Image credit: Vieworks, CMEF 2018
On May 15th, Vieworks, the Korean originated x-ray solutions OEM, published its financial results for the first quarter of 2020. These show that sales revenue grew at an explosive pace during the first quarter, driven by brisk sales from its medical imaging business. The total company sales revenue reached ₩36 billion, compared with ₩29.5 billion during Q1 2019, an increase of +22% year-on-year. In addition, underlying profitability developed positively during the quarter. Operating profit margin increased from 18.9% of sales during the first quarter of 2019, to 22.2% of sales during Q1 2020.
The sales growth during the first quarter was primarily driven by higher sales revenue from the medical imaging segment, although sales were also higher from the industrial imaging segment*.
Within the medical segment, sales growth was led by increased demand for the VIVIX-S series of radiographic detectors for DR applications, partly due to the heightened demand for diagnostic imaging solutions in response to the COVID-19 pandemic. This segment generated approximately ₩3 billion additional revenues during the quarter, of which, approximately 45% were from domestic sales and 55% from export sales. Demand also increased for medical R/F and dynamic video detectors. The VIVIX-D series of video detectors generated meaningful sales in both domestic and international markets. This product was originally commercialised during H2 2018 and can be used for fluoroscopy, angiography and interventional (mobile c-arm) medical applications. The majority of export sales were to customers based within the United States, Europe, China and Japan. The United States remains the companies largest market, in terms of revenue contribution, with sales and distribution occurring through its subsidiaries MedLink Imaging and Vieworks America.
Within the industrial segment, sales growth was driven by higher sales of the VIVIX-V series of TFT-type detectors, partially offset by lower sales of industrial camera solutions for machine vision and bio-imaging applications.
Production volumes and pricing
During the first quarter, the company reported that both its production capacity as well as production volumes were significantly lower, relative to the first quarter of 2019. This was driven by lower capacity and production of FPDs.
- Production capacity decreased -50% from 3,000 units (Q119) to 1,500 units (Q120).
- Production volume decreased -45% from 2,210 units (Q119) to 1,204 units (Q120).
- Capacity utilisation increased from 74% (Q119) to 80% (Q120).
For CCD-type detectors;
- Production capacity remained stable at 240 units.
- Production volume decreased -23% from 240 units (Q119) to 185 units (Q120).
- Capacity utilisation decreased from 100% (Q119) to 77% (Q120).
For industrial camera solutions;
- Production capacity remained stable at 6,000 units.
- Production volume remained stable at 2,794 units (Q119) and 2,792 units (Q120).
- Capacity utilisation remained stable at 47%.
In terms of pricing, the company reported that the selling price (ASP) of its detector portfolio continued to trend lower during the first quarter. Further price erosion of static FPDs was partially offset by some pricing strength from CCD-type detectors. For still image FPDs (e.g. VIVIX-S) the ASP during the first quarter was approximately -13% lower year-on-year. For CCD-type detectors, the ASP during the first quarter was approximately +2% higher year-on-year. The ASP of industrial camera solutions was approximately -14% lower year-on-year over the same period.
The Vieworks Group
Unless otherwise stated, sales results are for the consolidated Group of Vieworks companies. Vieworks subsidiaries include Vision Viewer Ltd, Sinui Tech (Shanghai), New Medical, Vieworks America Ltd, Senso Hub, Vieworks EU GmbH and Medlink Imaging LLC.