STOCKHOLM – February 18, 2021 – ContextVision, a medical technology software company specializing in image processing, image analysis and decision support tools for digital pathology, today reports its fourth quarter and full year 2020 results.
Total sales 2020 reached 94.7 MSEK (95.3), which matches the record year 2019 if adjusted for currency exchange effect – a solid achievement much related to a strong start of the year. Total EBITDA ends at 25.5 MSEK and operating result reached 15.5 MSEK.
Sales in the fourth quarter reached 23.5 MSEK (28.1), a 7% increase compared with the previous quarter, but a decrease of 16% versus last year’s corresponding quarter due to pandemic effects.
“Sales are slowly increasing between the quarters, although we have not returned to where we intended to be before the pandemic. Given the circumstances, I consider total sales a solid achievement. Precautionary measures taken at the beginning of the pandemic, combined with strong sales performance, have resulted in strengthened year-end financials. The introduction phase of our first digital pathology product has been prolonged due to remote communication. However, the response from users remains very positive, and we continue to lay a solid foundation through close collaboration with reference centers. In summary, I’m proud of what we have accomplished in such a special year,” says Fredrik Palm, CEO of ContextVision.
Through the release of INIFY Prostate Screening in mid-2020, we advanced from being a potent candidate to becoming a leading player within advanced decision support tools for digital pathology. In the fourth quarter, we focused on commencing clinical evaluations at several reference sites where we have installed the product. We have continued to drive mature discussions with additional centers in the forefront of digitalization, to broaden our market footprint and build a solid foundation on which to grow. As recently announced, the latest center is the pathology department at Vall d’Hebron University Hospital in Barcelona, serving as a reference center for the region. However, we experience that the process of installs and evaluation of INIFY has been slowed with remote communication as the only option. R&D activities continued with a focus on increasing functionality in our product for prostate cancer, as well as other cancer types that are known to cause the heaviest burden on pathologists around the world.
Digital pathology is a growing market with obvious needs. As population growth and longer life expectancy cause disease rates to rise, pathologists worldwide face an ever-increasing burden. Digitalization and equipping healthcare professionals with powerful software tools is a vital key, ultimately offering improved workflow and higher quality.
Several contracts – including a business expansion with one of our global key customers in ultrasound – were signed in the fourth quarter, laying ground for further growth. Ultrasound and MRI sales are still affected by the pandemic, although we are seeing positive signs in terms of an increase in sales compared with the previous quarter. X-ray sales saw a significant increase during the year, mainly related to a strong market penetration with Altumira, our latest AI-based product line. Rivent, our 7th product generation for 2D ultrasound, continues to gain great market attention with its ability to pair exceptional image quality with extraordinary sharpness. Several mature discussions and evaluations with customers increase our optimism about signing additional contracts driven by Rivent in the upcoming year.
Projects and business discussions are making progress, although at a slower pace due to the pandemic. Tools for remote communication and customer support have been continuously enhanced throughout the year in order to drive business effectively under present circumstances. These tools and established processes will continue to be of great value after the pandemic, having expanded our options when interacting with customers and providing service.
“The result we deliver, despite completely new circumstances in the greater part of 2020, truly confirms our strong market positions and customer relations. While the near future remains unpredictable, I’m truly impressed by the determination we have seen from the team, our customers and partners in driving projects and business with remote communication. I’m cautiously optimistic about being able to return to an environment with less travel restrictions during 2021, so we can continue to drive growth,” says Palm.
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 CONTX.
For further information, please contact ContextVision’s CEO, Fredrik Palm, at +46 76 870 25 43 or visit www.contextvision.com.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act