(Alliance News) - Intelligent Ultrasound Group PLC said on Wednesday it is confident of meeting its annual expectations despite a widened loss in the first half of the year.
In the six months to June 30, the artificial intelligence-based ultrasound software company's pretax loss almost doubled year-on-year to GBP3.6 million from GBP1.9 million.
Revenue for the first six months was GBP5.3 million, more than twice the GBP2.5 million from the same period in 2018. Direct sales rose 45% to GBP1.8 million from GBP1.2 million.
However costs of sales kept pace with revenue, more than doubling to GBP2.5 million from GBP1.2 million. What's more, administrative costs also doubled to GBP6.4 million from GBP3.2 million.
Divisionally, the simulation unit had a year-on-year revenue rise of 24% to GBP3.1 million from GBP2.5 million, helped by direct sales rising sharply in North America.
Intelligent Ultrasound said this segment is close to breaking even at the earnings before interest, tax, depreciation and amortisation level, making the company confident it can meet its full-year expectations.
In the clinical division, the company generated no revenue during the half year. However, in early July, Intelligent Ultrasound said this unit signed a long-term licence and co-development agreement with an unnamed ultrasound equipment manufacturer. As a result, this segment of the business, which aims to use artificial intelligence to boost ultrasound scanning quality, is expected to achieve revenue in 2021.
Chair Riccardo Pigliucci said: "This has been an excellent first half of the year, with simulation division sales increasing by 24% and excellent progress made by our clinical division, which recently announced the signing of the its first long-term agreement with a major ultrasound machine manufacturer, which could be transformational for the group.
"We look forward to continuing growth in simulation sales and winning additional contracts with original equipment manufacturers for our growing range of artificial intelligence based image analysis software."
Shares in the company were down 4.4% at 11.00 pence each in London on Wednesday afternoon.