Intelligent Ultrasound (IUG) , an ultrasound AI software and simulation company, updated markets on its half year results to 30 June 2023, with the revenue increase driven by NHS orders and AI product sales.
Revenue for the period grew by 3% to £6.1m, up from £5.9m in H1 2022. H1 2022 revenue figures included £1.4m of one-off orders from the NHS in the UK, so on an adjusted like-for-like basis, revenue in H1 2023 increased by 35%. Admin expenses increased to £5.4m, up from £5.1m, on higher marketing activity and inflationary increases, offset by lower R&D spend, resulting in an operating loss of £1.5m.
Intelligent Ultrasound's three clinical AI products are also seeing increasing momentum, with revenues related to these growing 144% to £0.7m. IUG expects these revenues to continue to grow in H2.
Simulation revenues declined by 5% to £5.3m, but adjusting for the £1.4m one-off NHS sales in the previous period, like-for-like growth was 27%. Notably, sales from the IUG’s direct sales team in North America grew 154% to £2.7m.
Cash stood at the end of the period stood at £3.3m, down from £7.2m at the end of 2022 as result of working capital seasonality in the first half. However, the company said cash utilisation is expected to fall significantly in H2, and that it anticipates achieving profitability with existing cash resources.
In the period, IUG's ScanNav Peripheral Nerve Block AI software received upgrades in both the UK and US markets, along with the BabyWorks 2.0 simulator - a baby manikin used as a tool for pediatric and neonatal ultrasound - introducing a product update. The ScanTrainer Endometriosis simulator module was also released in the period, which helps sonographers identify the hard-to-diagnose disease.
Stuart Gall, CEO of Intelligent Ultrasound commented: "This has been another positive start to the year. We are growing sales of our AI-related clinical products, as they move out of the early phase of commercialisation and we continue to have an excellent relationship with GE Healthcare, our OEM partner in women's healthcare AI. Our simulation products are performing well in the market and our new releases, including the endometriosis training module for the ScanTrainer simulator, have been well received.
We are building an exciting 'Classroom to Clinic' ultrasound business and we continue to anticipate reaching profitability with our current cash"
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A strong update from Intelligent Ultrasound, with profitability in sight as the company's market-leading tech positions it to become a significant player in the global ultrasound market over the next few years, potentially delivering strong returns to investors.
The company’s strategic focus on AI is likely to reap rewards given the rapid expansion of the medical imaging AI market, which is projected to grow at a rate of more than 34.7% between 2022 and 2029. Increasing imaging volumes and government initiatives promoting AI-based technologies are key drivers fueling global market demand.
Other evidence for the growth of the medical imaging AI market includes its uptake from big industry players such as GE, which has partnered with Intelligent Ultrasound on woman’s healthcare AI since 2020.
In January 2022 GE Healthcare extended its partnership, utilising the software in a new segment of automated ultrasound image analysis, outside of the original agreement. These factors underpin the growth of Intelligent Ultrasound’s clinical AI performance in H1 2023, and should continue to drive growth in the second half and beyond.
The update demonstrates Intelligent Ultrasound’s continued success in the medical imaging industry, providing solutions that help to alleviate strain on the healthcare system through faster throughput, more accurate diagnosis, and reduced operator burnout.
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