ScoutCam Announces $1.45 Million Order to Provide Miniature Camera Solution to Leading Fortune 500 Multinational Healthcare Corporation

Rhea-AI Summary

ScoutCam (SCTC) announced a $2.5 million order from a top US-based orthopedic healthcare corporation for its advanced video technologies, to be integrated into a minimally invasive surgical device. This FDA-cleared device aims to enhance surgical performance and safety by offering superior visibility and reducing the need for traditional microscopes. The partnership is expected to result in significant future revenue growth, with additional multiples of the initial order anticipated in subsequent years. CEO Yehu Ofer highlighted the collaboration's potential to transform orthopedic surgeries.

Positive

• $2.5 million order received from a Fortune 500 orthopedic healthcare customer.
• Potential for substantial revenue growth with multiples of the initial order expected in future years.
• FDA clearance of the new minimally invasive surgical device leveraging ScoutCam's technology.

Negative

• Dependence on a single Fortune 500 customer for a significant revenue stream could pose risks.
• Challenges related to regulatory approvals and potential product delays may affect future performance.
• Reliance on third parties for manufacturing and product components increases vulnerability.

Omer, Israel, Jan. 26, 2023 (GLOBE NEWSWIRE) -- ScoutCam (OTCQB: SCTC), a leading provider of Predictive Maintenance (PdM) and Condition Based Monitoring (CBM) solutions, today announced that it has received an order from a leading orthopaedic, US-based healthcare corporation to leverage ScoutCam's proven video technologies and products into a first-of-its-kind, FDA cleared minimally invasive surgical device. Total revenues from miniature camera solution sales to this Fortune 500 customer are expected to amount to $2.5 million in 2023 and additional multiples of this amount in years to come.

"We are thrilled to partner with a like-minded company that brings ongoing innovations to deliver the highest quality medical device systems to patients worldwide”, said Yehu Ofer, CEO of ScoutCam. “The system, which utilizes ScoutCam’s micro video-based sensors, enables an expanded visibility that is vital to increase safety, lower downtime and provide insights to enhance surgical performance. This advanced visualization experience operates digitally and can reduce the requirement for a microscope to allow for a view of the surgical site. This top-notch medical device system has the capability to change orthopaedic surgeries.”

About ScoutCam

ScoutCam is pioneering the Predictive Maintenance (PdM) and Condition Based Monitoring (CBM) markets with its visualization and AI platform. Providing video sensor-based solutions for critical systems in the aviation, transportation, and energy industries, ScoutCam leverages proven visual technologies and products from the medical industry. ScoutCam’s unique video-based sensors, embedded software, and AI algorithms are being deployed in hard-to-reach locations and harsh environments across a variety of PdM and CBM use cases. ScoutCam’s platform allows maintenance and operations teams visibility into areas which are inaccessible under normal operation, or where the operating ambience is not suitable for continuous real-time monitoring.

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, but not limited to, expectations about future orders by the Fortune 500 corporation. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. Those statements are based on information we have when those statements are made or our management’s current expectation and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to the following: (i) market acceptance of our existing and new products, including those that utilize our micro ScoutCam^™ technology or offer Predictive Maintenance and Condition Based Monitoring applications, (ii) lengthy product delays in key markets, (iii) an inability to secure regulatory approvals for the sale of our products, (iv) intense competition in the medical device and related industries from much larger, multinational companies, (v) product liability claims, product malfunctions and the functionality of ScoutCam’s solutions under all environmental conditions, (vi) our limited manufacturing capabilities and reliance on third-parties for assistance, (vii) an inability to establish sales, marketing and distribution capabilities to commercialize our products, (viii) an inability to attract and retain qualified personnel, (ix) our efforts obtain and maintain intellectual property protection covering our products, which may not be successful, (x) our reliance on single suppliers for certain product components, including for miniature video sensors which are suitable for our Complementary Metal Oxide Semiconductor technology products, (xi) the fact that we will need to raise additional capital to meet our business requirements in the future and that such capital raising may be costly, dilutive or difficult to obtain, (xii) the impact of pandemics, such as COVID-19 (coronavirus) and (xiv) the fact that we conduct business in multiple foreign jurisdictions, exposing us to foreign currency exchange rate fluctuations, logistical, global supply chain and communications challenges, burdens and costs of compliance with foreign laws and political and economic instability in each jurisdiction. These and other important factors discussed in ScoutCam’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 30, 2022 and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Except as required under applicable securities legislation, ScoutCam undertakes no obligation to publicly update or revise forward-looking information.

Company Contact:
Tanya Yosef, CFO
tanya.yosef@scoutcam.com
Tel: +972 (73) 370 469

Investor Relations Contact:
Miri Segal
MS-IR LLC
msegal@ms-ir.com
Tel: +1-917-607-8654

FAQ

What recent order did ScoutCam (SCTC) announce?

ScoutCam announced a $2.5 million order from a leading orthopedic healthcare corporation.

How will the order impact ScoutCam's future revenue?

The order is expected to lead to significant revenue growth, with multiples of the $2.5 million anticipated in future years.

What technologies will be used in the new surgical device?

The surgical device will leverage ScoutCam's advanced video technologies and products.

What is the significance of the FDA clearance for ScoutCam's device?

FDA clearance allows ScoutCam's device to be used in minimally invasive surgeries, potentially transforming orthopedic procedures.

What are some risks associated with ScoutCam's new partnership?

Risks include dependence on a single client, regulatory hurdles, and reliance on third-party manufacturers.