• Text size      
  • Send this article to a friend
  • Print this article

Growing demand for Daytona device sees Optos sales rise

RETINAL imaging firm Optos has secured $76 million (£46.1m) of new financing facilities and recorded a 10% rise in customers in the first three months of its new financial year.

MOMENTUM: In spite of a software blip during the launch phase Dunfermline-based Optos said the Daytona product sold strongly in the 2013 financial year.
MOMENTUM: In spite of a software blip during the launch phase Dunfermline-based Optos said the Daytona product sold strongly in the 2013 financial year.

The Fife business said its Daytona device, a lighter and more portable piece of technology than previous offerings, was the main factor behind the growth in customers.

Daytona sales were at 303 in the three months to the end of December, compared to 274 in the same period of 2012.

In spite of a software blip during the launch phase of Daytona the product sold strongly in the 2013 financial year and appears to have carried some of that momentum into the current one.

Optos said its global number of installed devices, including older models, is now at a record 6219 and up from the 5945 it reported were in place at the start of its financial year in October.

Revenue fell in the quarter to $36.4m, against $40.3m, which was attributed to lower leasing revenues and fewer opportunities to renew contracts with existing customers.

However, Optos had already given guidance quarterly sales would be down and yesterday confirmed it remains on course to hit full-year targets.

Roy Davis, chief executive of Optos, said: "There remains strong demand for our unique ultra-widefield capabilities and, in particular, for the Daytona product. We continue to see good growth in new customers, particularly within North America and Asia, which has translated into a 5% increase in our installed base, although the European market remains challenging."

Alongside its sales activities Optos, which manufactures its devices and has its headquarters in Dunfermline, agreed a new $30m credit package with Bank of Scotland which will run through to January 2017.

That replaces a debt facility which was scheduled to expire in September this year.

There was also a separate $46m deal with US-based Key Equipment Corp which will help Optos to provide asset financing to customers.

Net debt in the period rose by $300,000 since the end of September to stand at $39.7m.

Mr Davis said: "We are also pleased with the cash performance in the first quarter and the successful re-financing gives Optos committed facilities for the next three years."

Savvas Neophytou, at Panmure Gordon, upped pre-tax profit prediction from $15.7m to $17.2m while retaining a buy recommendation on the stock.

He said trading was "broadly in line" while other metrics such as Daytona sales and the installed base were "going in the right direction".

Julie Simmonds, at Canaccord Genuity, also kept a buy rating on the stock with a target price of 231p.

She said: "We believe Optos is now on a much more stable footing, with better visibility of revenues than in previous years.

"The momentum seen following commencement of Daytona sales in [the second half of 2012] has continued beyond the initial 12 months with interest in the product remaining high.

"We believe this demonstrates a long-term demand for the product. Optos continues to work on improving manufacturing margins, and remains on track for its year-end target."

In early trading shares were down by more than 4% but rebounded to close the day down 3.25p, or 1.6%, at 196.75p.

Optos was founded in 1992 by Douglas Anderson after his then five-year-old son lost sight in one eye when a retinal detachment was not diagnosed in time for treatment to take place.

Mr Anderson felt routine eye exams were uncomfortable for patients and doctors were unable to view the entire retina. He set out to develop a commercial product which could provide a widefield image of the retina.

The full commercial launch of the P200 device did not take place until 2000 with thousands of them subsequently installed in optometry labs around the world.

Optos floated on the London Stock Exchange in February 2006.

Contextual targeting label: 
Finance

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

207327