Image credit: Rayence booth RSNA 2017, Rayence US
On November 13th, Rayence Corporation published its financial results for Q3 2020. These results show that Group sales continued to contract sharply during the quarter. Total Group sales reached ₩23.2 bn, compared with ₩32.1 bn during Q3 2019, a decrease of approximately -28% year-on-year. This took cumulative 2020 sales to ₩73.4 bn, compared with ₩93.1 bn in 2019, a decrease of approximately -21% year-on-year.
From a product mix perspective, the sales contraction during the quarter was driven by lower sales across all major product lines: TFT and CMOS-type detectors and intra-oral (I/O) sensors. During the quarter, sales of TFT-type detectors were approximately -40% lower, relative to Q3 2019, resulting in cumulative 2020 sales growth of -3.9% year-on-year. The TFT portfolio includes the 1012WCA, and 17SCC/SGC products. During the quarter, sales of CMOS-type detectors were approximately -16% lower, relative to Q3 2019, resulting in cumulative 2020 sales growth of -34.5% year-on-year. This includes detectors such as 215CF (industrial), 1501CF (dental) and 1724CM (mammo). During the quarter, sales of I/O sensors were approximately -47% lower, relative to Q3 2019, resulting in cumulative 2020 sales growth of -42.1% year-on-year. This portfolio includes the industry-leading EzSensor.
During the quarter, the average selling price of TFT detectors fell -8.1% compared to 2019, and CMOS detectors fell -1.73%. In addition, the average selling price of I/O Sensors fell -4.32% compared to 2019.
Disclosure of single sales and supply contracts
|Nanning Yiju Medical||5-years||CNY 175.5m||Medical TFT|
|GE Healthcare||4-years||KRW 23.5 bn||Mammo FPD|
|GE Healthcare||3.7-years||USD 15.5m||Medical TFT|
|GE Precision Healthcare||5-years||USD 27.4m||CSI Wireless|
|Undisclosed (China)||5-years||USD 15.5m||Dental FPD & I/O|
Sales by geographic region
From a geographical perspective, the sales contraction during the quarter was driven by lower sales from both domestic and international export markets. During the quarter, sales originating from international customers declined by approximately -26% relative to Q3 2019, resulting in cumulative 2020 sales growth of -12% year-on-year. During the quarter, sales originating from domestic customers declined by approximately -29% relative to Q3 2019, resulting in cumulative 2020 sales growth of -29% year-on-year. Historically, the majority of domestic sales are to Vatech Corporation, the companies original parent, largest shareholder as well as its largest domestic customer. A significant proportion of these sales will end up being exported globally under the Vatech brand through its global distribution network. While the company does not report on its international sales by geography, the Group’s financial accounts do include details of trade receivables and significant transactions between its subsidiaries. These can provide some indication around trade activity by geographic region. For the first nine months of 2020, these statements indicate the following:
- Significantly lower sales from Rayence Inc, the company’s US-based subsidiary.
- Significantly lower sales from OSKO Inc and it’s Mexican counterpart OSKO MEX. Rayence acquired OSKO Inc and OSKO MEX during 2016 to enable greater sales and distribution across the Latin America region and the demand for TFT detectors within this market has been strong during recent periods as the region transitions from analogue to digital x-ray solutions.
- Explosive sales growth from the MyVet Imaging Inc (USA) subsidiary, which has subsequently merged with Rayence to form a new company, Rayence & MyVet Inc.
- Explosive sales growth from Woorien (Korea), the companies veterinary and animal health subsidiary. During 2018 Rayence Corporation transferred intellectual property and assets relating to its veterinary health entity to Woorien in order to rationalise as well as support future growth initiatives. During 2020, Woorien has launched a number of new products including the world’s first veterinary dental panoramic x-ray system and a veterinary specialised CT scanner, both of which can be integrated with its animal PACS solution VetView.
Other regional developments:
- Rayence incorporated “Rayence China CS” although no sales were reported just yet
- Rayence opened a Seoul branch
|Rayence & MyVet||USA||92.31%|