Revenio Group Corporation: Interim Report January 1 - March 31, 2015: Strong first quarter - considerable growth in net sales and operating profit

Revenio Group Corporation Stock Exchange Release April 24, 2015 at 9:00

Revenio Group Corporation Interim Report, January 1-March 31, 2015               

Revenio Group Corporation is adopting the publication procedure enabled by the Financial Supervisory Authority's Regulations and guidelines 7/2013 (Disclosure obligation on issuers) and is publishing its Interim Report for January-March 2015 as an appendix to this stock exchange release. This stock exchange release is a summary of the Revenio Group Corporation's Interim Report for January-March 2015. The Interim Report can be read in full in the PDF appendix to this release. The Interim Report is also available on Revenio's website: http://www.revenio.fi.

STRONG FIRST QUARTER FOR REVENIO
- CONSIDERABLE GROWTH IN NET SALES AND OPERATING PROFIT

January-March in brief, continuing Group functions:

• Net sales EUR 4.6 (3.7) million, growth 24.4%
• Operating profit EUR 1.4 (1.1) million, growth 26.8%
• Undiluted earnings per share 0.16 (0.12), diluted earnings per share 0.15 (0.12)
• Cash and cash equivalents EUR 5.1 (4.0) million
• Equity ratio 69.7 (63.7)%
• During the review period, in February, the Group announced the licensing of technologies related to the detection of asthma and skin cancer and the intention to commercialize these technologies. The projects have proceeded according to plan
• The sale of Boomeranger Boats Oy in February supports the Group's focus on health technology
• Revenio's NASDAQ OMX ICB classification changed to Health Care on March 3, 2015
• From the beginning of May, CEO Olli-Pekka Salovaara will temporarily relocate to the United States, which reflects the central role of this market in the health technology industry
• The growth of probe sales continued strong, amounting to 2.3 (1.8) million pcs, up by 27% from the previous year
• During the review period, we made headway in the clinical trials related to the Icare HOME tonometer's FDA license in the United States

Key figures, Continuing operations, MEUR:

Financial guidance

The net sales and operating profit of Icare are expected to grow from last year. Investments in new business operations related to health tech, which have an impact on consolidated operating profit and cash flow. No significant investments will be made in 2015.

Outlook

In the next few years, health care will face considerable challenges everywhere in the world. Aging populations, the proliferation of chronic diseases, increasing inequality and, most of all, the increasing costs of health care, will force national economies to look for more efficient ways to treat and prevent diseases having a major impact on public health. Screening and the related technologies play a key role in this development. The screening market is global, and too little screening is still performed in relation to the potential benefits. In contrast to the development of new pharmaceuticals, screening does not require prolonged clinical trials; rather, the benefits can be achieved with quick and precise referral for treatment.

Revenio's role in the screening process is to produce simple and easy-to-use methods, devices and technologies to replace old-fashioned and inefficient operating models.

Olli-Pekka Salovaara, President and CEO, comments on the first quarter results:

"As expected, the first quarter of 2015 got off to a strong start. Our net sales grew by 24.4% and we enjoyed excellent profitability, despite investments in new growth areas. The considerable strengthening of the US dollar has a positive impact on our result as we exchanged USD deposits for euros in 2014 and during the first quarter of 2015.

From March 2015, Revenio is a health tech group according to the NASDAQ OMX ICB classification, with Health Care as its official industry classification. Our goal is global market leadership in eye pressure measurement products. In the evolution of technologies related to the measurement of eye pressure, Icare is in the process of displacing competing products based on traditional methods, which has enabled us to win market shares in our key markets. Our new health tech R&D projects announced during the review period tackle global public health challenges in which the common denominator is a pressing need to make cost savings in health care via preventive measures. We will revolutionize these markets by introducing leading screening technologies used by health care professionals everywhere in the world. We are systematically launching new, easy-to-use and cost-effective products for screening and monitoring for diseases with a major impact on public health.

In February, we sold the entire share capital of Technology and Services segment subsidiary Boomeranger Boats Oy, which had been transferred to discontinued operations.  We are focusing on health technology in accordance with our strategy, and the sale of a company not operating in this core field of business supports the realization of the strategy.

Icare's tonometers sold well in all key markets during the review period. The sales of Icare HOME tonometer have picked up speed. According to feedback from experts, there is clear demand for this product that will change current treatment practice. In the United States, the clinical trials related to our FDA license application have progressed well during the review period, but it is still too early to say when we will be in a position to file the application. Probe sales have maintained a strong growth, which provides a stable and constantly expanding foundation for Icare's device sales.

For its part, the Oscare Sono(TM) osteoporosis detection device has attracted a great deal of interest in the market during the review period. The device is an excellent screening method for DXA, which represents the current standard. We will therefore once again help society to save on costs, as patients needing more detailed examinations can be referred to further tests on the basis of screening.

The operations of Revenio Research Oy, the subsidiary that we established in December, have been initiated according to plan.  Our projects related to asthma and skin cancer detection technologies progressed according to plan in Q1. It should be noted, however, that even though both products have been tested by experts and received excellent assessments, we do not expect a commercial impact from these products for a few years yet.

From the beginning of May, I will be working from the United States, which reflects the crucial role of the US market as the largest market area for health technology. Through our presence in this market area, we will be able to better support our local distribution network and our own organization, and make them even better. Local presence is important also in terms of moving the FDA process forward. The most important reason for my moving to the US is to build personal relationships with the customer base, our distributors and physicians in decision-making positions."

General clause

This release contains certain forward-looking statements that are based on management's current assumptions. Due to their nature, these statements involve risks and uncertainty, and are sensitive to changes in the economy or industry.

Revenio Group Corporation
Board of Directors

For further information, please contact:
President & CEO Olli-Pekka Salovaara, tel. +358 40 567 5520
olli-pekka.salovaara@revenio.fi
www.revenio.fi

DISTRIBUTION:
NASDAQ OMX Helsinki
Financial Supervisory Authority (FIN-FSA)
Principal media
www.revenio.fi

The Revenio Group in brief

Revenio is a Finnish health tech group whose core business is tonometers. The Revenio Health Tech segment comprises the business operations of Icare Finland Oy, Revenio Research Oy and Oscare Medical Oy, which specializes in osteoporosis screening and monitoring. The common denominators of Revenio's business operations include screening, follow-up and the global need to make cost savings in health care via preventive measures. Revenio seeks vigorous growth in health technology, both organically and through acquisitions and mergers. Revenio aims at developing even more efficient and easily adopted methods for the early-stage detection of diseases with significance for public health. The focus of Revenio's screening technology lies on the early detection of glaucoma, osteoporosis, skin cancer and asthma, and the monitoring of these during the treatment process.

In 2014, the Revenio Group's net sales totaled MEUR 16.0, with its operating margin for continuing operations standing at 27.5%. Revenio Group Corporation has been listed in NASDAQ OMX Helsinki.