SyntheticMR

CEO comments

Weak sales in North America

Given the high ambitions SyntheticMR has, the outcome in the quarter is a big disappointment. Sales in the period amounted to SEK 11.9 million (21.2). Parting ways with employees as well as private reasons that affected key personnel in the North America organization negatively impacted sales processes. The situation has been isolated to the subsidiary in the USA and is now handled. A new manager is now in office and two new salespeople started at the end of the second quarter. After changes have been made in the organization, the now full-fledged team gradually increases the efficiency. Time is reasonably needed to reach full efficiency, but momentum is now clearly increasing.

It is positive that the other priority regions continue to develop well. After the first six months of the year, they are showing growth and performing in line with our expectations. It is also pleasing that the costs for the entire first half of the year are on par with the same period last year. The outcome is the result of good cost control and efficiencies in operations globally. We expect this to have a positive impact on the whole of 2024 and beyond.

Outlook

After four straight quarters of record sales, we have been negatively affected by unforeseen events in the organization. With constant focus on our goals, the situation is now managed, and the entire global team continues to push in the same direction. The response from all our markets to our offer is undiminished strong.

Through the launch of SyMRI in 3D, a crucial milestone is reached on our way towards establishing a new standard in healthcare. The application gives the healthcare the opportunity to gain deeper insights into the structure and function of the brain, ensuring a more accurate and in-depth assessment of medical conditions. SyMRI in 3D will enable doctors to make even better and more informed decisions in diseases including dementia, multiple sclerosis, various pediatric conditions and the growing field of oncology. Technically, the solution also provides opportunities for the development of applications in other areas, for example liver and spine. With great confidence, we continue to implement our growth plan with unabated vigour.

Ulrik Harrysson

CEO, SyntheticMR AB (publ)

This is a translation of the Swedish version of the report. When in doubt, the Swedish wording prevails.