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ContextVision AB Interim / Quarterly Report 2022
9979_10-k_2023-02-16_12cb0fa0-af96-46c6-9280-a78a470c14e5.pdf
Interim / Quarterly Report
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ContextVision
CONTEXTVISION AB
INTERIM FINANCIAL
REPORT Q4 AND FULL
YEAR 2022
Q4 HIGHLIGHTS
- Sales record with best quarter and best full year
- Deliveries of new product ‘Rivent mobile’ for handheld Ultrasound growing
- Successful spin-off of Inify Laboratories AB
- Outsourcing of license delivery logistics completed
Q4 FINANCIAL DATA
- Net sales continued operations* of SEK 32.6 M (27.4)
- Operating result continued operations of SEK 9.1 M (10.9)
- Earnings per share continued operations of SEK 0.10 (0.11)
- EBITDA continued operations of SEK 11.0 M (12.3)
2022 FULL YEAR FINANCIAL DATA
- Net sales continued operations* of SEK 117.8 M (98.1)
- Operating result continued operations of SEK 41.1 M (44.5)
- Earnings per share continued operations of SEK 0.43 (0.45)
- EBITDA continued operations of SEK 49.1 M (50.3)
- For further information, see discontinued Operations on page 4
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 2 OF 14
STRONGEST QUARTER IN COMPANY HISTORY
Gerald Pötzsch, THE COMPANY'S CEO COMMENTED:
Record net sales in the fourth quarter increased by 19 percent to SEK 32.6 M (27.4). For the full year net sales increased 20 percent to SEK 117.8 M (98.1). Based on constant exchange rate net sales increased in 2022 by 9 percent showing our core business growing substantially stronger than the imaging market. This represents the strongest fiscal quarter and full year in ContextVisions's history.
EBITDA reached SEK 11.0 M (12.3) in Q4. EBITDA has been impacted significantly due to the spin-off from Inify Laboratories in February 2022. ContextVision has during the year been managing the effect of previously shared costs and believes that the current cost structure represents the full effect from the spin-off. The decrease in Q4 EBITDA is additionally impacted by post pandemic recovery and strategic outsourcing for operational IT. Post pandemic higher sales and marketing cost reflecting more in-person customer events and meetings including travel and exhibitions impact Q4 still delivering solid full year result of 41.7% EBITDA.
Growing our Core business
Product mix remains unchanged with Ultrasound having 71% of total net sales. On top of strong underlying growth for our Ultrasound products we already see sales supported by new Rivent mobile customers.
Within X-ray, our Altumira product with its AI functionality has increased the market share and sales continued to grow each quarter of 2022, resulting in sales of SEK 13 M for the full year, also supported by the launch of our new OEM Tuning interface solution.
Geographically, Asia contributed with the strongest growth rate for the full year, however the USA market delivered a solid double digit growth rate in Q4. Our geographical mix remains unchanged with the largest markets being Asia, 68 percent of net sales, and Europe, 17 percent over the year.
Many vital meetings and successful discussions were held around the globe. The IEEE IUS (International Ultrasonics Symposium) in Venice in October resulted in our first customer contract for Rivent 3D, and RSNA (Radiological Society of North America) in Chicago in November expanded our customer base for the upgraded Rivent Plus while also revealing a strong demand for Rivent Mobile. Once pioneers in this field, we continue to lead the development of image enhancement within ultrasound.
Strengthening the organization
In Q4 we completed the formation of the new organization post Inify spin-off. Over the year this included investments in key positions as well as new personal in R&D, Product Management as well as Sales and Marketing. While increasing operational efficiency through improvements in infrastructure and developing the organization we successfully kept our eNPS score (Employee Net Promoter Score) in the high 40:s compared to an index value of 14.
We now have the people, the products, and the customer base to grow the company further. While we expand, we will continue to invest incessantly on our high-performing teams and we will also continue to explore further opportunities for growth utilizing our core competence and experience.
Summary
2022 was the most successful year for ContextVision, successfully accelerating our growth in License and Service Sales, while creating a resilient organization after the Spin Off of our digital pathology business. Successfully focusing on the Core, we completed our strongest quarter in history. In 2023, we want to continue the journey as a growth company.
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 3 OF 14
FOURTH QUARTER 2022 AND FULL YEAR 2022
FINANCIAL INFORMATION
NET SALES
- ContextVision's net sales from continuing operations in the fourth quarter 2022 amounted to SEK 32.6 M (27.4). This represents an increase of 19% compared to the same quarter previous year. For the full year net sales amounted to SEK 117.8 M (98.1) an increase of 20% compared to last year.
- All license sales are generated outside Sweden and from external sales.
- The currency exchange rates had an average positive effect on sales of 9% for the full year and 12% in the quarter. For both full year and the quarter there were positive effects from invoicing currencies, EUR, USD and negative effects from JPY.
OTHER INCOME
- Other Income from co-working agreement with Inify Laboratories AB amounts to SEK 2.0 M during the year for the group.
OPERATING PROFIT AND MARGIN
- The operating result for ContextVision's continued operation is SEK 9.1 M (10.9) in the fourth quarter and SEK 41.1 M (44.5) for the full year. The operating margin was 28.1% (39.8%) in the quarter and 34.9% (45.3) for the full year.
- EBITDA from continued operations for the fourth quarter reached SEK 11.0 M (12.3) and SEK 49.1 M (50.3) for the full year.
- Capitalization is recorded as intangible fixed assets only when product development meets certain requirements.
- Capitalized costs relating to continuing operations of SEK 0.5 M (0.9) were recorded during the fourth quarter and SEK 3.7 M for the full year (1.4). The capitalized cost is reported as "Capitalized work for own account" in the income section.
| Earnings per share from continued operations | Q4 2022 | Q4 2021 | Full year 2022 | Full year 2021 |
|---|---|---|---|---|
| Net results (SEK K) | 7,380 | 8,139 | 33,319 | 34,884 |
| Average number of shares | 77,367,500 | 77,367,500 | 77,367,500 | 77,367,500 |
| Earnings per share | 0.10 | 0.11 | 0.43 | 0.45 |
| Operating margin from continued operations | Q4 2022 | Q4 2021 | Full year 2022 | Full year 2021 |
| --- | --- | --- | --- | --- |
| Operating income (SEK K) | 9,143 | 10,913 | 41,133 | 44,483 |
| Non-recurring items (SEK K) | - | - | - | - |
| Net sales (SEK K) | 32,564 | 27,430 | 117,825 | 98,099 |
| Operating margin | 28.1% | 39.8% | 34.9% | 45.3% |
| Profit margin from continued operations | Q4 2022 | Q4 2021 | Full year 2022 | Full year 2021 |
| --- | --- | --- | --- | --- |
| Result after financial items (SEK K) | 9,219 | 10,892 | 41,045 | 44,385 |
| Net sales (SEK K) | 32,564 | 27,430 | 117,825 | 98,099 |
| Profit margin | 28.3% | 39.7% | 34.8% | 45.2% |
| Equity ratio from continued operations | Q4 2022 | Q4 2021 | Full year 2022 | Full year 2021 |
| --- | --- | --- | --- | --- |
| Equity at period end (SEK K) | 66,529 | 37,803 | 66,529 | 37,803 |
| Total assets (SEK K) | 97,738 | 110,632 | 97,738 | 110,632 |
| Equity ratio | 68.1% | 34.2% | 68.1% | 34.2% |
| EBITDA from continued operations | Q4 2022 | Q4 2021 | Full year 2022 | Full year 2021 |
| --- | --- | --- | --- | --- |
| Net results | 7,380 | 8,139 | 33,319 | 34,884 |
| Interests | -76 | 21 | -88 | 98 |
| Taxes | 1,839 | 2,753 | 7,726 | 9,501 |
| Depreciation and impairment | 1,876 | 1,391 | 7,946 | 5,818 |
| Amortization | - | - | - | - |
| EBITDA (SEK K) | 11,019 | 12,304 | 49,079 | 50,301 |
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 4 OF 14
CASH-FLOW AND FINANCIAL POSITION
- The cashflow in the fourth quarter was SEK 1.3 M (-1.2).
- Cash at period end amounted to SEK 41.9 M (26.2).
- Equity at period end amounted to SEK 66.5 M (37.8), giving an equity ratio of 68.1% (34.2%).
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 December 31st, 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.
- Net derivative value at the balance sheet date amounts to SEK -2,457 K.
EMPLOYEES AND MANAGEMENT
- At period end the group had 35 (53) employees of which 12 (19) are dedicated to research and development. 1 employee is located in the USA and 1 in China.
OTHER INFORMATION
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. Inify Laboratories, company registration number 559345-4431 was a wholly owned subsidiary until February 10th 2022.
- 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.
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 SEK 0.7 M, intangible assets of SEK 10.1 M, intellectual property rights and cash of SEK 20.5 M 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.
DIVIDEND OF SHARES IN SUBSIDIARY INIFY LABORATORIES
- 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.
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.
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 5 OF 14
- Russia's invasion of Ukraine has affected the company. We have stopped all new marketing to 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 ContextVision 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 4th quarter ended December 31, 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.
- The functional currency of the parent company is the Swedish krona which also is the reporting currency for the group and the parent company. All amounts, if nothing else is stated, are presented in SEK thousand with one decimal. The amounts in tables and reports do not always sum up exactly to the total amount due to rounding. The purpose is that each amount should equal its origin and rounding differences can therefore occur.
NEW AND CHANGED ACCOUNTING PRINCIPLES
- No new or changed accounting principles have had effect on the accounting for the period.
COMPANY MAJOR SHAREHOLDERS
| The 10 largest shareholders as per December 31^{st} 2022 | No of shares | [%] |
|---|---|---|
| Monsus AS | 23,000,000 | 29.73 |
| Sven Gunther-Hansen | 8,516,670 | 11.01 |
| Martin Hedlund | 8,316,660 | 10.75 |
| Mats. Svend Bank and Trust Comp | 4,282,185 | 5.53 |
| TAUBI AS | 3,883,275 | 5.02 |
| MILPENSON PK | 2,578,023 | 3.33 |
| BRAS KAPITAL AS | 2,120,347 | 2.74 |
| Westerbank AS | 1,726,970 | 2.23 |
| STOCKHOLM | 1,700,000 | 2.20 |
| Swedbank AB | 1,174,346 | 1.52 |
| Others | 20,069,024 | 25.94 |
| Total outstanding shares | 77,367,500 | 100.00 |
ANNUAL GENERAL MEETING
- The Annual General Meeting will take place May 3, 2023, at Holländargatan 13, 2 tr Stockholm, Sweden.
THE BOARD OF DIRECTORS AND THE CEO ASSURANCE
We confirm to the best of our knowledge that the condensed set of financial statements for the period October 1st to December 31st 2022, has been prepared in accordance with IAS 34- Interim Financial Reporting, and gives a true and fair view of the Group's assets, liabilities, financial position and result for the period viewed in the entirety, and that the interim management report, to the best of our knowledge, includes a fair review of any significant events that arose during the three-month period and their effect on the full year financial report, and any significant related parties transactions.
Stockholm 2023-02-15
Olof Sandén – Chairman of the board
Sven Gunther-Hansen – Member of the board
Martin Hedlund – Member of the board
Magne Jordanger – Member of the board
Martin Ingvar – Member of the board
Gerald Pötzsch – CEO of ContextVision AB
This report has not been reviewed by the company's auditors.
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 6 OF 14
PRESENTATION AND REPORTING DATES
This quarterly report will be published on the company's website on the 16th of February 2023.
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 2022 | February 16, 2023 |
|---|---|
| Annual report available on company's website | March 30, 2023 |
| Q1 result 2023 | April 27, 2023 |
| Annual General Meeting | May 3, 2023 |
| Q2 result 2023 | August 24, 2023 |
| Q3 result 2023 | October 26, 2023 |
| Q4 and 12 months 2023 | February 15, 2024 |
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//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 7 OF 14
CONSOLIDATED INCOME STATEMENT
| SEK K | Q4 2022 | Q4 2021 | FULL YEAR 2022 | FULL YEAR 2021 |
|---|---|---|---|---|
| Net sales | 32,564 | 27,430 | 117,825 | 98,099 |
| Capitalized work for own account | 3,673 | 932 | 3,673 | 1,421 |
| Other income | 398 | - | 1,714 | - |
| Total income | 36,635 | 28,362 | 123,212 | 99,520 |
| Goods for resale | -483 | -556 | -2,404 | -1,967 |
| Other external costs | -11,320 | -3,438 | -25,851 | -9,834 |
| Employee benefits | -13,813 | -12,064 | -45,878 | -37,418 |
| Depreciation and amortization | -1,876 | -1,391 | -7,946 | -5,818 |
| Operating results | 9,143 | 10,913 | 41,133 | 44,483 |
| Interest income | 111 | - | 111 | - |
| Interest cost | -35 | -21 | -199 | -98 |
| Results after financial items | 9,219 | 10,892 | 41,045 | 44,385 |
| Tax | -1,839 | -2,753 | -7,726 | -9,501 |
| Net results from continued operations | 7,380 | 8,139 | 33,319 | 34,884 |
| Discontinued operations | ||||
| Net results (after tax) from discontinued operations | - | -12,632 | -4,527 | -42,537 |
| Net results from continued operations and discontinued operations | 7,380 | -4,493 | 28,791 | -7,653 |
Capitalized cost are reclassified from cost to income section as "Capitalized cost for own account". The full year amount is reported in Q4 due to this reclassification. During Q4 Capitalized cost for own account was SEK 0.5 M.
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
| SEK K | Q4 2022 | Q4 2021 | FULL YEAR 2022 | FULL YEAR 2021 |
|---|---|---|---|---|
| Net result for the period continued operations and discontinued operations | 7,380 | -4,493 | 28,791 | -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 | 153 | -146 | -535 | -2,671 |
| Translation difference | -95 | 34 | 175 | 99 |
| Result from subsidiary Inify Laboratories | - | - | 295 | - |
| Total other comprehensive income | 58 | -112 | -65 | -2,572 |
| Total comprehensive income for the period continuing operations | 7,438 | -4,605 | 28,726 | -10,225 |
FINANCIAL HIGHLIGHTS FOR THE GROUP
| Q4 2022 | Q4 2021 | FULL YEAR 2022 | FULL YEAR 2021 | |
|---|---|---|---|---|
| Earnings per share (SEK) from continued operations before/after dilution | 0.10 | 0.11 | 0.43 | 0.45 |
| Average number of shares | 77,367,500 | 77,367,500 | 77,367,500 | 77,367,500 |
| Operating margin (per cent) continued operations | 28.1 | 39.8 | 34.9 | 45.3 |
| Solitary (per cent) continued operations | 68.1 | 34.2 | 68.1 | 34.2 |
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 8 OF 14
CONSOLIDATED BALANCE SHEET IN SUMMARY
| SEK K | DEC 31^{st} 2022 | DEC 31^{st} 2023 |
|---|---|---|
| Intangible fixed assets | 9,541 | 8,622 |
| Tangible fixed assets | 3,700 | 3,736 |
| Right-of-use assets | 5,161 | 10,008 |
| Financial fixed assets | 1,254 | 704 |
| Inventories | 1,272 | 1,027 |
| Current receivables | 34,952 | 28,576 |
| Cash and cash equivalent | 41,858 | 26,205 |
| Assets for dividend | - | 31,753 |
| Total assets | 97,738 | 110,632 |
| Equity | 66,529 | 37,803 |
| Deferred taxes | 146 | 146 |
| Non-current lease liabilities | 1,881 | 4,854 |
| Current liabilities | 26,636 | 31,844 |
| Current lease liabilities | 2,546 | 4,232 |
| Italy Laboratories AB shares for dividend | - | 31,753 |
| Total equity and liabilities | 97,738 | 110,632 |
CHANGE IN EQUITY IN SUMMARY
| SEK K | Q4 2022 | Q4 2021 | FULL YEAR 2022 | FULL YEAR 2021 |
|---|---|---|---|---|
| Opening balance | 59,091 | 74,161 | 37,803 | 79,781 |
| Total comprehensive income for the period | 7,438 | -4,605 | 28,726 | -10,225 |
| Dividend | - | -31,753 | - | -31,753 |
| Closing balance | 66,529 | 37,803 | 66,529 | 37,803 |
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 9 OF 14
CONSOLIDATED STATEMENT OF CASH FLOWS
| SEK K | Q4 2022 | Q4 2021 | Full Year 2022 | Full Year 2021 |
|---|---|---|---|---|
| Operating Profit continued operations | 9,142 | 10,913 | 41,133 | 44,483 |
| Operating Profit discontinued operations | - | -15,893 | -4,520 | -53,526 |
| Total Operating Profit | 9,142 | -4,980 | 36,613 | -9,043 |
| Adjustment of items not included in the cashflow | ||||
| Depreciation and impairment of assets | 1,876 | 3,132 | 8,680 | 11,292 |
| Unrealized gain/loss on current investments | 153 | -169 | -536 | - |
| Interest Payments | 76 | -37 | -95 | -145 |
| Income tax paid | 1,346 | -825 | -2,821 | -5,718 |
| Others | 560 | -1,533 | 1,104 | -2,694 |
| Cash flow from operating activities before change in working capital | 13,154 | -4,412 | 42,946 | -6,308 |
| Change in working capital | ||||
| Increase (-)/decrease (+) inventories | 150 | 272 | -244 | -259 |
| Increase (-)/decrease (+) current receivables | -9,495 | -2,237 | -7,029 | 2,418 |
| Increase (+)/decrease (-) liabilities | 571 | 17,869 | -10,173 | 13,622 |
| Cash flow from operating activities | 4,380 | 11,493 | 25,499 | 9,473 |
| Investing activities | ||||
| Investments in intangible assets | -544 | -932 | -3,673 | -1,422 |
| Investments in tangible assets | -1,155 | -2,533 | -1,155 | -3,249 |
| Investments in right-of-use assets | 285 | -8,229 | 390 | - |
| Investments in financial assets | -532 | 172 | -473 | -37 |
| Cash flow from investing activities | -1,946 | -11,521 | -4,911 | -4,707 |
| Financing activities | ||||
| Payments of lease liabilities | -1,180 | -1,177 | -4,659 | -4,193 |
| Paid dividend | - | -500 | ||
| Cash transfer to subsidiary* | - | - | -20,503 | - |
| Cash flow from financing activities | -1,180 | -1,177 | -25,662 | -4,193 |
| Cash flow for the period | 1,253 | -1,204 | -5,073 | 573 |
| Change of cash and cash equivalent | ||||
| Cash and cash equivalent at beginning of period | 40,605 | 48,135 | 46,931 | 46,356 |
| Cash and cash equivalent at period end | 41,858 | 46,931 | 41,858 | 46,931 |
- Transfer of liquid funds to subsidiaries in connection with the distribution of the same
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 10 OF 14
PARENT COMPANY INCOME STATEMENT
| SEK K | Q4 2022 | Q4 2021 | FULL YEAR 2022 | FULL YEAR 2021 |
|---|---|---|---|---|
| Net sales | 32,564 | 27,430 | 117,825 | 98,099 |
| Capitalized work for own account | 3,673 | 932 | 3,673 | 1,421 |
| Other income | 398 | - | 2,002 | - |
| Total income | 36,635 | 28,362 | 123,500 | 99,520 |
| Goods for resale | -483 | -556 | -2,406 | -1,967 |
| Other external costs | -13,084 | -11,621 | -35,617 | -36,753 |
| Employee benefits | -13,130 | -19,654 | -44,654 | -63,034 |
| Depreciation and amortization | -962 | -1,711 | -4,223 | -7,224 |
| Operating results | 8,975 | -5,180 | 36,600 | -9,458 |
| Interest income | 111 | - | 111 | - |
| Interest cost | - | -1 | -2 | -13 |
| Results after financial items | 9,086 | -5,181 | 36,709 | -9,471 |
| Provision for tax allocation reserve | - | 8,975 | - | 8,975 |
| Tax | -1,799 | -1,404 | -7,650 | -313 |
| Net results | 7,287 | 2,390 | 29,059 | -809 |
Capitalized cost are reclassified from cost to income section as "Capitalized cost for own account". The full year amount is reported in Q4 due to this reclassification. During Q4 Capitalized cost for own account was SEK 0.5 M.
PARENT COMPANY FINANCIAL HIGHLIGHTS
| Q4 2022 | Q4 2021 | FULL YEAR 2022 | FULL YEAR 2021 | |
|---|---|---|---|---|
| Average number of shares | 77,367,500 | 77,367,500 | 77,367,500 | 77,367,500 |
| Operating margin (per cent) | 27.56 | -18.9 | 31.1 | -9.6 |
| Solidity (per cent) | 69.8 | 35.9 | 69.8 | 35.9 |
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 11 OF 14
PARENT COMPANY BALANCE SHEET IN SUMMARY
| SEK K | DEC 31^{st} 2022 | DEC 31^{st} 2021 |
|---|---|---|
| Intangible fixed assets | 9,541 | 8,622 |
| Tangible fixed assets | 3,700 | 3,736 |
| Financial fixed assets | 1,471 | 1,421 |
| Inventories | 1,272 | 1,027 |
| Current receivables | 35,915 | 29,537 |
| Cash and cash equivalent | 41,085 | 25,211 |
| Assets for distribution to owners | - | 31,753 |
| Total assets | 92,984 | 101,307 |
| Equity | 64,932 | 36,408 |
| Untaxed reserves | 680 | 680 |
| Current liabilities | 27,372 | 32,466 |
| Dividend payable | - | 31,753 |
| Total equity and liabilities | 92,984 | 101,307 |
PARENT COMPANY CHANGE IN EQUITY IN SUMMARY
| SEK K | Q4 2022 | Q4 2021 | FULL YEAR 2022 | FULL YEAR 2021 |
|---|---|---|---|---|
| Opening balance | 57,492 | 65,941 | 36,408 | 71,665 |
| Net result | 7,287 | 2,390 | 29,059 | -809 |
| Effect on currency hedging | 153 | -169 | -535 | -2,694 |
| Dividend | - | -31,753 | - | -31,753 |
| Closing balance | 64,932 | 36,408 | 64,932 | 36,408 |
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 12 OF 14
NOTE 1 INCOME STATEMENT DISCOUNTINED OPERATIONS
INCOME STATEMENT DISCONTINUED OPERATIONS
| SEK K | Q4 2022 | Q4 2021 | FULL YEAR 2022 | FULL YEAR 2021 |
|---|---|---|---|---|
| Net sales discontinued operations | - | - | - | - |
| Other income discontinued operations* | - | - | 288 | - |
| Total income | - | - | 288 | - |
| Goods for resale | - | - | -1 | - |
| Other external costs | - | -6,204 | -2,043 | -19,776 |
| Employee benefits | - | -8,312 | -2,030 | -28,276 |
| Depreciation and amortization | - | -1,377 | -733 | -5,474 |
| Operating results | - | -15,893 | -4,520 | -53,526 |
| Interest income | - | - | - | - |
| Interest cost | - | -16 | -7 | -47 |
| Results after financial items | - | -15,909 | -4,527 | -53,573 |
| Tax | - | 3,277 | - | 11,036 |
| Net results from discontinued operations | - | -12,632 | -4,527 | -42,537 |
*Other income refers to accumulated re-invoicing of costs to Inify Laboratories AB of SEK 288 K in 2022.
NOTE 2 NET SALES CONTINUED OPERATIONS
NET SALES BY PRODUCT AND SERVICE, CONTINUED OPERATIONS
| SEK M | Q4 2022 | Q4 2021 | FULL YEAR 2022 | FULL YEAR 2021 |
|---|---|---|---|---|
| XR | 7.5 | 5.0 | 22.8 | 19.2 |
| US 2D | 20.3 | 17.6 | 75.1 | 61.8 |
| US 3D | 1.9 | 2.6 | 8.5 | 9.1 |
| MR | 1.9 | 1.8 | 6.5 | 5.4 |
| Others (iRV, CT, Mammo) | 0.6 | 0.1 | 2.5 | 1.3 |
| Services | 0.4 | 0.3 | 2.4 | 1.3 |
| Net sales | 32.6 | 27.4 | 117.8 | 98.1 |
Historical net sales have been reclassified from Product to Services.
INCOME BY COUNTRY, CONTINUED OPERATIONS
| SEK M | Q4 2022 | Q4 2021 | FULL YEAR 2022 | FULL YEAR 2021 |
|---|---|---|---|---|
| Korea | 9.5 | 8.2 | 33.4 | 27.6 |
| China | 7.7 | 5.2 | 29.9 | 17.8 |
| Japan | 3.9 | 4.2 | 15.4 | 15.9 |
| USA | 5.2 | 3.7 | 16.7 | 16.0 |
| Sweden | - | - | 1.3 | - |
| Other countries | 6.3 | 6.1 | 21.1 | 20.8 |
| Net sales | 32.6 | 27.4 | 117.8 | 98.1 |
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 13 OF 14
NOTE 3 RELATED PARTY TRANSACTIONS
During the year ContextVision has supplied both consultancy and coworking services to Inify Laboratories AB at the total amount of SEK 3.3 M. Remuneration according to employment contract has been paid to key personnel.
NOTE 4 SUBSEQUENT EVENTS
No significant events have occurred during the period between period-end and date of issuance of this report.
DEFINITIONS
ContextVision presents certain financial measures in the financial statements that are not defined under IFRS. ContextVision believes that these measures provide useful supplementary information to investors and the management as they allow for evaluation of ContextVision'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) from continued operations | Net result for the period as a percentage of the average number of shares | Earnings per share shows the group's results in relation to shares and provides investors with additional information regarding the group'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 group's potential for dividends. |
| Profit margin from continued operations | Result after financial items as a percentage of net sales | The profit margin shows the group's results per SEK revenue and is of interest for both the group and for investors. |
| Solidity (Equity ratio) from continued operations | Equity at period end as a percentage of total assets | The equity ratio shows the group'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 group's underlying development, which is valuable as an indication of the group's underlying cash-generating capacity. |
CONTEXTVISION AB 556377-8900//FOURTH QUARTER 2022 FINANCIAL REPORT/PAGE 14 OF 14
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