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Beskrivning

LandFinland
ListaFirst North Finland
SektorHälsovård
IndustriMedicinteknik
Modulight är verksamma inom teknikbranschen. Bolaget designar, marknadsför och producerar biomedicinska laserprodukter som används inom onkologi, genetik och oftalmologi. Kunderna består primärt av sjukhus och företagskunder verksamma inom medicinteknik. Utöver huvudverksamheten erbjuds även diverse mervärdestjänster. Störst verksamhet återfinns inom Europa.

Kalender

2022-08-19 Kvartalsrapport 2022-Q2
2022-05-03 Ordinarie utdelning MODU 0.00 EUR
2022-05-02 Årsstämma 2022

Prenumeration

2022-03-15 08:15:00

MODULIGHT CORPORATION, COMPANY RELEASE, FINANCIAL STATEMENTS BULLETIN (AUDITED) MARCH 15, 2022 AT 09.15 A.M. EET

This release is a summary of Modulight's 2021 financial statements bulletin. The bulletin and the annual report containing the actual financial statements are attached to this stock exchange release in their entirety as a pdf file. The report is also available on the Modulight website at https://www.modulight.com/reports-presentations/

Highlights in 2021

  • Modulight launched a record number (8) of new projects with significant customers. In total, the company now has 24 ongoing projects which have significant commercial potential and which are expected to form the basis for the company’s targeted extensive commercial roll-outs. The development and expansion of the project portfolio is the most important internal measure of the company's success.
  • Profitability was reduced by a significant write-off of trade receivables after the review period and listing-related expenses. Excluding non-recurring items, full-year adjusted operating profit (EBIT) was 36 (47) percent of net sales and adjusted EBITDA was 49 (58) percent of net sales.
  • Net sales were affected by delays in the schedules of certain projects caused by the acceleration of the corona pandemic
  • Net sales 9.1 million EUR (10.1)
  • EBITDA was 0.46 million EUR (5.8)
  • Operating result (EBIT) was -0.75 million EUR (4.7)
  • Operating result margin (EBIT) was -8 % of net sales (47 %)

Highlights July-December 2021 (2H)

  • Net sales were 4.5 million EUR (6.4)
  • EBITDA was -2.7 million EUR (3.9)
  • Operating result (EBIT) was -3.4 million EUR (3.3)
  • Operating result margin (EBIT) was -74 % of net sales (52 %)
  • Excluding non-recurring items, the adjusted EBIT-% 14 % (52 %) and adjusted EBITDA 29 % (60 %)
  • The acceleration of the corona pandemic delayed both commercial and medical cooperation with customers, research institutes and hospitals

(Comparative figures in parentheses refer to the corresponding period of the previous year, unless otherwise stated)

Key figures

(1,000 EUR)7-12/20217-12/20201-12/20211-12/202010-12/202110-12/2020
Net sales4,5116,3909,07110,0622,3744,399
EBITDA-2,6903,8624615,787-3,7152,743
EBITDA-%-59.6 %60.4 %5.1 %57.5 %-156.5 %62.4 %
Operating result-3,3513,347-7534,712-4,0672,508
Operating result %-74.3 %52.4 %-8.3 %46.8 %-171.3 %57 %
Earnings from the period-7,0762,655-5,0613,732-4,2342,017
Earnings per share
(EPS, eur)
-0.190.09-0.150.12-0.10.07
Acquisition & scrapping of fixed and intangible assets6,4281,3849,6172,0686,119-235
Free cash from operating activities-9,1182,479-9,1563,719-9,8342,508
Cash & cash equivalents (at the end of the period)62,9781,78462,9781,78462,9781,784
Net debt-53,4153,924-53,4153,924-53,4153,924
Gearing ratio-70.1 %41.1 %-70.1 %41.1 %-70.1 %41.1 %
Equity ratio87.0 %48.6 %87.0 %48.6 %87 %48.6 %
Staff at the end of the period (FTE)523952395239

Events after the reporting period

Write-off of trade receivables
The pandemic has had a significant impact on the financing of some of our customers, and thus on their ability to pay. Due to the increased financial risk of these customers, the company has recorded a write-off of trade receivables of EUR 4,000 thousand.

Although the write-off had a significant impact on last year's profitability, it does not reduce the value of Modulight's technology or reduce the longer-term potential of those projects. No projects have been completed, and the work done on written-off receivables supports the development of our technology and production capabilities.

Seppo Orsila, CEO

Modulight initiated a record number of new projects during 2021, but operating profit was weakened by a significant write-off of trade receivables after the review period, which made our operating profit negative for the first time in more than 10 years. Our operating profitability remained very strong and excluding write-offs and non-recurring items related to listing, operating profit was EUR 3.2 (4.7) million, corresponding to 35.8 % (49.2 %) of net sales.

Our net sales decreased to EUR 9.1 (10.1) million. The decline was driven by the effects of the escalating coronary pandemic during the fourth quarter. Modulight’s opportunities to meet customers and work with them in hospitals and research facilities on site were limited towards the end of the year, delaying some of the company’s ongoing research and development projects. The pandemic also further slowed down government action.

Despite this, I am pleased with our performance. A more important measure of our success than short-term revenue is the development of our product development pipeline, which continued to be very strong. In 2021, we launched eight new projects with significant clients. At the same time, we have successfully continued our work to provide new treatments for example for glioblastoma (an aggressive form of brain cancer), eye melanoma, lung cancer, and bladder cancer. There is an urgent need for new, more effective treatments for all of these cancers.

Modulight aims to improve people's lives with our laser and semiconductor technology. We have not identified any other companies with similar multidisciplinary expertise in medicine and laser technology. Our technology platforms are highly versatile and there are significant synergies between our product development projects. The same hardware platforms and analytics can be utilized with different clients and in different cancer treatments. Increasingly, we are also seeing our competing customers choose both of our solutions.

We have a clear business goal. We are preparing for the wider commercialization of our technology and our goal is to advance the widespread adoption of our products with our three customers by the end of 2023. At the same time, we will continue to expand our product development portfolio, as our technology can be utilized in a number of high value-added solutions in addition to the life sciences, such as genomics, digital printing and quantum computing. We have made important progress with our photodynamic laser therapy (PDT) solution in collaboration with a major pharmaceutical company listed on the New York Stock Exchange (NYSE). In connection with this project, we have now agreed with the European (CE) and US (FDA) authorities on the audits to be carried out in 2022.

Before our projects move into the commercial phase, a significant portion of our company's revenue comes from research and development projects, and revenue recognition depends on the achievement of milestones in individual projects that were more affected by our interest rate pandemic towards the end of the year. As we emphasized in our business review published in October, due to the relatively large size of the projects, the company's quarterly results may fluctuate significantly, both positively and negatively, in the short to medium term.

Our company's receivables are also subject to counterparty risks, which we have described in connection with our listing. We work with large companies and payment terms are agreed on a customer-by-customer basis. Prolonged limited travel and increased geopolitical risks caused by the corona pandemic have had a significant impact on the financing and thus the solvency of some customers. Due to the increased financial risk of customers, the company has written off part of its receivables. While the write-off had a significant impact on last year’s profitability, it does not reduce the value of our technology nor the longer-term potential of those projects. No projects have been discontinued, and the work done on written-off receivables supports the development of our technology and production capabilities.

In 2022, we will continue our work to move towards the commercialization phase. The implementation of key areas of our growth strategy has progressed according to plan. At the same time, we have improved the competitiveness of our technology and made good progress with our investment program launched in 2019 and expanded last year to increase our capacity. I am also pleased with how we have consistently succeeded in attracting new experts to our team for all functions, but especially for product development. This tells about Modulight's good reputation in the industry. Based on the customer feedback we receive, our customers also have strong confidence in our technology.

Despite our progress, it is important to emphasize the significant uncertainty associated with each intermediate stage, especially for life sciences projects. As our business progresses to the next stages, this variance is expected to decrease, but in the short term, the risks from the corona pandemic and geopolitics are significant. Our extensive project portfolio will continue to be our most important means of reducing these risks.

Board of Directors' proposal for the distribution of distributable funds

The distributable equity of the Group's parent company Modulight Corporation on December 31, 2021 is EUR 70,654 (4,929) thousand. The company's Board of Directors proposes to the Annual General Meeting that no dividend be distributed for the 2021 financial year.

Events after the end of the financial year

Write-off of trade receivables
The pandemic has had a significant impact on the financing of some of our customers, and thus on their ability to pay. Due to the increased financial risk of these customers, the company has recorded a write-off of trade receivables of EUR 4,000 thousand.

Although the write-off had a significant impact on last year's profitability, it does not reduce the value of Modulight's technology or reduce the longer-term potential of those projects. No projects have been completed, and the work done on written-off receivables supports the development of our technology and production capabilities.

Annual General Meeting

The Annual General Meeting is scheduled to be held on May 2, 2022. Modulight's Board of Directors will convene the Annual General Meeting separately at a later date

Financial reporting

  • 1Q22 business review (1–3/2022): 28.4.2022
  • 2Q22 business review (1–6/2022): 19.8.2022
  • 1H22 semi-annual report (1–6/2022): 19.8.2022
  • 3Q22 business review (1–9/2022): 20.10.2022

Webcast

Modulight's CEO Seppo Orsila will present the result in an English-language webcast, which will be held on March 15, 2022 at 10:30 am. The broadcast can be followed at https://modulight.videosync.fi/2021-q4-results. Questions are requested to be submitted in writing on the webcast portal. CFO Anca Guina is also present to answer questions.

Presentation materials will be available before the start of the event on the company’s website at www.modulight.com/reports-presentations/.

Tampere, March 15, 2022
Board of Directors
Modulight Oyj

More information:

CEO: Seppo Orsila, m. +358 40 830 4671
Investor relations: Ulla Haapanen, m. +358 40 830 4676
Email: ir@modulight.com

Certified advisor: Danske Bank A/S, Finnish branch, +358 40 414 5358

www.modulight.com
Twitter: @modulight, @orsila

Modulight in brief

Modulight Corporation is a biomedical laser company that designs and manufactures products for oncology, ophthalmology and genetics. The company also provides solutions for selected high value-add applications including quantum computing and digital press. The company’s products include medical devices, subsystems, software, cloud services and specialized semiconductors. Modulight's products are used worldwide by many Fortune 500 companies, international pharmaceutical companies, and well-known cancer centers and universities. Modulight was founded in 2000 and is headquartered in Tampere, Finland.