EOS imaging Reports Full Year 2018 Results and First Quarter 2019 Revenue

Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

Regulatory News:

EOS imaging (Paris:EOSI) (Euronext, FR0011191766 – EOSI), the pioneer of orthopedic medical imaging 2D/3D, today announces consolidated results for the full year ended December 31, 2018, and its first quarter 2019 consolidated revenues as adopted by the Board of Directors on April 16, 2019.


  • +6% Gross Margin growth at ‚¬17.8 million vs. ‚¬16.8 million as of December 31, 2017
    • 490bp Gross Margin progression up to 50.2% of sales (vs. 45.3% over FY 2017), driven by positive trend in average selling price
  • Total net cash position of ‚¬19.7 million as of December 31, 2018, following convertible notes issuance and Fosun Pharmaceutical AG equity financing
  • Growing adoption of EOS in the US up to 100% of Top 10 rated1 Neurosurgical Hospitals, 100% of the Top 10 rated Pediatric Orthopedic hospitals and 90% of the Top 10 rated Orthopedic Hospitals
  • Global install base exceeded 300 EOS systems by the end of year fueling maintenance revenues
  • Global maturing opportunity pipeline

Mike Lobinsky, CEO of EOS imaging, commented: 2018 has been a year of many accomplishments for EOS imaging. Despite the year end commercial slowdown, we are proud to reach the 300th-installed-EOS mark and see this as an important milestone for the Company. By year-end 2018, we opened three new markets (Mexico, Spain and Portugal) and are excited to see the continued global adoption of our systems in leading hospitals and imaging centers as well as new adoption in private spine and orthopedic clinics in the U.S.; Our growing installed base had also a very positive impact on recurring revenues which increased by +26% over prior year. We are also pleased to see the increasing interest in our Advanced Orthopedic Solutions offering which is continuing to differentiate EOS imaging beyond our core diagnostic imaging system.


  • Consolidated revenues over FY 2018: ‚¬35.4 millions

EOS imaging recorded annual revenues of ‚¬35.4 million, compared to ‚¬37.1 million in full year 2017.

The Company sold 64 EOS systems in 2018. The worldwide installed base grew to over 300 EOS systems by the end of 2018.

Recurring revenues grew +26% to ‚¬8.9 million notably driven by a strong +33% increase of maintenance contract revenues from the rapidly growing global installed base. Recurring revenues in 2018 represented 25% of total sales, compared to 19% in 2017.

EOS imaging continued R&D investments led to revenues from public grants and tax credit amounting to ‚¬1.4 million.

  • Gross Margin: ‚¬17.8 million

Gross Margin increased by +6% to ‚¬17.8 million, representing 50.2% of sales, compared to 45.3% in 2017. This improvement was driven up by the combination of an increase in average selling prices and an improvement in production and maintenance costs.

  • Financial Results

Operating expenses including cost of share-based payments for the full year 2018 totaled ‚¬27.4 million, up 13% compared to the prior year.

The increase in Sales, Marketing and Clinical costs was driven by the US sales team reorganization initiated in H2 2017 and taking a full year impact in 2018.

Administrative costs have increased by ‚¬2.2 million, of which ‚¬1 million one-time costs mostly relating to consulting in support to the refinancing and personnel transitions.

Operating loss for the full year 2018 was ‚¬8.2 million compared with an operating loss of ‚¬5.8 million in 2017.

Net financial expenses for the full year 2018 totaled ‚¬(4.8) million, compared to ‚¬(2.0) million in 2017, mainly reflecting in the one-time expense for the early reimbursement of the company venture debt in May 2018.

Net loss for the full year 2018 was ‚¬13.0 million compared with a net loss of ‚¬7.8 million in the previous year.

  • Summarized Consolidated Income Statement

Income Statement / Unaudited2 / ‚¬ millions As of December 31

      FY 2018       FY 2017
Revenues 35.39 37.09
Other income       1.43       1.72
Total Revenues       36.82       38.81
Direct cost of sales (17.62) (20.29)
Gross margin 17.77 16.80
as a % of revenue       50.2%       45.3%
Indirect cost of production and services (3.87) (4.12)
Research & Development (4.43) (4.10)
Sales , Marketing and Clinical (10.87) (9.81)
Regulatory expenses (0.76) (0.74)
Administrative costs       (6.76)       (4.61)
Total operating expenses excluding cost of goods and share-based payments       (26.68)       (23.38)
Share-based payments       (0.77)       (0.91)
Total operating expenses       (27.45)       (24.29)
Operating income/(loss)       (8.24)       (5.77)
Net financial income/(expense)       (4.79)       (2.02)
Net income/(loss)       (13.04)       (7.79)

As of December 31, 2018


As of December 31, 2017

Net cash position       19.72       6.93
  • Net cash position at December 31, 2018: ‚¬19.7 million

As of December 31, 2018, EOS imagings net cash totaled ‚¬19.7 million, compared with ‚¬6.9 million at December 31, 2017. This variation results from ‚¬(8.7) million net cash flow from operations, ‚¬(4.1) million net cash flow from investments, and ‚¬25.5 million net cash flow from financing.

Over 2018, EOS imaging undertook two significant financing operations: the issuance of convertible notes allowing the full repayment of the Companys venture debt and a ‚¬15.1 million equity financing from Fosun Pharmaceuticals AG.


  • Sales Terms and Conditions for EOS systems modified to match common U.S. practice, impacting revenue recognition timing
  • Solid business performance including:
    • 15 EOS equipment orders received in Q1 2019 to be compared to a particularly high Q1 2018 with 19 orders received
    • Continuous positive trend in EOS equipments average selling price
    • +27% growth in recurring revenues compared to Q1 2018, driven by maintenance contracts revenue fuelled by the growing installed base

Mike Lobinsky, CEO of EOS imaging, commented: With 15 EOS orders received over the 1st quarter of 2019 and +27% growth in recurring revenues, we are in line with our expectations. Notably, we experimented a positive trend in our two main markets, EMEA and North America, offset by an anticipated decrease in Asia Pacific following the Q4 distributor change in China. We have decided to implement new sales agreements to better meet customer expectations and evolving industry practices, particularly in the US. This strong decision will have short-term impacts on equipment sales revenue recognition, but creates better conditions for commercial development and cash management. We are highly confident in our ability to develop EOS imaging across our three major markets in 2019 and beyond.

  • EOS systems general sales term evolution impacting timing of revenue recognition

From 2019, EOS systems direct sales agreements include a transfer of property at the time of acceptance, ie. the signature of the Statement of Working Order commonly referred to as installation, time at which sale would be effective and revenue recorded.

Two additional advanced KPIs, equipment orders3 and order book4, will be used to provide the necessary visibility on business performance as well as a the ability to compare prior year performance.

This business driven decision was taken in order to make EOS equipments commercial model more consistent with both customer expectations and evolving industry practices, particularly in the US. Nonetheless, given the 3 to 12 month average delay between the shipment and the installation of EOS systems, 2019 revenues will be significantly impacted by this one-time change.

This change should be accompanied by enhancements to the management of supply chain due to shorter shipment to installation times, extension of our working capital and improvements to our receivables.

  • Q1 2019 equipment orders and total revenue by product lines

Equipment Orders and Order Book

Non-audited / Including forex impact5 / ‚¬ million

As of March 31

      Q1 2019       Q1 2018
Equipment Orders (over the period)       6.25      
Equipment Order Book (end of period)       6.20      

Non-audited / Including forex impact / ‚¬ million

As of March 31

      Q1 2019       Q1 2018
Equiments       0.05       7.56
Maintenance contracts       2.21       1.73
Consumables and services       0.32       0.26


      2.58       9.54

Total revenue for the first three month of 2019, according to the new general sales terms implemented, was ‚¬2.6 million.

Total equipment orders were ‚¬6.25 million, following a continuous positive trend in average selling price.

Total Q1 2019 recurring revenue was ‚¬2.5 million, including ‚¬2.2 million in maintenance revenue to be compared to ‚¬1.7 million in Q1 2018 (ie. +28% growth).

Total Q1 2019 revenue with the addition of the change in equipment order book value reached ‚¬8.8 million to be compared to ‚¬9.5 million in Q1 2018, ie. -8.0% decrease from a particularly high quarter.

  • Q1 2019 equipment orders and total revenue by geography

Non-audited / Including forex impact / ‚¬ million

As of March 31

      Q1 2019       Q1 2018
EMEA       1.26       3.53
APAC       0.17       2.21
NAM       1.15       3.81

Total Quarterly Revenues

      2.58       9.54

ABOUT EOS imaging

EOS imaging designs, develops and markets EOS, a major innovative medical imaging solution dedicated to osteoarticular pathologies and orthopaedics combining equipment and services targeting a $2B per year market opportunity. EOS imaging is currently present in 34 countries, including the United States under FDA agreement, Japan, China and the European Union under CE labelling, through approximately over 300 EOS installed representing around one million patient exams every year. Revenues were ‚¬35.4M in 2018.

For more information, please visit www.eos-imaging.com.

EOS imaging has been chosen to be included in the new EnterNext PEA-PME 150 index, composed of 150 French companies and listed on Euronext and Alternext markets in Paris.

EOS imaging is listed on Compartment C of Euronext Paris ISIN: FR0011191766 “ Ticker: EOSI

Next press release: Release of Q2 2018 sales in July 16, 2019

1 Source: US News “ 2018/2019 Best Hospitals National Rankings (August 2018) 2 Audit procedures have been performed, but audit reports have not being issued yet 3 Equipment Orders: Sum of EOS system orders recorded in order book over the period 4 Order Book: Accumulation of EOS system ordered but not installed for which revenue has not been recognized 5 Forex impact over Q1 2019: +‚¬0.08 million


EOS imaging
Valérie Worrall
Ph: (+33) 1 55 25
60 60
[email protected]

Relations (US)

Tram Bui / Emma Poalillo
The Ruth Group
(+1) 646-536-7008 / 7024
[email protected]

Relations (US)

Kirsten Thomas
The Ruth Group
Ph: (+1)
[email protected]