Today, Mentice AB (STO: MNTC) publishes preliminary (unaudited) net sales and order intake figures for January–December 2019. The net sales figures are roughly in line with the revised full year forecast in the Q3 interim report, (with a 4-5% decrease in net sales), while order intake is 20% lower compared to last year. To address the current lag in order intake and improve overall sales performance, CEO Göran Malmberg is assuming direct responsibility for global sales activities.

Fourth quarter 2019

• Preliminary net sales amounted to 60 (65) MSEK, a significant improvement over prior quarter (up 100%) and amounting to 40% of full year revenues in line with prior year. (unaudited)
• Preliminary order intake amounted to 54 (62) MSEK, 120% over prior quarter order intake and amounting to 40% of full year orders. (unaudited)

January-December 2019

• Preliminary net sales amounted to 150 (157) MSEK (unaudited).
• Preliminary order intake amounted to 139 (175) MSEK (unaudited).

CEO comment on the preliminary figures for January–December 2019

“Based on our preliminary Q4 figures we expect the full year of 2019 to end 4-5% below 2018 in net sales, and 20% below last year in order intake.

We can report a strong fourth quarter allowing us to arrive at net results roughly in line with our revised revenue forecast in the Q3 report, but are obviously disappointed with the fact that a substantial amount of the total order value expected for Q4 2019 was moved into 2020. As previously stated, the main factor behind this outcome is the performance of our medical device industry segment. Close to 35 MSEK worth of orders expected to be closed in 2019 in this segment in support per the end of November Q3 earnings report projections was deferred into 2020 for various reasons. All these orders are still active, and Mentice is still expected to receive these orders during 2020.

We are continuing to see strong performance in other segments. Our healthcare systems segment is expected to show a 20% improvement in net sales in 2019, and net sales from our strategic alliances (Siemens, Philips, Laerdal) segment is up over 50%. More details on this will be disclosed in the full year end report.

In the fourth quarter, we were able to sign two agreements in the healthcare systems segment worth mentioning in this context:

-A long-term engagement with German Society of Radiology (Deutsche Gesellschaft für Interventionelle Radiologie in der Deutschen Gesellschaft für Radiologie, DeGIR), covering Mentice systems during a multi-year agreement with a total order value of 4.6 MSEK. DeGIR will use Mentice equipment for training and eventually certification of junior and practicing interventional radiologists.

- An order from Union Capital Asset Management* (UCAP) which entity resells and arranges financing for Mentice systems to key healthcare systems in greater China and the South East Asia region most of which are controlled by or connected to minority shareholders in Mentice with a total order value of 11.8 MSEK.

CEO comment on actions taken to improve sales performance
“We are obviously not pleased with the underperformance of our medical device systems segment in 2019. Based on our assessment of the current situation we are now implementing corrective actions. With immediate effect I will assume direct responsibility for our global sales with our 3 sales leaders reporting to me. Matar Dakhil, previously our head of Global Sales, will narrow his focus to medical device manufacturer’s in order to ensure reversion to historic growth trends while Kjell Asserlind, leading Health systems Sales and Martin Harris, leading sales for Strategic Alliances will drive forward the strong growth in our segments for hospital and strategic alliances (such as Siemens, Philips and Laerdal) respectively.

(*) Mr. Lawrence D. Howell, Chairman of Mentice is a minority shareholder in UCAP.

Publication of the year-end report

Mentice’s year-end report for 2019 will be published on February 27, 2020 at 08:30 CET.

For further information, please contact:
Göran Malmberg, CEO, Mentice
Email: goran.malmberg@mentice.com

Tel US: +1 (312) 860 5610

Tel Sweden: +46 (0) 703 09 22 22

This information is information that Mentice AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person on January 7, 2020 22:30 CET.  

Market place: Nasdaq First North Premier, Stockholm | Ticker symbol: MNTC
Certified Adviser: FNCA Sweden AB, tel +46 8 528 00 399 e-post info@fnca.se

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