ContextVision, a medical technology software company specializing in image analysis and artificial intelligence, released its report for Q1 2018, the strongest opening quarter in its history. Q1 sales passed 19 MSEK for the first time (19,2 MSEK), up 11 percent compared to first quarter last year.
“We are very proud to report that we sucessfully continue to expand our business. We are entering 2018 very confidently, and the company’s goal of delivering the first product within digital pathology by the end of the year, is right on track,” said Anita Tollstadius, CEO of ContextVision.
Our sales increased across all key modalities: X-ray, MRI and Ultrasound. Our 3D ultrasound software has developed particularly well, with a 23 percent increase.
Strong sales in Asia
Sales in Asia continue to grow, with a 12 percent increase compared to Q1 last year. During the first quarter, we saw growth in all countries we serve there: China, Korea and Japan. Our latest software has been introduced into new models, ensuring continued sales.
“As our business model and strategy continues to bear more fruit we are confident that our efforts will continue to create company value,” said Tollstadius.
The U.S. market has started to recover, with sales 29 percent higher than the first quarter last year. We have returning customers already generating license revenues.
“Although sales will vary from one quarter to another, we have reason to believe that this is not a single event, but a reset of the sales level on an annualized basis. In Europe, our sales remain stable. We have a very solid customer base and more recently acquired customers have also started to generate stable business,” said Tollstadius.
Two new Products
ContextVision launched two new products during the The Radiological Society of America’s (RSNA) meeting in December.
“We already have customer contracts for both. This is indeed a very short lead-time and it demonstrates our capability to deliver new products that are well-suited for market needs,” said Tollstadius.
Our financial reporting has changed from January this year. The two business areas – medical imaging and digital pathology – are now being reported as segments. Research costs are included in the two business areas and no longer disclosed separately.
During the first quarter we finalized the reconstruction of the office facilities in Linköping to make room for growth, and we have had additional costs for R&D. Our total cost level is thereby 8 percent higher than first quarter last year. Due to strong sales, our cash position is very stable, with a 40,3 MSEK in cash at quarter’s end.
“In conclusion, our R&D strategies have been successfully implemented within both medical imaging and digital pathology and we are pleased that we continue to make good progress,” said Tollstadius.
For further information, please contact ContextVision’s CEO, Anita Tollstadius, cell: +46 70 337 30 26 or visit www.contextvision.com.
About ContextVision
ContextVision is a medical technology software company that specializes in image analysis 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. Its cutting-edge technology helps doctors accurately interpret medical images, a crucial foundation for better diagnosis and treatment.
As an industry pioneer for more than 30 years, ContextVision is significantly investing in R&D to develop new applications of the latest artificial intelligence technologies and expanding into the growing digital pathology market. The release of its first product, supporting the diagnosis of prostate cancer, is planned in the near future.
The company is based in Sweden, with local representation in the U.S., Russia, Japan, China and Korea. ContextVision is listed on the Oslo Stock Exchange under the ticker COV. For more information please visit www.contextvision.com.
