EOS imaging Reports Half-Year 2019 Revenues

Regulatory News:

EOS imaging (Paris:EOSI) (Euronext, FR0011191766 – EOSI) a leader in 2D/3D orthopedic medical imaging and software solutions for 3D anatomical modeling and surgical planning today announces preliminary consolidated revenues for the half year ending June 30, 2019.

SECOND QUARTER & FIRST SEMESTER 2019 HIGHLIGHTS

• €3.4 million total Revenues in Q2 2019, of which €2.7 million from Maintenance, Consumables, and Services, and €0.7 million from Equipment sales, which are impacted by the shift in the commercial contracts and sales cycle. Total Revenues for the first half of the year 2019 were €6.0 million.
• +16% increase in commercial performance (equipment orders + recurring revenues) in Q2 2019: revived momentum, led by over 50% growth in North America and over 30% growth in EMEA;
• +3% global commercial performance year to date June 2019: NAM: +26%; EMEA : +16%; offset by a decline in APAC against a high H1 2018 comparable base;
• +7% in ASP’s over the first half 2019 driven primarily by North America;
• +33% in recurring revenues as of H1 2019 vs H1 2018, driven by Maintenance revenues from a growing install base, bringing total recurring revenues to €5.2 million for the period.

Mike Lobinsky, CEO of EOS imaging, commented: “The commercial traction and the positive momentum observed during the second quarter of 2019, especially in North America and EMEA, show that the investments made in our regional commercial teams last year are beginning to deliver. With 30 EOS orders received over the 1^st half year 2019, a steady growth of our average selling price and +33% growth in recurring revenues, we are in line with our expectations through mid-year. The enhancements we made in our Advanced Orthopedic Solutions portfolio in H1, including the launch of EOSlink, further strengthen our evolving portfolio of orthopedic hardware, software, and service solutions. These ongoing evolutions along with our growing and maturing EOS system opportunity pipeline make us confident in the future.”

As a reminder, EOS imaging has modified its commercial contracts and sales cycle, to meet customer expectations. With a delay of 3 to 12 months between equipment orders and installations, the alignment of equipment delivery, installation and invoicing will impact revenues in 2019, but create better conditions for commercial development and cash management. Equipment orders are reported to provide advanced visibility and comparability on commercial performance vs. prior years.