Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Mentice AB (OSTO:MNTC, Financial) reported a positive operational cash flow for the year-to-date, despite a negative cash flow for the quarter.
- The company launched two new products in the neurovascular area, which have been well-received and are expected to drive future growth.
- Mentice AB (OSTO:MNTC) experienced a strong performance in the APAC region, with a 4% increase in sales compared to last year.
- The hospital business segment showed significant growth, with a 30% increase compared to the same period last year.
- The company has a strong market presence, being the dominant simulation vendor at major medical conferences, which enhances its visibility and credibility in the industry.
Negative Points
- Mentice AB (OSTO:MNTC) reported a decline in net sales by 10% compared to the third quarter of last year.
- The company's EBITDA for the quarter was negative, at minus SEK 6.2 million, reflecting financial challenges.
- There was a decline in the order book by 9%, indicating potential future revenue challenges.
- The Americas and EMEA regions underperformed, with a 19% decline in sales in the EMEA region compared to last year.
- The variability in business performance, particularly in the MDI segment, has impacted the company's financial results.
Q & A Highlights
Q: Can you describe the two major orders achieved after the end of the quarter, including their delivery plans and areas?
A: Unfortunately, we can't disclose the company names, but the first order is in the electrophysiology area, resulting from a global contract with a leading company. The second order is in the CRM space, highlighting the importance of our solutions. Both orders are significant and mark the start of further expansion.
Q: Are these orders related to the new software suite you launched?
A: No, the first order is in electrophysiology and the second in cardiac rhythm management, both heart-related. The new software suite is focused on the brain.
Q: Will the new software suite be sold to both existing and new clients?
A: Yes, we will convert existing clients to the new platform and upgrade hospital installations in the Neurospace. The suite is expected to attract new clients and use cases, particularly in the hospital market.
Q: How has the development of Ankyras progressed during the quarter?
A: We gained a new significant device client and existing clients see value in the market. The number of cases is increasing, and we are working on updated FDA regulations and new functionalities. We are present at major neuro Congresses, gaining traction.
Q: Can you elaborate on the order intake for the quarter and its drivers in different segments?
A: The hospital segment had a strong quarter, but the device industry, particularly in the US, saw softer order intake. There were no major orders in Q3, partly due to the summer vacation period in Europe and the US.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
