Feedback plc (LON:FDBK) expects to see a substantial increase in revenue from its TexRAD software in the second half of the current financial year.
The medical imaging firm has previously reported a significant number of purchase orders for research versions of TexRAD in the first half of its current financial year (i.e. to the end of November), but investors hoping this would show through immediately in the interim results were disappointed.
The majority of the installations were done just before the end of the reporting period so the sales made only a modest contribution to revenue.
Nevertheless, Feedback trimmed its half-year loss before tax to £130,000 from a loss the year before of £155,000 on revenue that dipped to £204,000 from £225,000.
“We are encouraged by the continued strong interest shown in TexRAD and the number of research papers being published, which highlight its numerous potential applications, particularly in areas such as liver, prostate and adrenal cancers,” the company said.
“We are seeing new opportunities in Asia to make further sales of TexRAD research versions by partnering with companies with a strong local presence. In addition to the TexRAD sales, Feedback is well placed to grow its revenues through the collaboration with Future Processing and the development of a CE marked product for analysis of lung PET/CT images,” it added.
Future Processing is a software development service provider based in Gliwice, Poland, and it is working with Feedback’s Cambridge Computed Imaging (CCI) unit on the development of medical imaging software.
Feedback's assistance has resulted in another successful EU grant application made by Future Processing. The directors of Feedback consider that by CCI working jointly with the Future Processing healthcare team, CCI's product portfolio can be updated and improved and new products developed more rapidly including further applications for TexRAD.
Under this collaboration with Future Processing, the company is currently making substantial savings in software development costs although there could be some strategic advantage in re-establishing some UK-based software development capability, it ventured.
“After several years of relying on very limited resources we have plans to invest in product development, regulatory and marketing resource to step up our activity and take full advantage of our very positive growth prospects. We are excited by the developments in our marketplace in machine learning and artificial intelligence applied to medical images. We have extensive experience in machine learning and the prospects of combining TexRAD with other companies' proprietary technologies could lead to exciting opportunities,” the statement concluded.
The shares were off 0.17p at 1.95p in mid-morning trading.