Senzime (SNZZF) Q2: Costs Down 15%, EBITDA Up 27%, Philips Deal

Senzime reported a 15% drop in operating expenses and a 27% improvement in EBITDA in the second quarter, even as revenue stayed flat. Cash flow improved 46%. The company called the results a sign of progress on fundamentals while the U.S. market for new monitor sales remains challenging.

Sensor utilization grew strongly during the quarter. U.S. monitor sales have been under pressure for the past six months, though the company noted some improvement.

The bigger news came from a separate announcement. Senzime signed a partnership with Philips to jointly develop a portfolio of products using each company's proprietary technology. Senzime will lead development and manufacturing. The company described the deal as the most important commercial agreement it has signed and the result of a decade of work in innovation and market access. Product details remain confidential until launch.

The CEO said the partnership validates Senzime's technology. The company ended the quarter with a 46% cash flow improvement and lower costs, giving it more runway as it contends with the U.S. monitor sales slump.