Market looking to Optos patient figures

ALL eyes will be on the "pay-per-patient" figures later this week when Optos, the Scottish maker of medical eye scanners, releases its third-quarter results.

The Dunfermline-headquartered company has already experienced a renaissance under chief executive Roy Davis, who joined in November 2008. Optos returned to the black in the first half of this financial year, posting a pre-tax profit of 1.25m against a 3.4m loss previously.

However, the company's share price has eased in recent weeks as investors ponder whether Davis can keep the positive momentum flowing at Optos. A key indicator will be the pay-per-patient figures, which measure how much each machine is used on average per month.

Nomura analyst Gary Waanders said he would like to see that figure "comfortably" above $2000 per month. The amount of cash generated per machine is significant as it indicates the longer-term prospects for revenue growth.

"I am not particularly concerned at the moment with the absolute number of machines installed," Waanders said. "That has declined a bit in the last few quarters, which is in line with what is happening (in the economy]."

Most of Optos's machines are used by individuals who pay to check on retinal detachment, certain types of cancer and other disorders of the eyes. An analyst who preferred not to be named said the fragile state of confidence among shoppers could be reflected in the pay-per-patient figures.

"It is difficult to tell, because it is a consumer purchase, and most of their business is in the US.

"Saying that, they are getting much more data that shows the value of taking these tests."