TIDMEGI

RNS Number : 4382O

Electrical Geodesics, Inc

09 February 2016

Electrical Geodesics, Inc.

Trading Update

EUGENE, OREGON, US, 09 February 2016 - Electrical Geodesics, Inc. ("EGI" or the "Company"), a leading neurodiagnostic medical technology company, today provides a trading update for the year ended 31 December 2015. EGI will announce its audited results for the year ended 31 December 2015 on 19 April 2016. The Company has taken the decision to report its results under US GAAP henceforward. The results reported below are expected to be substantially the same under US GAAP and IFRS.

On a preliminary, unaudited basis, the Company expects to report revenues for the year ended 31 December 2015 of $13.8m, an increase of 4% over the $13.2m reported for 2014. In addition, the Company expects to recognise grant income of some $1.5m for 2015 (2014: $0.6m). Following a somewhat disappointing first half performance when revenues of $5.2m were recorded (10% down on the prior year), revenues in the second half of 2015 were strong at $8.6m, representing a 15% increase over the same period in 2014. The Company closed the year with approximately $1.0m of unfilled orders, around half of which should be fulfilled in the first quarter, with the balance being pre-orders for GTEN (Geodesic Transcranial Electrical Neuromodulation) systems likely to be filled in the second half of 2016. The balance ($1.3m) of the ElMindA supply contract will also be filled during 2016.

The Company's cash reserves as at 31 December 2015 were approximately $1.2m ($1.4m at 30 June 2015) and invoice-factoring facilities are in place to help manage cash flows. The Company expects the recent pattern of revenues being materially second half weighted to be a feature of the current financial year. The Directors are carefully managing the Company's cash flows whilst also reviewing options to increase the working capital available to the Group so that growth opportunities can be exploited.

On an operating basis, EGI is pleased to report the following:

-- Product development is on track for a Q3 2016 research release of the Company's flagship source imaging program GeoSource 3.0 which will feature individual head modeling capabilities and expanded atlas modeling. This product is a companion product to the GTEN product which is also expected to be released to the research market in Q3 2016.

-- The clinical trial for dense array EEG localisation and GTEN (Geodesic Transcranial Electrical Neuromodulation) treatment of focal epilepsy is progressing well. At the US site, Harborview Hospital University of Washington (Seattle), 15 patients have been evaluated in the diagnostic phase and the intervention phase is planned to start in March 2016. The diagnostic phase is now underway at the China site, Huashan Hospital, Fudun University (Shanghai).

-- The release in Q4 2015 of a range of Geodesic Sensor Nets targeted at the particular needs of the underserved neonatal intensive care market.

-- The submission of an Investigational Device Exemption (IDE) for the study of dense array EEG localisation and rTMS (repetitive Transcranial Magnetic Stimulation) treatment of focal epilepsy. The study will take place at Stanford University Hospital.

-- Gary Weber has joined EGI as its CFO on an interim basis. Gary has extensive experience with American publicly traded companies and recently served as CFO for the fine chemicals company, Synthetech Inc. Christine Soden, the Company's former CFO remains on the Board as a non-executive Director.

Don Tucker, CEO of EGI, commented: "It is a pleasure to report solid growth for 2015, despite a difficult first half which saw unusually weak trading conditions in a number of our key markets, driven by our advancing product line and expanded indications. Our results reflect expansion in both clinical and research sectors of the US market as well as some stability in our key international markets. With a strong pipeline of new products and our key Phase I trials underway we feel positioned for continuing growth in 2016. We firmly believe that our strength in electrical source imaging and our new GTEN technology will combine to provide a new level of precision in electrical neuromodulation that will attract both research and clinical customers. The evidence continues to be strong that non-invasive neuromodulation through both TES and TMS will be significant in the future treatment of many neurological disorders."

For more information contact:

 
 EGI 
 Ann Bunnenberg              +1 541 687 7962 
 Peel Hunt LLP (NOMAD and 
  Broker) 
                             +44 (0) 20 7418 
 James Steel, Tom Burt        8900

Notes to Editors

Electrical Geodesics, Inc. in Summary

Founded in 1992, EGI designs, develops and commercialises a range of non-invasive neurodiagnostic and neuromodulation products used to monitor, interpret and modulate brain activity, based on its proprietary dense array electroencephalography ("dEEG") platform technology. The Company's technology uses up to 256 sensors, providing much higher resolution brain activity data compared to conventional 8 or 16 channel EEG and is used in medical, clinical and research settings in a diverse range of applications including important areas such as the diagnosis and monitoring of epilepsy, neurosurgical planning, sleep assessment, and many others.

EGI's dEEG systems, available in the GES 300 and now the GES 400 lines, capitalise on the Company's unique Hydrocel Geodesic Sensor Net which allows faster, easier, and more convenient placement of many EEG sensors in an even distribution over the entire scalp, providing more accurate and precise diagnosis and measurement. EGI's technology is now widely used in neuroscience research laboratories and is becoming more commonly used in clinics, care centers, and hospitals around the world. Data is measured and visualised using EGI's proprietary amplifier technology and software, providing a complete, advanced, high-resolution EEG platform. The Company's products are compatible with multiple diagnostic and imaging technologies, including magnetic resonance (MR) imaging, functional MRI (fMRI), and magneto-encephalography (MEG).

See our website www.egi.com

Glossary

 
 EEG     Electroencephalography 
 dEEG    Dense-array EEG 
  GTEN    Geodesic transcranial electrical 
          neuromodulation 
 MRI     Magnetic resonance imaging 
 fMRI    Functional MRI 
 PET     Positron emission tomography 
 MEG     Magneto encephalography 
 NIRS    Near-infra-red spectroscopy 
 TES     Trans-cranial electrical 
          stimulation 
 TMS     Trans-cranial magnetic stimulation

This information is provided by RNS

The company news service from the London Stock Exchange

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February 09, 2016 02:00 ET (07:00 GMT)

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