SyntheticMR's Bumpy Road: Navigating Challenges and Opportunities in 2025
May 22, 2025, 7:47 pm
SyntheticMR AB, a player in the medical imaging field, has faced a tumultuous start to 2025. The interim report for the first quarter reveals a company grappling with declining sales, leadership changes, and strategic acquisitions. Yet, amid these challenges, there are glimmers of hope.
In the first quarter of 2025, SyntheticMR reported net sales of 14.2 million SEK, a stark 20% drop from the previous year’s 17.8 million SEK. This decline paints a picture of a company in transition, struggling to maintain momentum. Operating profit took a nosedive, landing at -10.2 million SEK, a significant fall from the previous year’s 2.7 million SEK. The numbers tell a story of a business under pressure, yet they also hint at a potential turnaround.
The company’s net profit for the period was -13.3 million SEK, a sharp contrast to the 3.4 million SEK profit from the same quarter last year. Earnings per share fell to -0.35 SEK, down from 0.08 SEK. Investors might feel a chill as they absorb these figures. However, cash flow from operating activities turned positive at 1.8 million SEK, a silver lining in an otherwise cloudy report. Cash and cash equivalents increased to 22.7 million SEK, up from 16.7 million SEK, suggesting that while sales are down, liquidity remains stable.
A significant event during this quarter was the acquisition of Combinostics Oy, completed on January 2, 2025. This move was intended to broaden SyntheticMR’s portfolio, particularly in the realm of neurodegenerative diseases. The integration of Combinostics is expected to yield synergies, but the immediate impact on sales has been mixed. Combinostics contributed 2.8 million SEK in revenue, which is promising but not enough to offset the overall decline.
Leadership instability has also plagued the company. Ulrik Harrysson, the former CEO, resigned on January 17, only to be replaced by Vedran Beglerbegovic, who stepped down just days later. Johanna Norén now serves as the acting CEO. This revolving door at the top can create uncertainty, both internally and externally. Stakeholders often look for stability in leadership, and frequent changes can lead to a lack of confidence in the company’s direction.
Despite these challenges, there are signs of resilience. The company reported an increase in annual recurring revenue (ARR) to 9.4 million SEK, a positive indicator of long-term growth potential. The adjustment in revenue recognition for Combinostics, while initially painful, aims to provide a clearer picture of recurring business. This shift, however, resulted in a reported sales decrease of 1.6 million SEK for the quarter.
In the U.S. market, SyntheticMR continues to face hurdles. Sales have dropped by approximately 35% compared to the same quarter last year. The company’s reliance on original equipment manufacturer (OEM) revenue complicates direct sales efforts. However, positive feedback from clinical users of SyMRI suggests that the product has potential. The challenge lies in aligning the product with market needs.
In Europe, the situation is slightly more favorable. Although total sales are down, SyMRI’s direct sales have seen an uptick. The integration of Combinostics’ sales team appears to be smooth, indicating that the merger may yield benefits sooner than expected. The appointment of a new sales manager in Europe could also invigorate sales efforts.
The Asia-Pacific region is a bright spot for SyntheticMR. Growth in Japan and India is robust, driven by increasing demand for advanced imaging solutions. However, sales can fluctuate based on order timing, making it essential for the company to maintain flexibility in its operations.
Operating expenses have risen to 26.8 million SEK, up from 20.1 million SEK. This increase is largely attributed to Combinostics’ operations and negative currency effects. The company has managed to keep a tight grip on costs, optimizing its organization for greater efficiency. The hope is that these measures will bear fruit in the coming quarters.
Despite the disappointing operating result of -10 million SEK, there are signs of progress. The integration of Combinostics has already led to synergies, including a reduction in workforce in Sweden. The efficiency improvements are expected to take effect soon, potentially turning the tide for the company.
The Annual General Meeting held on May 20, 2025, further solidified the company’s direction. The decision to forgo dividends and the re-election of board members signal a commitment to reinvest in growth. The appointment of Gisli Hennermark as Chairman of the Board could bring stability and strategic focus.
Looking ahead, SyntheticMR aims to redefine diagnostic imaging through innovative software solutions. The long-term vision is ambitious: to replace conventional methods with advanced AI-driven analysis. The acquisition of Combinostics is a step toward this goal, expanding the company’s reach within the healthcare chain.
In conclusion, SyntheticMR stands at a crossroads. The first quarter of 2025 has been rocky, marked by declining sales and leadership changes. Yet, the company is not without hope. Positive cash flow, increased ARR, and growth in the Asia-Pacific region suggest that the seeds of recovery are being sown. With a renewed focus on operational efficiency and market alignment, SyntheticMR could emerge stronger from this challenging period. The road ahead may be bumpy, but the destination holds promise.
In the first quarter of 2025, SyntheticMR reported net sales of 14.2 million SEK, a stark 20% drop from the previous year’s 17.8 million SEK. This decline paints a picture of a company in transition, struggling to maintain momentum. Operating profit took a nosedive, landing at -10.2 million SEK, a significant fall from the previous year’s 2.7 million SEK. The numbers tell a story of a business under pressure, yet they also hint at a potential turnaround.
The company’s net profit for the period was -13.3 million SEK, a sharp contrast to the 3.4 million SEK profit from the same quarter last year. Earnings per share fell to -0.35 SEK, down from 0.08 SEK. Investors might feel a chill as they absorb these figures. However, cash flow from operating activities turned positive at 1.8 million SEK, a silver lining in an otherwise cloudy report. Cash and cash equivalents increased to 22.7 million SEK, up from 16.7 million SEK, suggesting that while sales are down, liquidity remains stable.
A significant event during this quarter was the acquisition of Combinostics Oy, completed on January 2, 2025. This move was intended to broaden SyntheticMR’s portfolio, particularly in the realm of neurodegenerative diseases. The integration of Combinostics is expected to yield synergies, but the immediate impact on sales has been mixed. Combinostics contributed 2.8 million SEK in revenue, which is promising but not enough to offset the overall decline.
Leadership instability has also plagued the company. Ulrik Harrysson, the former CEO, resigned on January 17, only to be replaced by Vedran Beglerbegovic, who stepped down just days later. Johanna Norén now serves as the acting CEO. This revolving door at the top can create uncertainty, both internally and externally. Stakeholders often look for stability in leadership, and frequent changes can lead to a lack of confidence in the company’s direction.
Despite these challenges, there are signs of resilience. The company reported an increase in annual recurring revenue (ARR) to 9.4 million SEK, a positive indicator of long-term growth potential. The adjustment in revenue recognition for Combinostics, while initially painful, aims to provide a clearer picture of recurring business. This shift, however, resulted in a reported sales decrease of 1.6 million SEK for the quarter.
In the U.S. market, SyntheticMR continues to face hurdles. Sales have dropped by approximately 35% compared to the same quarter last year. The company’s reliance on original equipment manufacturer (OEM) revenue complicates direct sales efforts. However, positive feedback from clinical users of SyMRI suggests that the product has potential. The challenge lies in aligning the product with market needs.
In Europe, the situation is slightly more favorable. Although total sales are down, SyMRI’s direct sales have seen an uptick. The integration of Combinostics’ sales team appears to be smooth, indicating that the merger may yield benefits sooner than expected. The appointment of a new sales manager in Europe could also invigorate sales efforts.
The Asia-Pacific region is a bright spot for SyntheticMR. Growth in Japan and India is robust, driven by increasing demand for advanced imaging solutions. However, sales can fluctuate based on order timing, making it essential for the company to maintain flexibility in its operations.
Operating expenses have risen to 26.8 million SEK, up from 20.1 million SEK. This increase is largely attributed to Combinostics’ operations and negative currency effects. The company has managed to keep a tight grip on costs, optimizing its organization for greater efficiency. The hope is that these measures will bear fruit in the coming quarters.
Despite the disappointing operating result of -10 million SEK, there are signs of progress. The integration of Combinostics has already led to synergies, including a reduction in workforce in Sweden. The efficiency improvements are expected to take effect soon, potentially turning the tide for the company.
The Annual General Meeting held on May 20, 2025, further solidified the company’s direction. The decision to forgo dividends and the re-election of board members signal a commitment to reinvest in growth. The appointment of Gisli Hennermark as Chairman of the Board could bring stability and strategic focus.
Looking ahead, SyntheticMR aims to redefine diagnostic imaging through innovative software solutions. The long-term vision is ambitious: to replace conventional methods with advanced AI-driven analysis. The acquisition of Combinostics is a step toward this goal, expanding the company’s reach within the healthcare chain.
In conclusion, SyntheticMR stands at a crossroads. The first quarter of 2025 has been rocky, marked by declining sales and leadership changes. Yet, the company is not without hope. Positive cash flow, increased ARR, and growth in the Asia-Pacific region suggest that the seeds of recovery are being sown. With a renewed focus on operational efficiency and market alignment, SyntheticMR could emerge stronger from this challenging period. The road ahead may be bumpy, but the destination holds promise.