I haven’t found a dedicated thread for SUS yet, so let’s open this one.
It is a Swedish company that manufactures virtual training simulators for medical procedures (e.g., endoscopy and laparoscopy).
Are there others on the forum who have invested in / are familiar with the company?
Short info in English:
Surgical Science Sweden AB (publ) develops and markets virtual reality (VR) simulators for evidence-based laparoscopic and endoscopic training. It offers LapSim training system comprising LapSim essence, a portable and ready-to-use VR simulator that fills the gap between lo-fi simulators and fully loaded VR systems; LapSim Haptic System, a force feedback technology with the graphics and cognitive instructions for an immersive, multi-sensory, and very real training experience; and LapSim Basic Skills module, which offers a portfolio of laparoscopic exercises that range from basic navigation to advanced suturing. The company also provides EndoSim system, an endoscopy simulator that delivers medical simulation training; TeamSim, a dynamic platform for inter-professional education development taking surgery simulation into the real world teamwork; and Simball Box, which offers feedback on velocity with tutorial task videos showing a preferred approach.
Redeye’s excerpt about the company:
Surgical Science is about to become the standard in training software for robotic surgery. In addition to the industry leader Intuitive Surgical, agreements have recently been signed with Johnson & Johnson and previously with the upstarts Meere Company and CMR. Before 2030, it has expanded its licensee portfolio with a number of players, including Medtronic. It will also have launched a number of new apps that generate recurring revenue. Robotic surgery has exploded and is used in 30-40% of all surgeries.
INTERIM REPORT JANUARY-SEPTEMBER 2021: GOOD START TO THE MERGER WITH SIMBIONIX
2021-11-10
THIRD QUARTER 2021 (JUL–SEP)
Net sales amounted to SEK 95.3 million (24.9), corresponding to an increase of 282% compared to the corresponding period last year. Simbionix is included with SEK 50.3 million.
For comparable units, sales increased by 31%.
Operating profit amounted to SEK 7.6 million (7.3). The result includes acquisition costs of SEK 21.8 million.
Net profit amounted to SEK 14.4 million (5.9), which resulted in earnings per share of SEK 0.33 (0.17).
Cash flow from operating activities amounted to SEK 51.6 million (9.2). Cash and cash equivalents amounted to SEK 310.6 million (74.7) as of September 30, 2021.
On July 28, it was announced that Surgical Science had entered into an agreement to acquire Simbionix. On August 16, an extraordinary general meeting was held where the directed issue to finance the acquisition was approved. The acquisition was completed on August 24 and Simbionix has been consolidated from this date.
STOCKHOLM (Nyhetsbyrån Direkt) Pareto Securities expects a double-digit rise in Surgical Sciences’ share after the report for the third quarter of 2021.
It appears from a report comment on Wednesday morning.
Sales exceeded Pareto’s own expectations by 41 percent and so did the market’s expectations ahead of the report release, Pareto writes in its analysis. The large deviation is stated to be within Educational Products.
The gross margin is said to have been weaker than the expected weight of the product mix during the quarter. However, with the exclusion of non-recurring items related to the acquisition of Simbionix, the adjusted EBITDA margin was 38 percent compared with Pareto’s own expectations of 26 percent.
Pareto has a buy recommendation for the share with a target price of SEK 320 which is under review.
Surgical Science rose in early trading on Wednesday by 11 percent to SEK 279
And a small update on the target price from Pareto today:
SURGICAL SCIENCE: PARETO INCREASES DIRECT COURSE TO SEK 360 (320)
STOCKHOLM (Nyhetsbyrån Direkt) Pareto Securities raises the target price for Surgical Science to SEK 360 from SEK 320. The buy recommendation is repeated.
Surgical Science Sweden will be included in the MSCI GLOBAL SMALL CAP INDEXES at the end of November, which is great news! Now the company has more credibility. It can be found on page 8 of the published list.
Geneva, November 11, 2021 The following are changes in constituents for the MSCI Global Small Cap Indexes which will take place as of the close of November 30, 2021.
On Ascension Day, a rather large deal came in. Q1 2022 revenue was SEK 159.1 million.
" Surgical Science has, in its operations in the USA, received an order from a large American hospital chain for USD 6.7 million, corresponding to approximately SEK 65.9 million. The order is for a larger number of products, including simulators for training in endoscopy, laparoscopy and ultrasound."
Still can’t complain about the progress. Profitable growth and a positive outlook as robotic surgery gains ground.
FOURTH QUARTER 2022 (OCT – DEC)
Net sales amounted to SEK 250.1 million (197.7), corresponding to an increase of 27 percent compared with the corresponding period in the preceding year. (…)
Operating profit amounted to SEK 61.2 million (44.5).
Net profit amounted to SEK 116.5 million (66.9), corresponding to earnings per share of SEK 2.29 (1.32).
Cash flow from operating activities amounted to an inflow of SEK 78.5 million (outflow 13.0). As of December 31, 2022, cash and cash equivalents amounted to SEK 433.7 million (316.7).
ISRG’s earnings report seems to have instilled confidence in the sector’s outlook, as the share price has risen daily ever since. At the same time, yesterday it closed above 180 for the first time since May '22.
The Q1 results also seem to be well-received by the market. The share price has risen above 220 SEK.
Redeye appears to view the decline in the order backlog as a negative, though it’s difficult to say to what extent this represents normal seasonal variation.
CEO Gisli Hennermark mentioned a temporary component shortage regarding simulators in his comments.
FIRST QUARTER 2023 (JAN–MAR)
■ Net sales amounted to SEK 229.1 million (159.1), corresponding to an increase of 44 percent compared with the corresponding period in the preceding year.
■ License revenues roughly doubled to SEK 70.6 million (35.7) and accounted for 31 percent of net sales (22).
■ Operating profit amounted to SEK 53.3 million (20.0).
■ Net profit amounted to SEK 49.8 million (16.5), corre- sponding to earnings per share of SEK 0.98 (0.32).
■ Cash flow from operating activities amounted to SEK 60.5 million (11.1). As of March 31, 2023, cash and cash equivalents amounted to SEK 482.1 million (329.9).
