Revenues at Optos in line for 33 per cent rise

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OPTOS is set to report a 33 per cent leap in revenues this week as its new, more portable, eye scanner gives it access to global markets.

The Dunfermline-based company is expected to confirm revenues of more than $190 million (£120m) when it publishes results on Wednesday. However, profits are likely to be little changed at around $23.7m as investment was ramped up in order to get its new Daytona device into production.

Analyst Julie Simmonds, at Cannacord Genuity, expects Optos to set out more detailed plans for marketing the Daytona in its results statement, which could act as a catalyst for the shares.

She said the firm will have seen faster growth outside of the US in the year to September, and expects the trend to continue.

About 80 per cent of the company’s sales to date have been in the US. But unlike the older units, Daytona is easy to ship, ready for use “out of the box” and does not require regular servicing, making it easier for the firm to sell it globally.

With just 1 per cent of its potential customers using Optos devices, Simmonds says the Scottish firm has a substantial market to convert.

“In the early days of Optos when the technology was unproven, placement rates were 600 to 700 a year in the US alone. Now the technology is well accepted, with broader 
geographic penetration and multiple purchase options, we believe Optos should be able to significantly exceed this,” she said.