On April 22nd, ContextVision published its financial results for Q1 2021 accompanied by a video presentation from the companies CEO, Fredrick Palm. These results show that sales revenue was significantly lower during the first quarter, relative to Q1 2020, although last year was an exceptionally strong quarter due to the company signing new customer contracts combined with high bulk orders. Quarterly sales reached 20.3m SEK, compared with 29.2m SEK in Q1 2020, a decrease of approximately -30% year-on-year. For perspective, sales grew by almost +40% in Q1 2020, compared with Q1 2019. On a trailing 12-month basis, year-on-year sales growth turned negative during the quarter for the first time since the pandemic began.
All sales during the first quarter were generated from the medical imaging business unit and were external sales to customers located outside of Sweden. The sales performance during the quarter continued to be negatively impacted by the Coronavirus pandemic as well as a currency headwind of approximately -8% due to changes in the Euro, US dollar and Japanese Yen. From a geographical perspective, sales were lower across all major regions. The Q1 2021 sales data is not comparable as reporting for two customers were shifted from Europe to Asia during the quarter. From a product segment perspective, the sales contraction was driven by lower sales across all product groups, apart from 3D Ultrasound, which continued to grow.
The company continued to make encouraging progress within digital pathology and the company’s first product INIFY Prostate Screening, a decision support tool for the diagnosis of prostate cancer. The company was originally granted CE mark status for this solution during June-20 and although the pandemic has “slowed sales slightly” the outlook appears to be positive. CEO, Fredrick Palm commented: “Dr Filippo Fraggetta – one of the leading pathologists in Europe and instrumental in the development of the product – confirms the preliminary results from the ongoing clinical study, indicating that using INIFY Prostate decreases variance between pathologists will benefit referrals and patients in the longer term. This is really great news”. In addition to these promising clinical study results, the company saw the addition of key reference centres as installations were carried out at prominent pathology laboratories in Spain and France. In parallel, the company proceeded with the development of its next-generation product for prostate, as well as research within colorectal cancer.