Mauna Kea Technologies Reports Strong Second Quarter 2013 Sales Growth of +33% To €2.5M

Regulatory News:

Mauna Kea Technologies (Paris:MKEA) (FR0010609263), leader in the optical biopsy market and developer of Cellvizio®, the fastest way to see cancer, today announced sales results for the fiscal second quarter, ended June 30, 2013.

Mauna Kea Technologies reports second highest quarterly sales in company’s history

Sales in the second quarter of fiscal 2013 rose 33% to €2.536 million over the same period last year. Second quarter sales of Cellvizio systems to hospitals and clinics, the company’s main target market, increased 23% year over year to €1.998 million, accounting for 79% of sales. Meanwhile, sales to preclinical research laboratories grew 86% to €0.538 million during the quarter.

The company sold 22 Cellvizio systems to generate system sales of €1.778 million during the second quarter, representing a 43% increase in system sales over the same period last year when the company sold 12 systems. As of June 30, there were 211 Cellvizio clinical systems installed globally and the total installed base including preclinical systems was 315.

Second quarter sales of miniprobes, the primary indicator of Cellvizio adoption and utilization by practitioners, increased by 33% to €0.683 million as the company sold 165 probes; 110 probes were sold in the second quarter of 2012. The U.S. commercial launch of AQ-Flex™ 19 miniprobe, the first optical biopsy probe designed to work during needle-based procedures, significantly contributed to this performance.

Sales of services came in at €75,000, a decrease of 50% compared to the second quarter of 2012.

Geographically, second quarter sales in the Asia-Pacific region were up 296% at €0.625 million on continued momentum from the late 2012 launch of Cellvizio in China and the company’s partnership with Fujifilm. Quarterly sales grew by 11% in the Americas at €1.314 million compared to the second quarter of 2012 and by 62% compared to the previous quarter when the company initiated a reorganization of the U.S. sales team, which is now almost completed. The company expects additional recruitment efforts to continue through the second half of the year.

Second quarter sales in the Europe, Middle East, and Africa (EMEA) were up 6% at €0.597 million.

For the second quarter, 52% of revenue was geographically concentrated in the Americas region, while the Asia-Pacific (APAC) and EMEA represented 25% and 23% of the total, respectively.

Cellvizio Launch in the APAC Region as well as Miniprobes Sales Drives Rise in Sales During First Half of 2013

Compared to the same period in 2012, sales during the first half of 2013 increased 23% to €4.32 million, with clinical and preclinical sales growing 20% to €3.438 million and 34% to €0.882 million, respectively.

Sales of miniprobes increased 31% to €1.11 million in the first half of 2013, while sales of Cellvizio systems were up 20% to €2.941 million during the six-month period. The sale of services also increased by 20% to €0.268 million compared to the first half of 2012.

In the first half of 2013, Mauna Kea Technologies sold 35 Cellvizio systems (vs. 24 in H1 2012) for a net increase of the installed base of +32 systems, and 290 probes (vs. 188 in H1 2012).

Geographically, first half sales in the Asia-Pacific region more than doubled (up 147%), while sales in the Americas region and EMEA were stable. The Americas, APAC and EMEA regions accounted for 49%, 30% and 21% of first half sales, respectively.

"We believe that with this solid 33% growth and with our efforts to restructure the U.S. sales team nearly complete we are poised to return to dynamics more in line with our ambitions for growth,” Sacha Loiseau, CEO of Mauna Kea Technologies, said. "Despite ongoing pressures in the macroeconomic environment, we achieved the second highest quarter in our history, demonstrating the relevance of our business model. The growth in Asia-Pacific, fueled by the successful Cellvizio launch in China, indicates we are on the path to success in the Asian market. The rise of miniprobe sales highlights the growing global adoption of optical biopsy as an important tool to facilitate the diagnosis and treatment of patients with various kinds of cancer and disease. With a cash position of €31 million as of June 30, 2013, we expect positive momentum going forward.”

About Mauna Kea Technologies
Mauna Kea Technologies is a global medical device company dedicated to the advent of optical biopsy. The company researches, develops and markets innovative tools to visualize and detect cellular abnormalities during endoscopic procedures. Its flagship product, Cellvizio®, a probe-based Confocal Laser Endomicroscopy (pCLE) system, provides physicians and researchers high-resolution cellular views of tissue inside the body. Large, international, multicenter clinical trials have demonstrated Cellvizio's ability to help physicians more accurately detect early forms of disease and make treatment decisions immediately. Designed to improve patient outcomes and reduce costs within a hospital, Cellvizio can be used with almost any endoscope. Cellvizio has 510(k) clearance from the U.S. Food and Drug Administration and the European CE-Mark for use in the GI tract, biliary and pancreatic ducts, lungs and during needle-based procedures.
For more information on Mauna Kea Technologies, visit www.maunakeatech.com

Disclaimer
This press release and the information contained herein do not constitute an offer to sell or subscribe to, or a solicitation of an offer to buy or subscribe to, shares in Mauna Kea Technologies ("the Company") in any country. This press release contains forward-looking statements that relate to the Company’s objectives. Such forward-looking statements are based solely on the current expectations and assumptions of the Company’s management and involve risk and uncertainties. Potential risks and uncertainties include, without limitation, whether the Company will be successful in implementing its strategies, whether there will be continued growth in the relevant market and demand for the Company’s products, new products or technological developments introduced by competitors, and risks associated with managing growth. Unfavorable developments in connection with these and other risks and uncertainties described, in particular, in the Company’s prospectus prepared in connection with its IPO and on which the French Autorité des marches financiers ("AMF”) granted its visa number 11-236 on June 230, 2011, could cause the Company to fail to achieve the objectives expressed by the forward-looking statements above.