Annual Report and Accounts 2006 - Optos

Operational and Financial Review
Allan Watson, Chief Financial Officer
“North America remains the
largest opportunity for the
Company, and our excellent
progress continued during the
year with revenues up by 41%
to $64.7 million.”
Overview
Optos had an extremely good year
in 2006. The proceeds from our
initial public offering facilitated
our successful growth strategy. We
improved our operational efficiencies
and delivered solid financial results.
Revenue was $67.7 million, up by 40%
over the previous year. Our contract
renewal rate was 89%. Losses before
tax were reduced by 58% to $1.1
million for the full year, however, the
second half of the year showed the
Group making the transition into profit
before tax of $1.5 million. This success
is down to all of our employees, now
232 strong. I would like to thank them
because our accomplishments in 2006
are a testament to their dedicated
efforts.
Increased Penetration
in Existing Markets
During the year, we deepened our
penetration levels in all of our existing
markets, with particularly strong
returns in the primary care segment
in North America. We increased the
installed base of P200 devices by 584
during the year. This brings the total
number of the installed base to 2,593,
up from 2,009 at the end of the same
period last year. 2,475 of these devices
are located in our core North American
market. During the year, 3.4 million
Retinal Exams were performed in our
existing markets, up from 2.5 million
in the 2005 financial year, an increase
of 34%. We believe that this continued
uptake demonstrates the confidence
healthcare practitioners have in our
technology and the optomap® Retinal
Exam, and is aligned directly with their
commitment to delivering state-ofthe-art,
efficient and thorough patient
care. Critical in attracting more and
more healthcare practices to enter
into a contract with us and install the
P200 device has been our success at
demonstrating to the practitioner
that the optomap® Retinal Exam is
a very effective and efficient tool for
improving their ability to detect and
diagnose disease at an earlier stage.
41%
Increase in revenues in North America.
$59.3 million generated in the United
States and $5.4 million in Canada.
2,475
Total installed base in North America.
Up by 29% from 1,925 at the end
of our last financial year.
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Optos plc Annual Report & Accounts 2006