Medicalgorithmics S.A. – Q1 2016 summary
- Another record revenue quarter: PLN 14.74 million, +35% YOY
- The results charged with additional costs related to the acquisition of Medi-Lynx Cardiac Monitoring, LLC and dispute with AMI Monitoring Inc.; after adjustment for one-time costs EBITDA is PLN 8.8 million, +24% YOY
- Increase of revenue on subscription sales by 44% YOY with stable level of revenue on device sales YOY and significant increase of device sales QOQ
- Acquisition of Medi-Lynx Cardiac Monitoring, LLC – a strategic partner on the U.S. market – provides an opportunity for speeding up the Group growth (entity consolidation starting from March 30, 2016)
- Positive reception of PocketECG technology on the annual Heart Rhythm Society international scientific conference
Medicalgorithmics S.A., a provider of cutting-edge system and algorithmic solutions for cardiac diagnosis, particularly for ECG analysis, has published financial results for Q1 2016. This was another quarter of increasing sales in a row — the Group’s revenue in this period reached the record PLN 14.74 million, which means growth by 35% YOY and 7% QOQ. The financial results for the first three months of this year were charged with additional costs related to the acquisition of Medi-Lynx Cardiac Monitoring, LLC and dispute with AMI Monitoring Inc. (AMI) equal to PLN 14.5 million. After adjustment for these one-time costs EBITDA for Q1 2016 is PLN 8.8 million, which means an increase by 24% YOY.
Taking into account the structure of sales in the discussed period, the revenue on PocketECG subscription sales increased by 44% YOY, and the revenue on the PocketECG device sales remained similar year over year.
“The sales of subscriptions reached PLN 12.3 million in the last quarter, which represented 83.5% of total revenue. In our opinion, high dynamics of revenue in this segment every quarter best reflect the increase of Medicalgorithmics business scale – we expect this trend to continue, especially after having recently finalized the acquisition of our U.S. partner – Medi-Lynx,” says Marek Dziubiński, the President of the Board of Medicalgorithmics S.A.
On March 30, 2016 the acquisition of 75% shares in Medi-Lynx for a total of USD 34.1 million was finalized, and from this date the results of this company are consolidated within the Group. Medi-Lynx manages 4 arrhythmia monitoring centers and serves customers in 36 US states. The company employs 256 people. In 2015, it gained USD 38.3 million of revenue and USD 13.5 million EBITDA (adjusted for court proceedings costs).
“The acquisition of Medi-Lynx gives us a possibility to speed up our growth in the U.S. – we already see the effects of synergy in the Group, for instance with respect to the monitoring of the efficiency of device use by customers, and we expect more. Moreover, we observe that the awareness of Medi-Lynx and PocketECG brands on the U.S. market increases. Therefore, we are optimistic about increasing our share on the market. The perception of our products among customers is very positive – the PocketECG system met with great interest among the participants of the largest industry conference Heart Rhythm Society, which is held once a year in the United States,” stresses Marek Dziubiński.
This year’s Heart Rhythm Society conference was held on May 4–7 in San Francisco. It gathered several thousand electrophysiologists and cardiologists interested in the development of science and technology in their fields. During the trade fair accompanying the conference, Medicalgorithmics S.A. presented the newest feature of PocketECG which additionally distinguishes us from the competitors – the built-in accelerometer enables a correlation of the automatically recognized patient activity with the symptoms he/she reports and occurring arrhythmias. It is extremely important in identifying the underlying causes of different arrhythmias which often threaten patients’ life and health.