C-RAD AB – Consolidated interim report Jan - Sept 2015 [Update]
Key events in the period January-September 2015
- Net sales: Jan-Sept 45.7 (34.6) MSEK, +32%
- Order intake: Jan-Sept 61.5 (43.8) MSEK, +40%
- Operating loss: Jan-Sept -14.3 (-8.9) MSEK
- Net results per share: Jan-Sept -0.71 (-0.13)
- C-RAD signed contract with Skandion Clinic
- C-RAD announces connectivity between its Catalyst surface tracking technology and Varian’s TrueBeam® platform
- C-RAD acquires all outstanding shares in Cyrpa International
- Order secured from hospital in Norway for three C-RAD systems
- Order secured from Italy for eight C-RAD systems
[Update: In the previous press release for the interim report Jan – Sept 2015, published 15:30, November 6, 2015, Operating loss in the period Jan-Sept 2015 was wrongly reported as -7.0 MSEK, correct is -14.3 MSEK.]
Comments from Tim Thurn, CEO:
We are excited to see the continuation of a very positive growth trend at C-RAD and very good exposure for the product portfolio in our core markets, including through partner channels. Order intake for the first three quarters for our largest business segment – positioning products, including Catalyst and Sentinel products – increased by 62% to 45.7 MSEK; for service products it precisely doubled to 6.8 MSEK, reflecting a strong interest in value-added products.
The overall increase in orders at the Group level was 40%, for a total of 61.5 MSEK. Third-quarter revenues were up 47% on Q3 2014, at 15.4 MSEK. The momentum we gained during the third quarter is expected to accelerate in the fourth quarter, also reflecting the expanded reach of our sales force.
For Skandionkliniken in Sweden - the first proton therapy facility in Scandinavia, we participated in a complex public tender that had been contested, but ultimately resolved in C-RAD’s favor, yielding two orders to an order of four systems with options for two more. The first system was installed in October – our first ever in the rapidly developing proton and particle therapy market. The remaining systems are also expected to be commissioned in Q4 2015.
The third quarter kicked off with completion of the acquisition of Cyrpa, the Franco-Belgian group with innovative laser solutions for patient positioning and virtual simulation within radiation therapy. Cyrpa was consolidated from an accounting perspective during the third quarter. As a first step the joint sales force was restructured to further leverage respective market strengths. While responsibility for the two product lines remains separate, the merged sales force is deployed in an efficient way that will yield new synergies in reaching customers.
GE Healthcare entered into a sales and distribution agreement for C-RAD’s Sentinel 4DCT™ systems and Cyrpa High Impact Technology (HIT) laser systems. GE will offer these solutions through its price book from Q4 2015 on, making them available to the GE salesforce and their customers worldwide. The C-RAD team will train the GE Healthcare sales force in the US, providing the necessary advanced technical knowledge.
A procurement agreement with Yale-New Haven Hospital in Connecticut, USA, resulted in a multi-site purchase order to supply surface tracking technology. Four systems have been ordered; two systems are already up and running and the others are scheduled for installation in Q4 2015. For C-RAD it is a good opportunity to use Yale-New Haven Hospital as a reference site for clinical demonstrations of Sentinel 4DCT and Catalyst HD.
An order was received from the Campania region in southern Italy for four Catalyst™ systems as well as four Sentinel™ 4DCT systems, to be installed in three cancer treatment clinics. Delivery is scheduled for Q4 2015.
C-RAD conducted its first user meeting in conjunction with the American Society for Radiation Oncology (ASTRO) meeting in October in San Antonio, Texas, USA, with over 30 participants from around the world, mainly the US. The meeting was conducted in cooperation with the University of Texas Health Science Center San Antonio, which contributed its clinical and scientific input on breast cancer treatment and stereotactic treatments, and also hosted a site visit where Catalyst HD was installed and clinically operational. At the ASTRO trade event, our increased exposure in the market led to a very high interest in the C-RAD booth and portfolio, achieving 50% more customer leads than the previous year.
For Gemini, our focus on recent developments was to improve robustness of the system, which has proved to be successful, accompanied by even further improvements in image quality. This takes us into a new phase, in which we are evaluating the physical parameters against existing standards and competitive products. On the commercial side discussion with potential customers are ongoing.
We have entered Q4 with a strong showing, where we expect to see our investment in an expanded sales force to continue to bear fruit, which should reach its full yield in 2016.
C-RAD develops innovative solutions for use in advanced radiation therapy. The C-RAD group offers products and solutions for patient positioning, tumor localization and radiation treatment systems. End users are radiation therapy clinics worldwide. All product development is conducted in three fully owned subsidiaries: C-RAD Positioning AB, C-RAD Imaging AB and C-RAD Innovation AB, all of which are located in Uppsala, Sweden. Employees currently number 40. C-RAD’s business originates from research and development at Karolinska Institutet in Solna, Sweden. Sales of the company’s first product, the C-RAD SentinelTM, started in 2007. Cooperation agreements have been signed with Elekta (Sweden), Varian (USA) and IBA (Belgium). C-RAD is represented by distributors specialized in radiation therapy on major markets. C-RAD has established three companies for direct sales: C-RAD Inc. in the US, C-RAD GmbH in Germany and C-RAD WOFE in China. Cyrpa International SPRL, a Franco-Belgian laser company, is a wholly owned subsidiary whose operations are being integrated. C-RAD AB is listed on NASDAQ Stockholm.
For more information on C-RAD, please visit www.c-rad.com.
For further information:
Tim Thurn, CEO C-RAD AB, Phone +46-18-666931, E-mail firstname.lastname@example.org