Clinical Laserthermia Systems (CLS) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 reached SEK 8.8 million, a fourfold increase year-over-year; Q2 sales were SEK 5.6 million, up 450% from Q2 2023.

• Loss after financial items improved to SEK -26.2 million for H1 2024 from SEK -38.0 million year-over-year; Q2 loss was SEK -13.6 million, down from SEK -16.5 million.

• Strategic focus shifted to neurosurgery, highlighted by the US Full Market Release of the ClearPoint Prism 3T Neuro Laser Therapy System and a SEK 7.5 million order from ClearPoint Neuro.

• Rights issue raised SEK 38 million, supporting growth and repaying bridging loans, resulting in a debt-free position.

Financial highlights

• Net sales: SEK 8,762,000 for H1 2024 (SEK 1,839,000 H1 2023); SEK 5,622,000 for Q2 2024 (SEK 1,252,000 Q2 2023).

• Loss after financial items: SEK -26,163,000 for H1 2024 (SEK -37,980,000 H1 2023); SEK -13,592,000 for Q2 2024 (SEK -16,516,000 Q2 2023).

• Basic and diluted EPS: SEK -0.02 for H1 2024 (SEK -0.25 H1 2023); SEK -0.02 for Q2 2024 (SEK -0.01 Q2 2023).

• Cash and cash equivalents at period end: SEK 11,970,000 (SEK 5,765,000 at H1 2023).

• Equity ratio improved to 63% at June 30, 2024 (from -31% at June 30, 2023).

Outlook and guidance

• Targeting positive operating profit (EBITDA) in 2026, requiring sales of approximately SEK 70 million.

• Initial benefits from cost reduction program expected in H2 2024; focus remains on neurosurgery segment until end of 2025.

• Anticipates further US market expansion with expected 1.5T MR scanner approval in 2025, potentially accessing 90% of the NeuroLITT market.