Intelligent Ultrasound (AIM:MED) said it expects adjusted EBITDA loss to be flat year-on-year and that it has continued to meet all internal development milestones for its new AI-based image analysis software for the six months to 30 June 2020, despite COVID-19 restrictions.
The group plans to bring its range of AI-based clinical software products to market and said it remains on target to achieve its first AI related revenues in 2021, as originally planned, despite restricted access to doctors and trial patients and a delivery delay.
The group said it is also in discussions with OEMs for a second ScanNav AI software agreement and plans to submit its first regulatory filing for te AnatomyGuide this summer.
However, turnover for the period, which was generated entirely from its simulation division, is expected to be lower at £2.5m (1H19: £3.1m) for the six months to 30 June 2020.
The group’s shortfall has impacted the group's reseller sales, it detailed, especially across its Chinese and European markets, which declined to £0.6m (1H19: £1.4m).
The group outlined how the COVID-19 lockdown has dramatically constrained its ability to demonstrate and therefore sell ultrasound training simulators to hospitals globally.
Its direct sales in the period grew 4% to £1.9m from £1.8m in the comparative 2019 period despite COVID-19 having impacted overall marketing and sales opportunities in the US.
Despite such restrictions in the UK, Intelligent Ultrasound has increased its sales across the country, limiting the overall revenue shortfall overseas as a result.
Costs were successfully managed across the group to limit the expected adjusted EBITDA loss for the period, despite the decrease in revenue, to between £1.3m-£1.4m (1H19: loss of £1.3m).
Shares in Intelligent Ultrasound started the year at 11.25p and opened today at 10.75p following the update in early morning trading.
In May the company undertook a successful placing, raising £4.8m net of costs and as such cash at 30 June 2020 was £10.1m up from £7.3m for the period ended 31 December 2019.
The group said it remains confident that its cash position, combined with its product pipeline and anticipated future revenues, should enable it to reach its profitability inflection point.
"The team has responded brilliantly to the COVID-19 restrictions,” said Stuart Gall, CEO of Intelligent Ultrasound.
We are particularly proud to have produced a COVID-19 training module in record time and, by offering the module free to our customers, were able to play a significant role in training frontline staff, especially in London (Nightingale Hospital) and New York (VA Harbor Healthcare), in the fight against the virus."
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