C- RAD AB (Publ), Half-year report 1 January - 30 June 2013

Key events during the period

• Net Sales for the period amounted to SEK 16.4 M (9.8)
• EBITDA were SEK -12.7 M (-10.1)
• Loss after tax was SEK -16.3 M (-12.7)
• Order back log amounted to SEK 12.6 M (16.7)
• Order entry was SEK 18.6 M (14.4)
• Earnings per share before dilution were SEK -0.96 (- 0.80)
• Equity ratio was 65 % (57 %)
• Cash amounted to SEK 20 812 M (10 596)
• At the end of the period the number of employees amounted to 28 (21)
• C-RAD has signed a cooperation and distribution agreement with ScandiDos for the North American Market
• Expansion of the direct sales force in DACH and US
• Sales success with new laser products in Malaysia
• Orders of Catalyst and Sentinel systems for the US Market
• C-RAD signed an agreement to acquire the Belgian company 29 percent of Cyrpa International SPRL with subsidiaries and obtained an option to acquire the remaining 71 percent
• The acquisition of Cyrpa is financed by a rights issue
• Elekta and C-RAD signed an development- and distribution agreement for respiratory gating in radiation therapy
• Agreement was signed with Cablon Medical to develop and sell an integrated solution for use in dosimetry and portal imaging. Cablon Medical is getting the right to sell integrated solutions in the BeNeLux countries.

Key events after the period

• Tim Thurn was appointed as CEO of C-RAD AB
• Successful testing of Catalyst Gating Interface
• First orders of the newly developed C-RAD/Cyrpa System
• Good clinical image quality on the chest region with GEMini detector

Comment by the CEO, Tim Thurn:

“The first half of 2013 showed a positive development of the operations. We increased the order intake by 30 percent and the revenue by 30 percent compared to the same period in the previous year. This positive trend has continued in the current quarter.

The increase in costs is mainly caused by three parameters: The investments for the acquisition of the French/Belgium Company Cyrpa, the costs connected to the change of listing to NASDAQOMX Nordic and the strategic expansion of the group.

The newly developed version of the Gemini Detector shows good results for clinical images in the cheats region. The effectiveness of the implemented changes has been shown. The quality of the clinical images from the in the pelvic region however requires further refinements.

C-RAD took important steps during the current year to develop the organization for a successful future:

• With the investment in Cyrpa, C-RAD offers a broad product spectrum as well as it leads to a more efficient sales force. The first orders synergies have been presented within four months after the investment. Important for the organization are also the synergies between the two products. A common software platform has been developed to answer the customer’s demand for simplification and workflow optimization. The combination of both product lines makes C-RAD an even more attractive partner for clinical end customers and OEM partners.
• The market has shown that the C-RAD product line is attractive and fully accepted by the clinics. Therefore the focus was to expand the sales presence on the core markets. C-RAD increased the sales force in the US, through new employments and the strategic partnership with ScandiDos. Now both companies together are represented with seven persons in sales and support, which allows C-RAD to be closer to the customer.  Sales in the US is slowly ramping up again after a weak 2012.
• The cooperation with Elekta is developing according to the schedule. An important milestone was the successful test in Kuopio. The next step will be the joint validation. All necessary items have been planned and will be performed in close cooperation between C-RAD and Elekta. After the successful validation Catalyst and Sentinel will be listed in the Elekta price book. The gating interface from Elekta has already been released.

I am looking forward to a successful second half of the year 2013.”