Modulight Corporation | Company Release | April 25, 2025 at 13:00:00 EEST
This release is a summary of Modulight's 1Q25 interim report. The whole report is attached to this stock exchange release as a pdf file, and is also available on the Modulight website at https://modulight.com/reports-presentations/.
The figures in parentheses refer to the corresponding period of the previous year. This interim report is unaudited.
Highlights in January-March 2025
- Revenue was EUR 1,606 (1,059) thousand. Revenue increased by 52% compared to the same period last year and by 12% from the previous quarter, despite delays from customers.
- The market potential for treatments is growing as indications expand and product use spreads to more customers.
- EBITDA was EUR -582 (-1,314) thousand.
- EBITDA margin was -36.2 (-124.1) % of revenue.
- EBIT was EUR -1,585 (-1,978) thousand.
- EBIT margin was -98.7 (-186.8) % of revenue.
- Earnings per share (EPS) was EUR -0.04 (-0.04).
Key figures
| Group EUR 1,000 unless otherwise noted | 1-3/2025 | 1-3/2024 | 1-12/2024 1) |
| Revenue | 1,606 | 1,059 | 4,095 |
| EBITDA | -582 | -1,314 | -4,836 |
| EBITDA-% | -36.2% | -124.1% | -118.1% |
| Operating result (EBIT) | -1,585 | -1,978 | -8,337 |
| Operating result (EBIT) -% | -98.7% | -186.8% | -203.6% |
| Earnings for the period | -1,616 | -1,872 | -6,447 |
| Earnings per share (EPS, EUR) | -0.04 | -0.04 | -0.15 |
| Acquisition of fixed and intangible assets | -969 | -1,205 | -4,900 |
| Free cash flow from operating activities | -1,551 | -2,519 | -9,736 |
| Cash and cash equivalents 2) | 14,573 | 22,452 | 17,407 |
| Net debt 2) | -10,581 | -16,444 | -12,864 |
| Gearing ratio 2) | -22.2% | -30.5% | -26.1% |
| Equity ratio 2) | 88.1% | 87.0% | 87.5% |
| Headcount (FTE) 2) | 66 | 70 | 66 |
1) Audited
2) Figure refers to the end of the review period
Outlook for 2025
Most of Modulight's customer projects are various types in the early stages of development. These projects are focused on commercializing Modulight's own products. In line with its strategy, Modulight is also transitioning from device delivery-based payments to a new treatment-session-based payment model (PPT business model). The progress of individual projects is difficult to predict, and macroeconomic and geopolitical uncertainty continue to impact market development. As a result, forecasting revenue is challenging, and Modulight does not provide guidance on revenue or profitability for the year 2025.
Seppo Orsila, CEO
Revenue and order intake continued the positive development that started last year. A new indication related to the treatment of eye cancer was added to the product development pipeline, and the planned development of the PPT business was advanced. Our profitability also improved despite the high level of product development activities. However, the progress of our business was slowed down particularly by delays in our customers' own third-party-related regulatory processes. Cash flow from operations weakened in the first quarter by 43%, totalling -1.3 (-0.9) million euros, mainly due to the timing of deliveries. We have observed growth in the market potential of our treatments.
Revenue in the first quarter was 1.6 million euros, which was 52% higher than the corresponding period in 2024 and 12% higher than the previous quarter. However, the revenue level was still affected by our strategic transition to the PPT business model and delays in prototype deliveries. The revenue grew despite delays in customer projects. The growth and expansion of the order backlog, together with the progress of the PPT model, provide better visibility into the future. Increased trade policy tensions have so far not reflected in our customers' demand or feedback. A significant part of our exports to the United States is also service exports, meaning that, at the time of writing, it does not fall under new tariffs. Many of our American customers have production facilities outside the United States.
Our substantial investment program has been completed, and related commissioning costs have decreased. This has partly improved profitability, although we continue developing our own product. Measured by EBITDA, profitability improved by 56% in the first quarter, amounting to -0.6 (-1.3) million euros. Our total operating expenses have decreased by 15% compared to the reference period, even though we have continued to increase investments in product development as well as in sales and marketing activities. We will continue improving operational efficiency while maintaining a high level of product development activities.
Phase III clinical trials remained a key focus area of our work. The clinical results from our customers have been favourable. Notably, they have successfully broadened the studies' inclusion criteria. While this enhances the treatment's market potential, it may temporarily slow the pace of study advancement in the near term. Despite delays, the goal is to install a record number of devices during the spring and summer. Device fleet growth is especially expected in those indications where our profitability is above average and the product development pipelines are more mature. Customers have also expressed a desire to continue expanding and deepening collaboration, as previously reported. In addition, we have advanced our long-term research efforts and patent portfolio.
The goal of our projects is to commercialize our own products. Our product development pipeline grew to 31 projects. These projects focus on commercializing our product platform for multiple different indications and medicines. We have increasingly focused resources on projects with existing customers as they move closer to commercialization. Additionally, it's worth mentioning progress in our second quantum computing customer relationship, for which we announced a new order in February.
Investments in our factory - such as expanding production capacity and developing the biolaboratory - have strengthened our competitiveness. In addition, the synergies of our platform solution are increasingly visible as a competitive advantage and a distinguishing offering. This has materialized, for example, as increased orders from long-term customers and the trust to entrust larger projects solely to us. In the previous quarter, we highlighted micro-optics and mechanical development as a competitive factor. During the early part of the year, this has helped win new customers and deepen cooperation with existing ones. Our broad expertise and vertical integration enable the development of better products in shorter timeframes and improve our customers' supply chain reliability in multiple ways.
In the current global situation, having our own production facility has become an increasingly important competitive advantage. We believe this has positively contributed to expanding our customer base as well as to the growing list of references. Through geographical expansion, we have gained new customers also outside the United States. United States remains the company's primary focus. Our sales and service operations have significantly strengthened over the past year - the best evidence of which are the increased order volumes and widening of the order base. At the same time, we have also developed opportunities for starting local production if needed. Currently, this need has not been observed.
We increasingly have interesting customer accounts, along with a strong cash position and the ability to quickly respond to market opportunities - for example, by increasing product development. We will continue focusing on growth strategy-driven actions, such as expanding our PPT model and advancing product development pipeline projects toward the commercialization of our own products. We believe that by following our growth strategy and capitalizing on our strengths, our business will return to strong and profitable growth during our strategy period, which extends to the end of 2025.
Financial reporting in 2025
In 2025, Modulight will publish the following financial reports:
- Half-year report January-June 2025: August 22, 2025
- Interim report January-September 2025: October 24, 2025
Webcast
Modulight's CEO Seppo Orsila will present the result in an English-language webcast on April 25, 2025, at 2:30 p.m. EEST. The broadcast can be followed at https://modulight.zoom.us/webinar/register/WN_tqzJj-yMSdKfvJGHv2WF5g.
Questions are to be submitted in writing in the webcast portal. CFO Anca Guina will also be present to answer questions. Presentation materials will be available before the start of the event on the company's website at modulight.com/reports-presentations/.
For further information, please contact:
CEO Seppo Orsila, m. +358 40 830 4671
IR Ulla Haapanen, m. +358 40 830 4676
Email: ir@modulight.com
Certified adviser: Sisu Partners Oy, m. +358 40 555 4727
modulight.com
@modulight
Modulight in brief
Modulight Corporation is a biomedical laser company that designs and manufactures products for oncology, ophthalmology and genetics. The company also provides solutions for selected high value-add applications including quantum computing and digital press. The company's products include medical devices, subsystems, software, cloud services and specialized semiconductors. Modulight's products are used worldwide by many Fortune 500 companies, pharmaceutical companies, and well-known cancer centers and universities. Modulight was founded in 2000 and is headquartered in Tampere, Finland.
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