OpSens (TSE: OPS), a manufacturer of fiber optic sensors offering solutions for interventional cardiology, reported lower sales and swung from a profit to a loss in the first quarter, as COVID-19 continued to impact the business.
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Sales & Earnings
Consolidated sales came in at C$8.1 million in Q1 2022, a decrease of 3% from C$8.3 million in Q1 2021. Sales were negatively impacted by C$0.4 million due to unfavorable exchange rates and the continued impacts of COVID on the industry.
Sales of coronary artery disease products were C$4.9 million in the three months ended November 30, down 7% from C$5.3 million in the same quarter a year ago. Sales of optical medical systems, including the company’s partnership for ventricular assist device sensors, amounted to C$2.4 million, up from C$2 million in the prior-year quarter. Industrial sales decreased by C$0.3 million to C$0.7 million.
Meanwhile, net loss amounted to C$2.1 million in the first quarter of 2022 compared with a net income of C$0.6 million a year ago.
Management Commentary
OpSens president and CEO Louis Laflamme said, “The first quarter remained challenging due to the ongoing impact of the pandemic. We remain optimistic about our opportunity to gain market share and adoption as we invest in commercial infrastructure. Importantly, our product development pathway for our new SavvyWire remains on track following the successful completion of our clinical human study and submission to the FDA and Health Canada for regulatory clearance. We look forward to the agencies review of our applications and will continue to prepare our organization for a successful product launch, upon regulatory clearance.”
Wall Street’s Take
Ten days ago, RBC Capital analyst Douglas Miehm maintained a Buy rating on OPS with a C$4 price target. This implies 50% upside potential.
Overall, consensus among Wall Street analysts is that OPS is a Strong Buy based on three Buys. The average OpSens price target of C$5 implies 96.1% upside potential to current levels.
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