A change in revenue recognition policies contributed to a significant decrease in revenue for orthopedic imaging technology developer EOS Imaging in the first quarter of 2019.
For the period (end-March 31), EOS had revenue of 2.6 million euros, down 72.6% from the 9.5 million euros reported in the first quarter of 2018. The company noted that it has decided to implement new sales agreements to better meet customer expectations and evolving industry practices. As of this year, direct sales agreements for EOS systems will include a transfer of property after installation, at which time the revenue would be recorded. Given the average delay of three to 12 months between shipment and installation of EOS systems, 2019 revenue will likely be significantly affected by this change, the vendor said.
EOS also reported its financial results for 2018. For the year (end-December 31), the company had annual revenue of 35.4 million euros, down 4.6% from the 37.1 million euros recorded in 2017. Although the company experienced a year-end commercial slowdown, it still reached the milestone of installing its 300th system, EOS said. Recurring revenue grew 26% during the year, driven by a 33% increase in maintenance contract revenues. EOS had a net loss of 13 million euros, however, compared with a net loss of 7.8 million euros last year.
