Welcome to this fourth quarter Q&A with Ola Lindblad, CEO of ContextVision, and Fredrik Palm, CEO of Inify Laboratories. First to you, Ola. Congratulations, new CEO of ContextVision.
Thank you very much.
Well, how do you feel?
Well, I'm very excited. It's great to take on this opportunity.
How will this demerger of Inify affect ContextVision?
Well, before I answer that question, I wanna just thank Fredrik for all your contribution to ContextVision and wish you good luck with in Inify Laboratories.
Thank you.
Coming back to your question, Ola, one of the things we see is, obviously, it's gonna be sad to see some colleagues leave the company. That's obviously gonna be one of the effects. However, I think it's this split is gonna also affect very positively on ContextVision 'cause we will have a chance to focus solely on our business model, so our main business.
Yeah.
That's gonna be positive.
Okay. What's your main business? What's the core business?
Well, our core business is, I mean, we're a B2B company, and we're a software company focusing on medical imaging. Our customers or the companies we're supporting are the system manufacturers of ultrasound, X-ray, and MR systems, and we help them providing the best possible imaging coming out of their systems. We've been doing this for 35+ years, and we are the leading independent provider doing this in the world.
Before the pandemic, you had steady revenue growth. How was the fourth quarter?
Well, I can just report that it's been the third consecutive quarter with growing revenue. This leads up to a record year in 2021. We're up to a 4% increase compared to last year.
Well, congratulations again.
Yeah. Very excited.
You also delivered fantastic margins. We talked about 30%-40% before the pandemic.
Yeah.
Will that continue?
Well, yeah, it will continue, although we will have a slight dent in the increase due to the spinoff here. Because now when we're only one business unit, we'll obviously have to carry all the overhead costs. We will have a slight dent, but we see also that it's gonna be a quick going down, and then it's gonna pop up again. We see that going back to the normal, if you wish, margins here going forward.
Okay. That's good. Fredrik, you're now starting on a brand-new journey with Inify Laboratories. Feels good?
Yeah. Sure. I mean, first, I would like to say that it's been a true pleasure to be a part of and lead ContextVision for 10 years. My opinion, I mean, stars are aligned for further growth and success, and I'm sure that Ola and his new management team are sharing that view. I will follow you closely, of course, going forward. Coming to Inify Laboratories, I've been working with the analysis and the preparation for this for quite some time, and it is truly a beginning of something that have an extensive potential to become the future of pathology services. How I feel? I'm excited, and I'm inspired.
Yeah. Can you describe more about the business?
Yeah. Sure. Our vision is to build the best pathology service in the world for selected cancer types, and we start off with prostate cancer, as been communicated before. It is extremely motivating to build and establish a company addressing an alarming need such as diagnosing cancer, of course. We have a cross-professional team, with us already from the start, spanning from corporate management to laboratory operations to application expertise. It is a modular setup, fully standardized, so it's scalable in volume across diagnoses and prepared for geographical expansion. It is important for us to provide our high -quality diagnostic service to as many patients as possible with efficient and predictable turnaround times. It will add value to patients, medical professionals, and, of course, create shareholder value.
Talking about shareholder value, how is the capitalization of the company now?
We have initial funds with us in the company from the start, but we are also working to get additional funding in place that will take us to a solid proof of concept.
Finally, what are the crucial success factors for Inify?
Yeah. Well, I mean, first of all, we have one of the, if not the most powerful AI technology with us into the company as a cornerstone and a start. If I shall pick one isolated success factor going forward, I would say, the team. As mentioned already now, we are + 15 professionals plus consultants within the organization working with full speed towards the opening of our Center of Excellence lab in Stockholm.
Yeah. It's all about the team. You know, we're talking about R&D going forward. We're talking about the sales internationally. Without a good team, you know, it wouldn't work.
Sure, sure. You can add medical professionals. You can add laboratory operation expertise and so on.
Yeah.
For sure, but the team is what's gonna make this become real.
Yeah. Back to you, Ola. You delivered a record quarter in the fourth quarter last year.
Yeah.
Will that continue?
We sure did.
Will that continue?
It will. You will probably ask why.
Yeah. Exactly. Why?
Yes. I see this is gonna happen because of three things. Number one is we have a very solid customer base, and we work with a lot of customers, but the main thing is we work with the largest customers or many of the largest customer in the market, which provides us with a base which we then can grow upon. That's number one. Number two is that due to the spin-off here, we can actually have a full focus with our R&D, with our product portfolio. Everything can focus on what would we do best, which is the image quality business. That's what we can focus on, and we can then couple the 35+ years of experience with the latest AI and machine learning.
Those coupled together is really gonna help us move forward.
Yeah.
Last but not least, and coming back to Fredrik's point, is, I mean, it's all about the team. I mean, we have a great team together, and those three things is really gonna make the difference and is gonna make us continue on the growth path.
Yeah. Well, exciting times for both companies.
Yeah.
Thank you, Ola. Thank you, Fredrik. Good luck.
Thank you very much.
Thank you.