SyntheticMR Reports Mixed Q2 Results Amid Market Fluctuations
SyntheticMR's Q2 results reveal varied performance across global markets, highlighting both challenges and opportunities for growth.
Sammanfattning
SyntheticMR's Q2 report shows mixed results, with strong sales growth in the US offset by declines in Asia. The company remains optimistic about future prospects.
During the second quarter, SyntheticMR's sales reached SEK 12.4 million, marking a marginal increase from the previous year's SEK 11.9 million. The performance, however, varied significantly across different markets. In the United States, sales surged to SEK 6.1 million from SEK 2.0 million, primarily driven by OEM business, despite low demand for the SyMRI product. Conversely, in Europe, sales rose to SEK 4.7 million, with strong direct sales of SyMRI compensating for weak OEM business.
Asia presented a challenge this quarter, with sales dropping to SEK 1.6 million from SEK 5.8 million, due to postponed business activities in Japan and delayed deliveries in India. A significant hurdle in the US market is the uncertainty surrounding NIH research funding, with proposed budget cuts by President Trump adding to the hesitation among customers.
On a positive note, the Combinostics business acquired in Finland is performing well, with a 30% increase in ARR for the cNeuro product, reaching SEK 11.2 million. This growth is supported by high customer loyalty and ongoing regulatory processes aimed at expanding into the Asian market. Despite a 15% decrease in sales from comparable units, largely due to currency fluctuations, the company remains focused on stabilizing its operations across markets.
Operational efficiency remains a priority, with cost-saving measures contributing to a positive cash flow, despite an operating loss of SEK 8.6 million. The publication of a major study in the American Journal of Neuroradiology, which highlights the clinical quality of SyntheticMR's technology, bolsters the company's reputation in the field of synthetic quantitative MRI.
Looking forward, the appointment of Lena Åredal as the new CEO is expected to drive the company's growth journey. With her commercial expertise and leadership skills, SyntheticMR is poised to navigate the challenges of NIH funding uncertainties and macroeconomic fluctuations, while capitalizing on its innovative technology to address global healthcare demands.
Given the mixed performance and strategic initiatives in place, investors may consider holding their positions as the company works to stabilize and enhance its market presence.
Källa
Sammanfattning
During the second quarter, SyntheticMR's sales reached SEK 12.4 million, a slight increase from the previous year. The performance varied across regions: in the USA, sales rose significantly due to OEM business, while SyMRI demand remained low; in Europe, direct sales of SyMRI grew despite weak OEM performance; and in Asia, sales dropped due to postponed business in Japan and delayed deliveries in India. Uncertainty regarding NIH research funding in the US, due to proposed budget cuts by President Trump and counter-proposals by the Senate, has impacted SyMRI sales. The acquired Finnish business, Combinostics, showed positive growth, with an increase in ARR for its cNeuro product. However, excluding this acquisition, sales from comparable units decreased by over 15%, partly due to currency fluctuations. Operating profit was SEK –8.6 million, but positive cash flow was achieved through efficient working capital management. A recent American study highlighted the high quality of SyntheticMR's SyMRI 3D technology. Despite challenges, the company remains confident in its long-term position as a leader in synthetic quantitative MRI. Lena Åredal has been appointed as the new CEO, effective September 1, bringing strong commercial experience to support the company's growth.
