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ContextVision AB Interim / Quarterly Report 2022
9979_10-q_2022-10-20_4e6ed095-47a9-4caf-a63a-f66ca88b01e9.pdf
Interim / Quarterly Report
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ContextVision
CONTEXTVISION AB
THIRD QUARTER 2022
Q3 HIGHLIGHTS
- 'Focus on the Core' continuous to show growth in Sales and Margins
- Good traction within growing share of wallet in larger OEM
- Strengthening the organization with new Key hires
Q3 FINANCIAL DATA
- Total revenue continued operations* of 26.9 MSEK (26.0)
- Operating result continued operations of 11.2 MSEK (15.0)
- Earnings per share continued operations of 0.11 SEK (0.15)
- EBITDA continued operations of 13.3 MSEK (16.3)
FIRST NINE MONTHS FINANCIAL DATA
- Total revenue continued operations* of 86.6 MSEK (70.7)
- Operating result continued operations of 32 MSEK (33.6)
- Earnings per share continued operations of 0.34 SEK (0.35)
-
EBITDA continued operations of 38.1 MSEK (38.0)
-
For further information, see discontinued Operations on page 3
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 2 OF 15
FOCUS ON THE CORE.
Gerald Pötzsch, THE COMPANY'S CEO COMMENTED:
Rewarding Start
My first two months at ContextVision has been a fantastic journey. Not only being able to meet with almost all employees but also with major customers and many investors has been very rewarding. The culture I experienced throughout all these encounters has been very welcoming, open, insightful, and inclusive. To me, ContextVision has proven to be a great place to work and a fantastic business to be engaged in.
During these first week's others have probably seen me shaking almost every tree in the company that I was able to identify. And it is amazing to see already now, how ideas, new insights and concepts are being picked-up and translated into business opportunities for growing the core of our current business. Given our success it is going to be very exciting ride into adjacent areas, into building out a broader eco-system of partners and into entering a new era of ContextVision.
A highlight this quarter was certainly to see customer travel and engagements picking up strongly. For me it was an honour in the first place to meet with selected strategic accounts but also for many in the team it was a first time visit after COVID restrictions had banned travel and in-person meetings to a large extend over the past years.
Continuous growth in Revenue and Margins
Q3 was yet another strong quarter for ContextVision with total revenues of 26.9 MSEK. Sales from operations in the third quarter ended at 25.6 MSEK in line with previous year's Q3 resulting in an overall continued growth of +21% for the first nine months of 2022. Other income stated for Q3 mainly results from a temporary coworking agreement with Inify Laboratories AB. EBITDA for Q3 ended at 13.3 MSEK and with an EBITDA margin of 49.4%, yet another increase compared to previous quarter. Cash position has increased to 40.6 MSEK at the end of the quarter.
The growth in Q3 mainly resulted from a strong Asian market and the continued success of our US2D products, mainly within larger OEMs. Currency effects from USD and EUR are very beneficial compared to previous Q3. However, exceptional orders in 2021 Q3 in the US market challenge a further comparison to 2022 Q3.
Overall, we have seen the global positive business trends continuing. And we have not yet noticed major unexpected impacts of the current averse economic dynamics and continue to manage currencies, license pricing as well as supplier and salary costs within the projected budgets.
Especially, we are very excited to see in-person customer visits in the US, Europa and Asia picking up again and we are receiving very good feedback for our new product features that we will also be showcasing at RSNA later in November.
In line with our business growth, we are making further important investments in the organization with several new key hires. We are strengthening our Sales- and Marketing organization with a new hire as product manager for X-ray and MR. And we are expanding our application team and have recently added a programmer to our development team.
Summary
Our growth strategy to 'Focus on the core' is bearing its fruits. A continued top line growth, further increasing margins, strong positive cash flow and a stabilizing OPEX level after the Inify Laboratories AB spin-off will allow us to significantly invest into further growth.
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 3 OF 15
THIRD QUARTER 2022
NET SALES
- ContextVision's net sales from continuing operations in the third quarter 2022 amounted to 25.6 MSEK (26.0 MSEK). This represents a decrease of 1.5% compared to the same quarter previous year.
- All license sales are generated outside Sweden and from external sales.
- The currency exchange rates had an average effect on sales of 8.3% in the quarter. There were positive effects from all invoicing currencies, EUR, USD and JPY.
OTHER INCOME
- ContextVision’s Other Income is from co-working agreement with Inify Laboratories AB.
OPERATING PROFIT AND MARGIN
- The operating result for ContextVision continued operation is 11.2 MSEK (15.0) in the third quarter. The operating margin was 43.8% (57.6%) in the quarter.
- EBITDA from continued operations for the third quarter reached 13.3 MSEK (16.3).
- Capitalization is recorded as intangible fixed assets only when product development meets certain requirements.
- Capitalized costs relating to continuing operations of 1.4 MSEK were recorded during the third quarter 2022 while 0.5 MSEK costs were recorded as capitalized in the same period in 2021.
CASH-FLOW AND FINANCING
- The cash flow in the third quarter was 5,5 MSEK (-2.7 MSEK).
- Cash at period end amounted to 40.6 MSEK (48.1).
- Equity at period end amounted to 59.1 MSEK (74.2), giving an equity ratio of 66% (75.7%).
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 September 30th, 2022.
- 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.
DISCONTINUED OPERATIONS
- On November 15th, 2021, the Company announced that the Board of directors had made a decision to change strategic direction for the Business Unit Digital Pathology and thus discontinue the Business Unit in its present form. In connection with the decision the wholly owned subsidiary Inify Laboratories AB was formed with the intention to focus its prospective operations on the establishment of an AI based pathology lab service.
- At an Extraordinary General Meeting that was held on December 10th, 2021, it was decided that the subsidiary Inify Laboratories AB should become an independent company through a distribution of its shares to the existing shareholders of ContextVision. Record date for the dividend was decided to be February 9th, 2022.
- Before the distribution was carried out, tangible assets of 0.7 MSEK, intangible assets of 10.1 MSEK, intellectual property rights and cash of 20.5 MSEK corresponding to an aggregate value of SEK 31,253,000 was transferred from ContextVision AB to Inify Laboratories AB.
- The continued operations comprise of research, product development, services and sales within medical imaging. The product portfolio consists of products developed for a variety of modalities, such as ultrasound, X-ray, MRI.
LEASING
- IFRS 16 replaced IAS 17 from January 1, 2019. According to the 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.
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 4 OF 15
- In the Parent Company, the exception in RFR 2 regarding lease agreements will apply. This means that the Parent Company's principles for accounting of leases is unchanged.
| Opening balance, July 1, 2022 | Closing balance, September 30, 2022 | |
|---|---|---|
| Right-of-use asset | 7.5 MSEK | 6.4 MSEK |
| Lease liability | 6.7 MSEK | 5.6 MSE |
EMPLOYEES AND MANAGEMENT
- At period end the company had 33 (46) employees of which 9 (19) are dedicated to research and development. 1 employee is located in the USA and 1 in China.
DIVIDEND OF SHARES
- At an extraordinary general meeting, held on December 10th, 2021, it was decided on a dividend of all shares in the Company's wholly owned subsidiary Inify Laboratories AB, containing the Business Unit Digital Pathology. Record date for the distribution of the shares was decided by the board of directors and was set out to February 9th 2022. All shares in INIFY were distributed, whereby one (1) share in ContextVision entitled to one (1) share in Inify Laboratories AB.
CONTEXTVISION GROUP
- The group consists of ContextVision AB (publ), company registration number 556377-8900 as parent company, ContextVision Inc Corp registration number 36-4333625 State of Illinois, USA, as a wholly owned subsidiary, and Inify Laboratories, company registration number 559345-4431 as a wholly owned subsidiary until February 10th.
- On February 10th 2022 the shares of the subsidiary Inify Laboratories were distributed to the shareholders and the company is no longer part of the ContextVision group from that date.
- 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 business risk connected to the Covid-19 pandemic is continuously evaluated but is not considered to be a major risk factor for the moment. However, we can still not entirely ignore future changes in circumstances related to Covid-19.
- Russia's invasion of Ukraine has affected the company. We have stopped all new marketing of the Russian market. However, we will continue to deliver licenses to our two existing customers with reference to the fact that it does not violate any sanction rules and that it supports healthcare. We monitor the development closely and should there be any changes in sanction rules we will reevaluate our decision. We have so far had limited contact with our customers in Ukraine and is ready to deliver licenses when it is possible.
- Uncertainty related to higher energy prices, supply chain issues and inflation is being closely monitored and mitigated to best ability.
- The company's risk factors are described in more detail in the 2021 annual report. The risks and uncertainties have not changed significantly since then.
BASIS OF PREPARATION
- The condensed consolidated financial statements for the 3rd quarter ended September 30, 2022 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, 2021.
NEW AND CHANGED ACCOUNTING PRINCIPLES
- No new or changed accounting principles have had effect on the accounting for 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.
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 5 OF 15
| Earnings per share after tax (Return on equity) from continued operations | Net result for the period as a percentage of the average number of shares | Earnings per share shows the company's results in relation to shares, and provides investors with additional information regarding the company's profitability. |
|---|---|---|
| Operating margin from continued operations | Operating income excluding non-recurring items as a percentage of net sales | The operating margin is helpful for investors when assessing the company's potential for dividends. |
| Profit margin from continued operations | Result after financial items as a percentage of net sales | The profit margin shows the company's results per SEK revenue and is of interest for both the company and for investors. |
| Solidity (Equity ratio) from continued operations | Equity at period end as a percentage of total assets | The equity ratio shows the company's long-term ability to pay its debts and is a complement to other key figures. It helps investors assess the possibility of dividends. |
| EBITDA from continued operations | Earnings before interest, taxes, depreciation and amortization | EBITDA shows the company's underlying development, which is valuable as an indication of the company's underlying cash-generating capacity. |
| Earnings per share from continued operations | Q3 2022 | Q3 2021 |
| --- | --- | --- |
| Net results (SEK thousand) | 8,793 | 11,884 |
| Average number of shares | 77,367,500 | 77,367,500 |
| Earnings per share | 0.11 | 0.15 |
| Operating margin from Continued operations | Q3 2022 | Q3 2021 |
| --- | --- | --- |
| Operating income (SEK thousand) | 11,212 | 14,987 |
| Non-recurring items (SEK thousand) | - | - |
| Net sales (SEK thousand) | 25,593 | 26,038 |
| Operating margin | 43.8% | 57.6% |
| Profit margin from continued operations | Q3 2022 | Q3 2021 |
| --- | --- | --- |
| Result after financial items (SEK thousand) | 11,164 | 14,966 |
| Net sales (SEK thousand) | 25,593 | 26,038 |
| Profit margin | 43.6% | 57.5% |
| Equity ratio from continued operations | Q3 2022 | Q3 2021 |
| --- | --- | --- |
| Equity at period end (SEK thousand) | 59,091 | 74,161 |
| Total assets (SEK thousand) | 89,477 | 97,961 |
| Equity ratio | 66.0% | 75.7% |
| EBITDA (SEK thousand) from continued operations | Q3 2022 | Q3 2021 |
| --- | --- | --- |
| Net results | 8,793 | 11,884 |
| Interests | 48 | 21 |
| Taxes | 2,371 | 3,083 |
| Depreciation and write-down | 2,064 | 1,361 |
| Amortization | 0 | 0 |
| EBITDA (SEK thousand) | 13,276 | 16,349 |
RELATED PARTY TRANSACTIONS
- During the year ContextVision has supplied both consultancy and coworking services to Inify Laboratories AB at the total amount of MSEK 2.8.
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 2022-10-19
This report has not been reviewed by the company's auditors.
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 6 OF 15
PRESENTATION AND REPORTING DATES
This quarterly report will be published on the company's website on the 20th of October 2022.
There will be a virtual recording released on the 21st of October, at 10:00 CET.
Please follow the link:
www.contextvision.com/investors/webcast/
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 2021 | February 17, 2022 |
|---|---|
| Annual report available on company's website | March 31, 2022 |
| Q1 result 2022 | April 21, 2022 |
| Annual General Meeting | May 4, 2022 |
| Q2 result 2022 | August 11, 2022 |
| Q3 result 2022 | October 20, 2022 |
| Q4 and 12 months 2022 | February 16, 2023 |
FOR MORE INFORMATION PLEASE CONTACT:
Gerald Pötzsch
Phone +46 (0)8 750 35 50
CONTEXTVISION FAST FACTS
- ContextVision is a medical technology software company that specializes in image analysis, image processing 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.
- The company is based in Sweden, with local representation in the U.S., 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 CONTX.
THE COMPANY OFFERS:
- More than 35 years of experience in developing software for image-based applications within the medical field.
- Unprecedented image enhancement products for ultrasound, Radiography and MRI.
- Continuous reinvestment in R&D that ensures timely and rewarding upgrade paths.
- Strong customer relationships and support to ensure partnership success.
- ContextVision’s medical imaging 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//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 7 OF 15
CONSOLIDATED INCOME STATEMENT (SEK 1000)
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Net sales | 25,593 | 26,038 | 85,261 | 70,669 | 98,099 |
| Other income | 1,316 | - | 1,316 | - | - |
| Total revenues | 26,909 | 26,038 | 86,577 | 70,669 | 98,099 |
| Goods for resale | -581 | -417 | -1,921 | -1,410 | -1,967 |
| Other external costs | -4,690 | -2,314 | -14,530 | -6,306 | -9,595 |
| Personnel costs | -8,362 | -6,959 | -32,065 | -24,957 | -36,236 |
| Depreciation | -2,064 | -1,361 | -6,070 | -4,427 | -5,818 |
| Write-down of intangible assets | - | - | - | - | - |
| Operating results | 11,212 | 14,987 | 31,991 | 33,569 | 44,483 |
| Interest income | - | - | - | - | - |
| Interest cost | -48 | -21 | -164 | -60 | -98 |
| Results after financial items | 11,164 | 14,966 | 31,827 | 33,509 | 44,385 |
| Tax | -2,371 | -3,083 | -5,888 | -6,751 | -9,501 |
| Net results from continued operations | 8,793 | 11,884 | 25,939 | 26,757 | 34,884 |
| Discontinued operations | |||||
| Net results (after tax) from discontinued operations | - | -9,589 | -4,527 | -29,918 | -42,537 |
| Net results from continued operations and discontinued operations | 8,793 | 2,295 | 21,412 | -3,160 | -7,653 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK 1000)
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Net result for the period continued operations and discontinued operations | 8,793 | 2,295 | 21,412 | -3,160 | -7,653 |
| Other comprehensive income | |||||
| Other comprehensive income that may be reclassified to profit or loss in subsequent periods (net of tax) | |||||
| Effect of currency hedging | 225 | -618 | -689 | -2,524 | -2,671 |
| Translation difference | 121 | 28 | 270 | 65 | 99 |
| Result from subsidiary Inify Laboratories | - | - | 295 | - | |
| Total other comprehensive income | 347 | -590 | -124 | -2,460 | -2,572 |
| Total comprehensive income for the period continuing operations | 9,140 | 1,705 | 21,288 | -5,620 | -10,225 |
FINANCIAL HIGHLIGHTS
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Earnings per share (SEK) from continued operations before/after dilution | 0.11 | 0.15 | 0.34 | 0.35 | 0.45 |
| Average number of shares | 77,367,500 | 77,367,500 | 77,367,500 | 77,367,500 | 77 367 500 |
| Operating margin (per cent) continued operations | 43.8 | 57.6 | 37.5 | 47.5 | 45.3 |
| Solidity (per cent) continued operations | 66.0 | 75.7 | 66.0 | 75.7 | 34.2 |
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 8 OF 15
NET SALES BY REGION (MSEK) CONTINUED OPERATIONS
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Asia | 18.3 | 13.1 | 59.5 | 42.3 | 61.5 |
| Europe | 3.1 | 4.7 | 14.1 | 13.9 | 19.0 |
| America | 4.2 | 8.2 | 11.7 | 14.5 | 17.6 |
| Net sales | 25.6 | 26.0 | 85.3 | 70.7 | 98.1 |
NET SALES BY PRODUCT AND SERVICE (MSEK) CONTINUED OPERATIONS
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| XR | 4.5 | 4.3 | 15.2 | 14.2 | 19.2 |
| US 2D | 19.4 | 17.1 | 54.8 | 44.2 | 61.8 |
| US 3D | 0.6 | 2.1 | 6.6 | 6.5 | 9.1 |
| MR | 1.2 | 1.4 | 4.7 | 3.6 | 5.4 |
| Others (IRV, CT, Mammo) | 0.3 | 0.7 | 1.9 | 1.2 | 1.3 |
| Services | -0.4 | 0.4 | 2.1 | 1.0 | 1.3 |
| Net sales | 25.6 | 26.0 | 85.3 | 70.7 | 98.1 |
Q3 as well as historical net sales has been reclassified from Product to Services.
REVENUE BY COUNTRY (MSEK) CONTINUED OPERATIONS
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Korea | 6.5 | 6.7 | 24.0 | 19.4 | 27.6 |
| China | 8.2 | 3.4 | 22.2 | 12.6 | 17.8 |
| Japan | 3.5 | 3.6 | 11.5 | 11.7 | 15.9 |
| USA | 4.2 | 7.3 | 11.5 | 12.3 | 16.0 |
| Sweden | -0.6 | - | 1.2 | - | - |
| Other countries | 3.8 | 5.0 | 14.9 | 14.7 | 20.8 |
| Net sales | 25.6 | 26.0 | 85.3 | 70.7 | 98.1 |
| Other income | |||||
| Sweden | 1.3 | - | 1.3 | - | - |
| Total revenue | 26.9 | 26.0 | 86.6 | 70.7 | 98.1 |
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 9 OF 15
CONSOLIDATED BALANCE SHEET IN SUMMARY (SEK 1000)
| SEP 30^{th} 2022 | SEP 30^{th} 2021 | DEC 31^{st} 2021 | |||
|---|---|---|---|---|---|
| Intangible fixed assets | 9,713 | 19,467 | 8,622 | ||
| Tangible assets | 2,792 | 2,167 | 3,736 | ||
| Right-of-use assets | 6,360 | 3,199 | 10,008 | ||
| Other financial assets | 761 | 603 | 704 | ||
| Inventories | 1,421 | 1,300 | 1,027 | ||
| Current receivables | 27,825 | 23,090 | 28,576 | ||
| Cash and bank | 40,605 | 48,135 | 26,205 | ||
| Assets for dividend | - | - | 31,753 | ||
| Total assets | 89,477 | 97,961 | 110,632 | ||
| Equity | 59,091 | 74,161 | 37,803 | ||
| Deferred taxes | 146 | 2,109 | 146 | ||
| Non-current lease liabilities | 3,066 | 170 | 4,854 | ||
| Current liabilities | 24,632 | 19,293 | 31,844 | ||
| Current lease liabilities | 2,542 | 2,228 | 4,232 | ||
| Inf. Laboratories AB shares for dividend | - | - | 31,753 | ||
| Total equity and liabilities | 89,477 | 97,961 | 110,632 |
CHANGE IN EQUITY IN SUMMARY (SEK 1000)
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Opening balance | 49,951 | 72,456 | 37,803 | 79,782 | 79,782 |
| Total comprehensive income for the period | 9,140 | 1,705 | 21,288 | -5,620 | -10,225 |
| Dividend | - | - | - | - | -31,753 |
| Closing balance | 59,091 | 74,161 | 59,091 | 74,161 | 37,803 |
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 10 OF 15
CONSOLIDATED STATEMENT OF CASH FLOWS (SEK 1000)
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE Months 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Result after financial items continued operations | 11,164 | 14,372 | 31,827 | 32,899 | 44,385 |
| Result after financial items discontinued operations | - | -12,076 | -4,527 | -37,664 | -53,573 |
| Result after financial items | 11,164 | 2,296 | 27,300 | -4,765 | -9,188 |
| Depreciation and write-down of assets | 2,064 | 1,868 | 6,804 | 7,347 | 11,292 |
| Unrealized gain/loss on current investments | -23 | -590 | -937 | -2,497 | -2,694 |
| Income tax paid | 1,371 | -266 | -1,941 | -4,298 | -5,718 |
| Others | 19 | -772 | 545 | -432 | - |
| Cash flow from operating activities before change in working capital | 14,596 | 2,536 | 31,772 | -4,375 | -6,308 |
| Change in working capital | |||||
| Increase (-)/decrease (+) inventories | 118 | -706 | -394 | -532 | -259 |
| Increase (-)/decrease (+) current receivables | -797 | -402 | 3,739 | 6,159 | 2,418 |
| Increase (+)/decrease (-) liabilities | -5,873 | -3,474 | -13,995 | 3,902 | 13,622 |
| Cash flow from operating activities | 8,043 | -2,047 | 21,121 | 5,154 | 9 473 |
| Investing activities | |||||
| Investments in intangible assets | -1,354 | 249 | -3,376 | 0,249 | -1,422 |
| Investments in tangible assets | - | 144 | -32 | -547 | -3,248 |
| Other financial assets | -42 | -333 | 105 | -393 | -37 |
| Cash flow from investing activities | -1,397 | 0,060 | -3,304 | -0,691 | -4 707 |
| Financing activities | |||||
| Payments of lease liabilities | -1,111 | -0,726 | -3,479 | -2,685 | -4,193 |
| Cash transfer to subsidiary* | - | - | -20,725 | - | - |
| Cash flow from financing activities | -1,111 | -0,726 | -24,204 | -2,685 | -4,193 |
| Cash flow for the period | 5,536 | -2,711 | -6,386 | 1,779 | 573 |
| Change of liquid assets | |||||
| Liquid assets at beginning of period | 35,068 | 50,846 | 46,931 | 46,356 | 46,356 |
| Liquid assets at period end | 40,605 | 48,135 | 40,605 | 48,135 | 46,931 |
- Transfer of liquid funds to subsidiaries in connection with the distribution of the same
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 11 OF 15
PARENT COMPANY INCOME STATEMENT (SEK 1000)
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Net sales | 25,305 | 26,038 | 85,261 | 70,669 | 98,099 |
| Other income | 1,604 | - | 1,604 | - | - |
| Total revenues | 26,909 | 26,038 | 86,865 | 70,669 | 98,099 |
| Goods for resale | -581 | -417 | -1,922 | -1,411 | -1,967 |
| Other external costs | -6,660 | -8,907 | -22,533 | -25,041 | -36,515 |
| Personnel costs | -7,633 | -12,137 | -31,524 | -42,982 | -61,851 |
| Depreciation | -863 | -1,711 | -3,261 | -5,513 | -7,224 |
| Write-down of intangible assets | - | - | - | - | - |
| Operating results | 11,172 | 2,865 | 27,625 | -4,278 | -9,458 |
| Interest income | - | - | - | - | - |
| Interest cost | - | -10 | -2 | -12 | -13 |
| Results after financial items | 11,172 | 2,855 | 27,623 | -4,289 | -9,471 |
| Provision for tax allocation reserve | - | - | - | - | 8,975 |
| Tax | -2,359 | -536 | -5,851 | 1,090 | -313 |
| Net results | 8,813 | 2,319 | 21,772 | -3,199 | -809 |
PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME (SEK 1000)
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Net result for the period | 8,813 | 2,319 | 21,772 | -3,199 | -809 |
| Other comprehensive income | |||||
| Other comprehensive income that may be reclassified to profit or loss in subsequent periods (net of tax) | |||||
| Effect of currency hedging | 225 | -618 | -689 | -2,524 | -2,694 |
| Total other comprehensive income | 225 | -618 | -689 | -2,524 | -2,694 |
| Total comprehensive income for the period | 9,038 | 1,701 | 21,083 | -5,723 | -3,503 |
PARENT COMPANY FINANCIAL HIGHLIGHTS
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Average number of shares | 77,367,500 | 77,367,500 | 77,367,500 | 77,367,500 | 77,367,500 |
| Operating margin (per cent) | 41.5 | 11.0 | 31.8 | -6.1 | -9.6 |
| Solidity (per cent) | 68.8 | 69.0 | 68.8 | 69.0 | 35.9 |
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 12 OF 15
PARENT COMPANY NET SALES BY REGION (MSEK)
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Asia | 18.3 | 13.1 | 59.5 | 42.3 | 61.5 |
| Europe | 2.8 | 4.7 | 14.1 | 13.9 | 19.0 |
| America | 4.2 | 8.2 | 11.7 | 14.5 | 17.6 |
| Net sales | 25.3 | 26.0 | 85.3 | 70.7 | 98.1 |
PARENT COMPANY NET SALES BY PRODUCT (MSEK)
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| AR | 4.5 | 4.3 | 15.2 | 14.2 | 19.2 |
| US 20 | 19.4 | 17.1 | 54.8 | 44.2 | 61.8 |
| US 30 | 0.6 | 2.1 | 6.6 | 6.5 | 9.1 |
| MA | 1.2 | 1.4 | 4.7 | 3.6 | 5.4 |
| Others (IAV, ET, Mammo) | 0.3 | 0.7 | 1.9 | 1.2 | 1.3 |
| Services | -0.7 | 0.4 | 2.1 | 1.0 | 1.3 |
| Net sales | 25.3 | 26.0 | 85.3 | 70.7 | 98.1 |
Q3 as well as historical net sales has been reclassified from Product to Services.
PARENT COMPANY REVENUE BY COUNTRY (MSEK)
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Korea | 6.5 | 6.7 | 24.0 | 19.4 | 27.6 |
| China | 8.2 | 3.4 | 22.2 | 12.6 | 17.8 |
| Japan | 3.5 | 3.6 | 11.5 | 11.7 | 15.9 |
| USA | 4.2 | 7.3 | 11.5 | 12.3 | 16.0 |
| Sweden | -0.9 | - | 1.2 | - | - |
| Other countries | 3.8 | 5.0 | 14.9 | 14.7 | 20.8 |
| Net sales | 25.3 | 26.0 | 85.3 | 70.7 | 98.1 |
| Other income | |||||
| Sweden | 1.6 | - | 1.6 | - | - |
| Total revenue | 26.9 | 26.0 | 86.9 | 70.7 | 98.1 |
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 13 OF 15
PARENT COMPANY BALANCE SHEET IN SUMMARY (SEK 1000)
| SEP 30^{th} 2022 | SEP 30^{th} 2021 | DEC 31^{st} 2021 | |||
|---|---|---|---|---|---|
| Intangible fixed assets | 9,713 | 19,467 | 8,622 | ||
| Tangible assets | 2,792 | 2,167 | 3,736 | ||
| Other financial assets | 978 | 820 | 1,421 | ||
| Inventories | 1,421 | 1,300 | 1,027 | ||
| Current receivables | 28,787 | 24,053 | 29,537 | ||
| Cash and bank | 39,870 | 47,731 | 25,211 | ||
| Assets for distribution to owners | - | - | 31,753 | ||
| Total assets | 83,562 | 95,537 | 101,307 | ||
| Equity | 57,492 | 65,942 | 36,408 | ||
| Untaxed reserves | 680 | 9,655 | 680 | ||
| Current liabilities | 25,390 | 19,940 | 32,466 | ||
| Dividend payable | - | - | 31,753 | ||
| Total equity and liabilities | 83,562 | 95,537 | 101,307 |
PARENT COMPANY CHANGE IN EQUITY IN SUMMARY (SEK 1000)
| Q3 2022 | Q3 2021 | NINE MONTHS 2022 | NINE MONTHS 2021 | FULL YEAR 2021 | |
|---|---|---|---|---|---|
| Opening balance | 48,454 | 64,240 | 36,409 | 71,665 | 71,665 |
| Total comprehensive income for the period | 9,038 | 1,701 | 21,083 | -5,723 | -3,503 |
| Dividend | - | - | - | - | -31,753 |
| Closing balance | 57,492 | 65,942 | 57,492 | 65,942 | 36,409 |
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 14 OF 15
NOTE 1
CONSOLIDATED INCOME STATEMENT (SEK 1000)
NET SALES DISCONTINUED OPERATIONS
| Q1 2013 | Q1 2014 | NINE MONTHS 2013 | NINE MONTHS 2014 | FULL YEAR 2014 | |
|---|---|---|---|---|---|
| Net sales discontinued operations | -288 | - | - | - | - |
| Other income discontinued operations* | 288 | - | 288 | - | - |
| Total revenues | - | - | 288 | - | - |
| Goods for resale | - | - | -1 | - | - |
| Other external costs | - | -4,743 | -2,043 | -13,572 | -19,776 |
| Personnel costs | - | -5,902 | -2,030 | -19,964 | -28,276 |
| Depreciation | - | -1,415 | -733 | -4,097 | -5,474 |
| Write-down of intangible assets | - | - | - | - | - |
| Operating results | - | -12,060 | -4,520 | -37,633 | -53,526 |
| Interest income | - | - | - | - | - |
| Interest cost | - | -16 | -7 | -48 | -47 |
| Results after financial items | - | -12,076 | -4,527 | -37,681 | -53,573 |
| Tax | - | 2,488 | - | 7,762 | 11,036 |
| Net results from discontinued operations | - | -9,587 | -4,527 | -29,918 | -42,537 |
*Sales refers to accumulated re-invoicing of costs to Inify Laboratories AB of KSEK 288 in 2022.
CONTEXTVISION AB 556377-8900//THIRD QUARTER 2022 FINANCIAL REPORT/PAGE 15 OF 15
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.
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 LABORATORIES AB
Former subsidiary of ContextVision that was spun off on 9th February 2022. Inify Laboratories AB is now listed on the Oslo Börs under ticker "INIFY".
MACHINE LEARNING
Machine learning is the study of computer algorithms that improve automatically through experience.
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.
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.
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 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.
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 CONTX.
FOR MORE INFORMATION, PLEASE VISIT WWW.CONTEXTVISION.COM