Good morning, everyone. Welcome to this webcast presenting the First Quarterly Report in 2021 from Mentice. I will be going through the presentation. My name is Göran Malmberg. I'm the CEO and President of Mentice. Let's get going. Welcome, everyone. Disclaimer, this is me. Getting into the quarter. Looking at the left side here first, the continued strong medical device industry order intake. We also see, as I write in the report, during last year, we've seen a lot of new interest for online application, remote applications in the pandemic, and we see that continuing as a complement to what we do. It's not in any way replacing what we did before, but it's adding on to what we do. We see a lot of interest for that, and I think it makes a lot of sense, the combination of our more traditional solutions with these online remote and mobile applications. In the quarter, we had a very strong business in APAC, where obviously last year was the first pandemic quarter, and really, the pandemic, as you know, hit the Asian region first, China especially, but the entire APAC region was shut down last year. That's nice to see that region is opening up, mostly opening up. Our business is mainly from Japan and China. We had a really strong Japanese quarter, but as well as Chinese quarter, mainly device industry across Asia. We obviously still see some parts of Asia that are still closed, like India, for instance. We generally see overall, we're extremely pleased with what we have been able to do during the last year going into this quarter. The continued ability to generate orders, but the healthcare market is clearly the big issue and the main impact from the pandemic here. Really, if we look at that, we are obviously down quite significantly in sales from the healthcare sector, also impacting equally the Strategic Alliances business since our Strategic Alliances partner with Siemens and Philips obviously are selling into the same market segment with hospitals. That's clearly what we still see, and we believe it, as I said, looks promising in Asia. Going into the second quarter here, we clearly see positive signs from the economy in U.S. and North America, while the European market is probably the region that still shown the largest uncertainty. That's where we are. We're really pleased with the quick integration, or I would say successful integration of the Vascular Simulations business from the acquisition we did back in October. We have, in a very short time, completely integrated that business into our go-to-market structure. We already in Q4 had a good structure there. Looking at this quarter, we adding good level of orders. We adding good level of net sales with a good margin. I think this is a very good example of our ability to really leverage our size and our go-to-market structure to incorporate the new business. That's really nice to see, and we clearly see that's going to have a positive impact on our business during this year, but also going forward. Looking at a little bit more details to the right here. The order intake, as we say, is close to SEK 40 million. It could have been even more, but the SEK 40 million is a nice uptake. The main positive side is the industry side, obviously, considering that we had negative delta both for healthcare hospital sales and Strategic Alliances. That's even more positive. I would say, which I also write about in the report, but the most encouraging thing I think overall here is to see that we did produce a good first quarter, considering the very strong fourth quarter. Typically, when you have a strong finish of the year, like we did in Q4, you might see a little bit slower following quarter. That is not the case here. I think looking at the order book here, where we have over SEK 70 million in the order book, with 60% of that scheduled for 2021 and a large part of that scheduled for the second quarter, that's really, I would say, the strongest sign of where we are for the year. If you look at the order book and the fact that 60% of that is scheduled for this quarter, compare that with the same and adding the first quarter's revenue, sorry, or in the first quarter's net sales, we are considerably above last year. I think we're 38%, to say we report above the same number last year. That really, I think, is a positive sign. Looking at the net sales, I'm obviously less pleased with the fact that we were not able to recognize more of the order book in the first quarter. Most of that is moved into the second quarter. We have several reasons for that. The main reason is still the pandemic. We have still issues getting systems into certain parts of the world. Obviously, it's difficult to travel, which prevent us from install the systems. Generally, we see delays from that. We also had a fairly rapid increase of requests for our new simulation device, the VIST G7, which also have caused some delays in the first quarter since we are ramping up the production of that device. We are hopeful we will be able to address most of this in the second quarter. We also believe that we will be able to deliver most of what's been delayed from Q4 into Q1, and now further into Q2. Again, I'm not pleased with the net sales, but I think looking at what we have in the order book and the scheduling of the order book, I hope we can repair that in the second quarter and obviously for the remainder of the year. The effect of the net sales, Sorry, I'll do the gross margin first. As some of you noted, we had a lower margin in the fourth quarter. I think that we have been able to sell at a better margin, higher margin here. We have 80% gross margin for the first quarter compared to 84 and change in the first quarter of last year. The difference there is really related to the currency effect. If you remove the currency effect and equal that out, it's pretty much the same margin as we had first quarter last year. I'm certain that we are on the good path for that. The same thing with the VIST G7. There our ramp-up of that production will align us again, I think, in better margins. Clearly also just to say that the margin effects we have had has also been impacted by lower hospital sales since hospital sales generally have a larger component of software. The product mix is clearly a factor as well. Overall, I think the gross margin in Q1 was good and what we expect. Cost levels, even if we have added people, we have maintained cost work levels in a good way, basically on par with last year, just a small difference. The only added component here is really Vascular Simulations. That for the full quarter have an effect about SEK 2.2 million for personnel and for the total OPEX, sorry. The cash flow from operation is negative, but obviously directly linked to the lower net sales or the fact that we couldn't render from the order book. I would say that will be changed in the second quarter, and I hope we will get back to the expected levels during the second quarter. Obviously, again, the operating income here was lower than last year, also directly an effect of net sales. We also had other income and the kind of currency exchange effect here that's fairly large. It's, I think, SEK 3.8 million or so. That's a large component here also. Yep. Looking forward into second quarter and the rest of the year, I think that we obviously expect the pandemic still to have an effect. We continue seeing a very strong demand from the medical device industry. Generally, the pipeline for both the second quarter and the full-year is strong. We hope to see a rebound or a positive way back for the hospital market. As said, I think this will be starting with the Asian region, and I think the North American or Americas region will follow shortly. We see the effect of the vaccination in U.S. has really made a difference. We're starting to travel, and hospitals are starting to opening up, even if it will be a little bit touch and go, as we say, during this quarter. I see really a positive signs there. We also have a lot of good discussions with the Strategic Alliances partners. As I've said before, we have invested in a regional structure generally, but also specifically for strategic alliances. We have now local people supporting the strategic alliances group, both in U.S. and in Asia, and we're hiring for people in Europe. We have a lot of activities in these regions now, adding on to the corporate relationship we are managing from our headquarter. I really believe even we have started slower for the year for strategic alliances. Obviously, as I said, that's impacted by the pandemic, but I still think that we will see positive things happening on the strategic alliances thing here over the next couple of quarters based on the products we have going there. We are hiring mostly in the regions, mostly sales and support, to really fully build our regional structure. We're also doing that carefully. We need to look at basically every week what is happening. We have been able to add quite a few people in the first quarter, and we'll continue doing that over the second quarter. Yeah, I've already said that with the order book and what we are, we really see that the year is starting off fine. Looking at the drivers for the year, not a big change from what I said after the Q4, but we really see a big demand for our new simulation device. We have a lot of discussion on the key therapy areas like structural heart. We see a big demand for ultrasound technology, which is really unique. We also see the Mentice Live application where we have several national societies looking at using Mentice Live. We have discussions with our Strategic Alliances partner and also products for them to use our cloud-based solution for managing their users, the training programs and such. That's really positive. I think overall, from a competitive point of view, we really have a good grip of the market, and there is very few situation where we face competitor with a technology or a solution that couldn't match ours. Obviously, we still have competition, and obviously in some areas, we're opening up for a completely new kind of players. I think our position is continuing being stronger, especially in the medical device side. We have a clear focus with our larger clients, our top five, six clients, where we see a lot of opportunity to continue to expand. The vascular simulation piece, really pleased with that for six months here. I think we are on the same level for six months here since October as Vascular Simulations did for the full-year last year. I think with the integration of that activity in Mentice, we really have a good structure that could generate a good net gain for that business inside Mentice. We are working a lot on the neurovascular side, so the brain-related therapies. Establishing a scientific advisory board in the U.S. with key positions that we were going to talk about more in details shortly, really also promising. As we talked about previously, it's been delayed due to the pandemic, but we have really encouraging discussions on embedding and bundling for our technology with these partners. That's really short and concise. I feel good about where we are. I would like to have a stronger start with respect to net sales in Q1. I think the underlying business is really there. I think we will be looking forward to a strong year here in 2021. With that, I will see if there is any questions from the group. Thank you. Thank you, Göran. Please, you can raise your arm if you want to be unmuted and ask the question directly verbally to Göran, or you use the question tool on the right-hand side to text your question to us. All right. I don't see any questions. With that, I think we will close this session, Dominic. Yep. I don't see any questions here either, so thank you. Thank you so much, everyone, for joining. If there's any questions on the side, feel free to contact me directly, and I will try to answer your questions. Thanks for your time this morning. Have a good day.
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