 | -1 817 | -3 663 |
| Cash flow from financing activities | -724 | -912 | -1 612 | -1 817 | -3 663 |
| Cash flow for the period | 12 151 | 2 476 | 8 916 | 1 759 | -1 616 |
| Change of liquid assets | |||||
| Liquid assets at beginning of period | 33 094 | 37 228 | 36 329 | 37 945 | 37 945 |
| Liquid assets at period end | 45 245 | 39 704 | 45 245 | 39 703 | 36 329 |
CONTEXTVISION AB 556377-8900//SECOND QUARTER 2020 FINANCIAL RESULTS//PAGE 11 OF 13
PARENT COMPANY INCOME STATEMENT (SEK 1000)
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| Net sales | 20 084 | 23 138 | 49 234 | 44 201 | 95 312 |
| Total revenues | 20 084 | 23 138 | 49 234 | 44 201 | 95 312 |
| Goods for resale | -398 | -552 | -1 228 | -1 152 | -2 289 |
| Other external costs | -6 083 | -5 767 | -10 825 | -12 030 | -28 117 |
| Personnel costs | -10 964 | -10 608 | -21 763 | -19 723 | -40 827 |
| Depreciation | -1 138 | -892 | -2 174 | -1 764 | -4 365 |
| Write-down of intangible assets | - | - | - | - | -10 000 |
| Operating results | 1 501 | 5 319 | 13 244 | 9 532 | 9 713 |
| Interest income | - | - | - | - | 25 |
| Interest cost | - | -1 | -1 | -1 | -2 |
| Results after financial items | 1 501 | 5 318 | 13 243 | 9 531 | 9 736 |
| Provision for tax allocation reserve | - | - | - | - | -2 525 |
| Tax | -273 | -1 211 | -2 950 | -2 143 | -1 619 |
| Net results | 1 228 | 3 280 | 10 293 | 7 388 | 5 592 |
PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME (SEK 1000)
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| Effect of currency hedging | 1 868 | -42 | 704 | -580 | 138 |
| Total other comprehensive income | 1 868 | -42 | 704 | -580 | 138 |
| Net result for the period | 1 228 | 4 108 | 10 293 | 7 388 | 5 592 |
| Total comprehensive income for the period | 3 096 | 4 066 | 10 997 | 6 808 | 5 730 |
FINANCIAL HIGHLIGHTS
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| Average number of shares | 7 736 750 | 7 736 750 | 7 736 750 | 7 736 750 | 7 736 750 |
| Operating margin (per cent) | 7.5 | 23.0 | 26.9 | 21.6 | 10.2 |
| Solidity (per cent) | 70.5 | 68.4 | 70.5 | 68.4 | 70.9 |
CONTEXTVISION AB 556377-8900/SECOND QUARTER 2020 FINANCIAL RESULTS/PAGE 12 OF 13
SALES BY REGION (MSEK)
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| Asia | 10.9 | 13.2 | 29.9 | 25.7 | 55.9 |
| Europe | 6.2 | 7.1 | 12.6 | 13.7 | 27.0 |
| USA | 3.0 | 2.8 | 6.8 | 4.8 | 12.4 |
| Total | 20.1 | 23.1 | 49.2 | 44.2 | 95.3 |
SALES BY PRODUCT (MSEK)
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| XR | 5.7 | 3.2 | 14.9 | 5.8 | 16.6 |
| US 2D | 12.2 | 12.9 | 27.7 | 26.0 | 56.7 |
| US 3D | 0.6 | 3.6 | 3.2 | 6.0 | 11.0 |
| MR | 1.3 | 2.6 | 3.0 | 5.1 | 8.7 |
| Others (iRV, CT, Mammo) | 0.3 | 0.8 | 0.4 | 1.2 | 2.2 |
| Total | 20.1 | 23.1 | 49.2 | 44.2 | 95.3 |
PARENT COMPANY BALANCE SHEET IN SUMMARY (SEK 1000)
| JUNE 30TH 2020 | JUNE 30TH 2019 | DEC 31ST 2019 | |||
|---|---|---|---|---|---|
| Intangible fixed assets | 27 189 | 24 329 | 20 822 | ||
| Tangible assets | 2 253 | 3 134 | 2 677 | ||
| Other financial assets | 611 | 715 | 739 | ||
| Inventories | 1 177 | 960 | 884 | ||
| Current receivables | 25 111 | 21 441 | 24 361 | ||
| Cash and bank | 44 672 | 38 995 | 35 450 | ||
| Total assets | 101 013 | 89 574 | 84 933 | ||
| Equity | 71 232 | 61 313 | 60 235 | ||
| Untaxed reserves | 7 054 | 4 200 | 6 820 | ||
| Current liabilities | 22 727 | 24 061 | 17 878 | ||
| Total equity and liabilities | 101 013 | 89 574 | 84 933 |
CHANGE IN EQUITY IN SUMMARY (SEK 1000)
| Q2 2020 | Q2 2019 | SIX MONTHS 2020 | SIX MONTHS 2019 | FULL YEAR 2019 | |
|---|---|---|---|---|---|
| Opening balance | 68 136 | 57 247 | 60 235 | 54 505 | 54 505 |
| Total comprehensive income for the period | 3 096 | 4 066 | 10 997 | 6 808 | 5 730 |
| Closing balance | 71 232 | 61 313 | 71 232 | 61 313 | 60 235 |
CONTEXTVISION AB 556377-8900//SECOND QUARTER 2020 FINANCIAL RESULTS/PAGE 13 OF 13
GLOSSARY
ALTUMIRA
ContextVision's next generation image enhancement for X-ray systems. Altumira is designed with AI (deep learning) technology in combination with ContextVision's leading GOP technology.
ARTIFICIAL INTELLIGENCE (AI)
Artificial Intelligence is the intelligence exhibited by machines or software.
DEEP LEARNING
Deep learning is the latest very powerful technology within machine learning; machine learning with deep neural networks.
DIGITAL PATHOLOGY
Digital pathology refers to the digital images of histopathology samples. The digitalization is achieved by scanning the prepared samples.
GOP® (GENERAL OPERATOR PROCESSOR)
ContextVision's methodology and technology base for image analysis and image enhancement, detecting structures in an image and relating them to their wider context in order to increase visualization accuracy.
GOPICE® (IMAGE CUBICLE ENHANCEMENT)
ContextVision's real-time 3D volumetric image enhancement product, for OEM embedded software.
GOPVIEW® / PLUSVIEW®
The family names for ContextVision's 2D product lines of OEM-embedded software.
HANDHELD ULTRASOUND
A small ultrasound unit that can be held in the hand when performing the examination, e.g. smartphones and tablet-based systems.
IMAGE ANALYSIS
Processing a digital image in order to describe/classify its contents or to extract quantitative measurements.
IMAGE PROCESSING
A generic term used to describe the computation of digital images, typically to enhance or analyze them.
IMAGE ENHANCEMENT
To improve the visual quality of a digital image by increasing the visibility of relevant structures, as in edge/contrast enhancement and the suppression of noise or artifacts.
INIFY
The brand name of ContextVision's digital pathology products, with the first product INIFY Prostate Screening recently CE-marked.
INIFY® PROSTATE SCREENING
ContextVision's AI-based and CE-marked decision support tool that suggests and outlines suspected cancer areas in digital H&E wholesale images of prostate biopsy samples.
MACHINE LEARNING
Machine learning is the study of computer algorithms that improve automatically through experience.
MAMMOGRAPHY
An X-ray method used to examine the human breast.
MODALITY
A device that generates internal images of the body, such as X-ray, ultrasound, magnetic resonance imaging, and computed tomography.
MRI (MAGNETIC RESONANCE IMAGING)
A non-invasive procedure, generated by variations in strong magnetic fields, that produces a two-dimensional view of an internal organ or structure, especially the brain and spinal cord.
OEM
The acronym for Original Equipment Manufacturer.
REALICE™
REALICE is a volume enhancement and rendering product package for 3D and 4D fetal volume visualization.
RIVENT™
ContextVision's image enhancement product for 2D ultrasound with extended processing possibilities.
US (ULTRASOUND)
A procedure in which high-energy sound waves are bounced off internal tissues or organs to create echoes. The echo patterns are displayed on the screen of an ultrasound machine, forming a picture of body tissues called a sonogram.
VOLARVIEW™
ContextVision's image enhancement product for handheld ultrasound units.
XR (X-RAY)
A diagnostic device in which radiation is used to create images for examination of soft and hard tissue, such as muscle and bone.
ContextVision
ContextVision is a medical technology software company specialized in image analysis and artificial intelligence. As the global market leader within image enhancement, we are a trusted partner to leading manufacturers of ultrasound, X-ray and MRI equipment around the world.
Our expertise is to develop powerful software products, based on proprietary technology and artificial intelligence for image-based applications. Our cutting-edge technology helps clinicians accurately interpret medical images, a crucial foundation for better diagnosis and treatment.
ContextVision is now entering the fast-growing digital pathology market. We are re-investing significantly in our product portfolio of decision support tools and we are dedicated to becoming a leading resource for pathologists to radically develop cancer diagnosis and improve patient care.
The company, established in 1983, is based in Sweden with local representation in the U.S., Japan, China and Korea. ContextVision is listed on the Oslo Stock Exchange under the ticker COV.
FOR MORE INFORMATION, PLEASE VISIT WWW.CONTEXTVISION.COM