C-RAD AB – Consolidated Year-End report January-December 2017

POSITIVE RESULT FOR THE FOURTH QUARTER 2017

Key events in the period October - December 2017

FOURTH QUARTER 2017                                                   

• Order intake: 47.5 (41.9) MSEK, +13%.
• Revenues: 42.0 (27.3) MSEK, +54%.
• Operating profit: 1.1 (-4.4) MSEK.
• Net results after tax: 0.8 (-4.6)
• Result per share: 0.03 (-0.16) SEK.

Comments from Tim Thurn, CEO:

We delivered another solid quarter and a strong finish to the year with significant growth in revenue, an operating profit and a significant increase in order intake compared to the same period in 2016. The result is confirming our previous assessment of an increasing demand in the market for the C-RAD technology and products.

The revenue has in the period increased with about 54 percent compared to the fourth quarter 2016. This is the highest ever in C-RAD´s history. In the quarter, order intake for Positioning products grew with 34 percent, and total order intake grew with 13 percent compared to the prior fiscal year fourth quarter and was about on the same high level as during previous quarter. The total number of purchase orders received has increased strongly during the fourth quarter – considering no large orders (> SEK 7,5 million) were booked. During the third quarter, two large projects accounted for two thirds of the quarterly order intake. The considerable increased number of smaller orders, primarily from new customers, is confirming the high demand for our products.

With an impressive gross profit margin of 60 percent in the fourth quarter, we present a positive operating profit of SEK 1.1. Approximately matching order intake and revenue resulting in an almost unchanged order book of SEK 98 million for product sales and about SEK 42 million for service contracts.

Looking at the results for the fiscal year 2017: order intake grew with 70 percent to SEK 193 million and revenues with 61 percent to SEK 133 million. The strongest region measured in order intake across the full year was the EMEA region with growth of 69 percent to SEK 100 million. Both North America and APAC grew significantly with 67 percent and 74 percent respectively. During the year we strengthened our position in the market and we continued to deliver on our strategic growth priorities.

Looking ahead into 2018, we are intending to further invest in our sales and service organization as well as in R&D. With the current orderbook and continued acceptance of our technology in the market place there is a need to invest for the future. This will create a manageable cost increase. We are convinced this will drive future growth by an even stronger sales organization as well as ensure C-RAD to stay ahead of the competition with cutting-edge technology.

The great progress C-RAD made in 2017 is very much encouraging and I am really pleased with our overall results. We executed well, and we experienced a strong demand and growth of our products in essentially all major markets. We also witnessed volatility across different markets and quarters as we will continue to see during 2018. 

Moving into 2018 we remain fully committed to our growth strategy. We continue to see an interest in our products in an overall growing market. This means we will help to cure more cancer patients and improve their quality of life. With a continuously improving organization and our great team as well as the important investments we plan for this year, I´m having a great confidence that we will see continuous solid growth in 2018, says Tim Thurn, CEO of C-RAD. 

About C-RAD

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. 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. 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 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 +46-18-666930, Email investors@c-rad.com

This information is information that C-RAD AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication at 08:30 CET on January 31, 2018.