Modulight Corporation | Company Release | February 21, 2025 at 13:00:00 EET
This release is a summary of Modulight's financial statements bulletin 2024. The whole report is attached to this stock exchange release as a pdf file, and is also available on the Modulight website at https://modulight.com/reports-presentations/.
The figures in brackets refer to the corresponding period of the previous year. This financial statement bulletin is unaudited.
Highlights in October-December 2024
- The orderbook increased by EUR 2,970 thousand and increased for the fourth consecutive quarter.
- The operating cash flow was EUR 0.8 million (-1.8 million), improving by +145%.
- Net sales were EUR 1,431 (1,019) thousand.
- EBITDA was EUR -1,023 (-2,992) thousand.
- EBITDA margin was -71.5 (-293.6) % of net sales.
- Operating profit (EBIT) was EUR -2,204 (-5,060) thousand.
- Operating profit (EBIT) was EUR -154.0 (-496.5) % of net sales.
- Earnings per share were EUR -0.02 (-0.12).
Highlights in 2024
- PPT's business developed rapidly, especially in the last quarter of the year, and the number of hospitals using the company's product increased to 47 at the end of the year.
- The total number of product development projects was 30 (28) at the end of the year.
- Net sales were EUR 4,095 (4,025) thousand.
- EBITDA was EUR -4,836 (-8,539) thousand.
- EBITDA margin was -118.1 (-212.1) % of net sales.
- Operating result (EBIT) was EUR -8,337 (-12,132) thousand.
- Operating result (EBIT) margin was -203.6 (-301.4) % of net sales.
- Earnings per share were EUR -0.15 (-0.28).
- The company's Board of Directors proposes that no dividend be paid for the financial year 2024.
Key figures
| Group EUR 1,000 unless otherwise noted | 10-12/2024 | 10-12/2023 | 7-12/2024 | 7-12/2023 | 1-12/2024 | 1-12/2023 1) |
| Revenue | 1,431 | 1,019 | 2,071 | 1,425 | 4,095 | 4,025 |
| EBITDA | -1,023 | -2,992 | -2,301 | -5,529 | -4,836 | -8,539 |
| EBITDA-% | -71.5% | -293.6% | -111.1% | -388.0% | -118.1% | -212.1% |
| Operating result (EBIT) | -2,204 | -5,060 | -4,312 | -8,134 | -8,337 | -12,132 |
| Operating result (EBIT) -% | -154.0% | -496.5% | -208.2% | -570.8% | -203.6% | -301.4% |
| Earnings for the period | -659 | -4,967 | -2,627 | -8,030 | -6,447 | -11,861 |
| Earnings per share (EPS, EUR) | -0.02 | -0.12 | -0.06 | -0.19 | -0.15 | -0.28 |
| Acquisition of fixed and intangible assets | -1,490 | -949 | -2,362 | -2,990 | -4,900 | -9,735 |
| Free cash flow from operating activities | -2,513 | -3,942 | -4,663 | -8,520 | -9,736 | -18,274 |
| Cash and cash equivalents 2) | 17,407 | 25,131 | 17,407 | 25,131 | 17,407 | 25,131 |
| Net debt 2) | -12,864 | -18,586 | -12,864 | -18,586 | -12,864 | -18,586 |
| Gearing ratio 2) | -26.1% | -33.4% | -26.1% | -33.4% | -26.1% | -33.4% |
| Equity ratio 2) | 87.5% | 87.1% | 87.3% | 87.1% | 87.5% | 87.1% |
| Headcount (FTE) 2) | 66 | 70 | 66 | 70 | 66 | 70 |
1) Audited
2) Figure refers to the end of the review period
Outlook for 2025
Most of Modulight's customer projects are various types in the early stages of development. These projects are focused on commercializing Modulight's own products. In line with its strategy, Modulight is also transitioning from device delivery-based payments to a new treatment-session-based payment model (PPT business model). The progress of individual projects is difficult to predict, and macroeconomic and geopolitical uncertainty continue to impact market development. As a result, forecasting revenue is challenging, and Modulight does not provide guidance on revenue or profitability for the year 2025.
Seppo Orsila, CEO
The PPT business progressed rapidly with existing customers, revenue grew, and orders accumulated faster than before. Our profitability continued to improve despite increased investments in product development. Certain customer projects advanced, and we received larger pre-production orders than before. Some customer relationships also progressed faster than previously expected. Operating cash flow improved by 145% and was EUR 0.8 million (-1.8) in the fourth quarter, even though we increased product development as well as investments in sales and marketing.
Revenue in the fourth quarter was EUR 1.4 million, which was 40% more than in the corresponding period of 2023 and 123% more than in the previous quarter. Revenue development was affected by our strategic transition to the PPT business model and delays in prototype deliveries. We received more new orders than before, and in fact, this happened every quarter last year. The order backlog continued to improve throughout the year, accelerating in the second half, and this also continued at a higher level in early 2025 than last year. The projects in the order backlog are expected to generate revenue primarily in 2025. Although revenue from the PPT model is still low, the number of care facilities using our cloud-connected products has grown from about 10 at the beginning of last year to around 50 now. This growth has mostly occurred during the previous quarter. We expect growth to continue at the same or a faster pace in 2025.
Our extensive investment program has been completed, and the associated costs have decreased, which is reflected in improved profitability, even as we continue to develop our own product. Measured by EBITDA, profitability improved by 66% in the last quarter, reaching EUR -1.0 million (-3.0). Our total operating expenses have decreased by 28% since the beginning of the year compared to the reference period, despite further increasing product development as well as sales and marketing efforts. In particular, the efficiency of marketing and product development has improved. Operating cash flow improved by 145% and was EUR 0.8 million (-1.8) in the fourth quarter. The improvement in operating cash flow is also clearly visible over the first three quarters, during which it improved by 70% to EUR -1.6 million (-5.4).
The development of our business models is beginning to show in a more stable order intake, as well as in the growth rate of our install base and customer feedback. We are especially pleased with the decision of a significant U.S. managed care organization to replace all competitor devices with our PPT devices. Our role as a partner to customers has grown in terms of both the scope of our operations and the relevance of our solution. Certain customers also launched products that are partially based exclusively on our products.
Phase three clinical trials are at our focus, and certain customers want to increase the number of devices installed in the field. If these plans realize in the first half of the year, we will install a record number of new devices, and the use of our own PPT product will increase. Device base growth is particularly seen in those indications where our profitability is above average. Positive customer feedback has been a significant factor in the growth of our product and our role as a partner in many customer relationships.
The goal of our projects is the commercialization of our own products. Our product development pipeline remained at 30 projects. These projects focus on the commercialization of our product platform across multiple indications and drugs. During this quarter, we also acquired new customers, but our collaboration with them is not yet advanced enough to report them as separate projects. We have also allocated additional resources to projects with existing customers as they progress toward commercialization. The amount of positive customer feedback has continued to grow, and we are pleased that it comes particularly from projects that are closer to commercialization.
Investments in our factory, such as production capacity and the biolaboratory, have strengthened our competitiveness. Additionally, the synergies of our platform solution are increasingly appearing as a positive competitive factor and a differentiating offering. This has concretely led, for example, to increased purchases from long-term customers. While the main focus has been on commercialization projects, we have also continued to develop our capabilities, and we are particularly proud of the development of our laser platform's micro-optics and mechanics as a competitive factor. These have recently opened up new opportunities for our products. Our broad expertise and vertical integration enable the creation of better products in a shorter time and improve the reliability of our customers' supply chains in multiple ways.
In the current global situation, our own production facility is one of our key competitive strengths. We believe this has also positively influenced the continued expansion of our customer base. We monitor changes in the global economy and geopolitics, but so far, we have not seen any reason for concern. We have interesting customers, and their number is growing, but we also have a strong cash position and the ability to respond quickly to market opportunities, for example, by increasing our product development. We will continue to focus on growth strategy initiatives such as expanding our PPT model and advancing pipeline projects to commercialize our own products. We believe that our strategic actions and strengths will contribute to our business returning to strong and profitable growth within our strategy period ending in late 2025.
Board of Directors' proposal for the treatment of distributable funds
The distributable equity of the Group's parent company Modulight Oyj on 31 December 2024 was EUR 38,359 (46,960) thousand. The company's Board of Directors proposes to the Annual General Meeting that no dividend be distributed for the 2024 financial year.
Financial reporting in 2025
In 2025, Modulight will publish the following financial reports:
- Interim report January-March 2025: 25 April 2025
- Half-year financial report January-June 2025: 22 August 2025
- Interim report January-September 2025: 24 October 2025
Webcast
Modulight's CEO Seppo Orsila will present the result in an English-language webcast, which will be held on February 21, 2025, at 2:30 p.m. EET. The broadcast can be followed at https://modulight.zoom.us/webinar/register/WN_jFEB0ECAQN-l2ogBIam0GA. Questions are to be submitted in writing in the webcast portal. CFO Anca Guina will also be 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/.
For further information, please contact:
CEO Seppo Orsila, m. +358 40 830 4671
IR Ulla Haapanen, m. +358 40 830 4676
Email: ir@modulight.com
Certified adviser: Sisu Partners Oy, m. +358 40 555 4727
modulight.com
@modulight
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, pharmaceutical companies, and well-known cancer centers and universities. Modulight was founded in 2000 and is headquartered in Tampere, Finland.
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