C-RAD AB - Interim report April-June 2017
Key events in the period April - June 2017
SECOND QUARTER 2017
· Net sales: 32.2 (15.6) MSEK, +106%.
· Order intake: 49.3 (30.4) MSEK, +62%.
· EBITDA: -2.7 (-8.3) MSEK.
· Operating loss: -4.1 (-9.8) MSEK.
· Result per share -0.14 (-0.44) SEK.
· Agreement with Miami Cancer Institute, 7.5 MSEK.
· Agreement with two cancer centers in France, 9 MSEK.
· Positive verdict in patent case with Beamocular.
Comments from Tim Thurn, CEO:
C-RAD´s growth continued to develop strongly in the second quarter with an increase of more than 100 percent in revenues and 62% percent in order intake compared to the second quarter last year. This momentum is underlining the augmented demand for our leading technology, that we see in the market place.
During the second quarter, we delivered a new all-time high in revenues – a development from 16 MSEK in the first quarter of 2016 to sizeable 32.5 MSEK. In the same period order intake increased to from 30.4 MSEK to 49.3 MSEK.
The EMEA region showed a notable development during the second quarter, driven by a steady increase in most countries and an outstanding order from France. In this project, a private hospital group decided to equip all their linear accelerators with the C-RAD surface tracking solution. This project resulted in an order of 9 MSEK. This customer had already previously equipped their CT's with C-RAD's Sentinel 4DCT™ solution. It is a positive signal, that also existing customers are upgrading their C-RAD solution as they grow.
Looking at the different segments, it should be noted that our life cycle business – primarily the sales of services - was exceeding 13 MSEK in order intake. This is an increase of almost 400 percent compared to the same period previous year. The positive trend continues that more customers are considering service contracts for their products to cover hard- and software updates, spare parts and preventive maintenance for a period of in average 5 years. For new sales, often the customer purchases a service contract along with the system, whereas existing customers are upgrading their installed base. Service contracts are providing a stable recurring revenue stream over the entire term. Sales of our positioning products – our main product line - was exceeding 33 MSEK, whereas it was 25 MSEK in the second quarter 2016. All in all the order book increased to 118 MSEK providing a solid base for future revenues.
Our focus on cost control and the substantial increase in revenues has enabled us to deliver a positive increase in EBITDA. The gross profit margin improvements during the last quarters is contributing to this development.
In the beginning of the third quarter we received prestigious large orders for two well-reputed customers with a total value of 29 MSEK. Whereas this was certainly a very positive start, it shows at the same time that individual quarters might be volatile in order intake in our business.
The momentum and the strong growth we are having confirms our previous assessment of an increased market acceptance that translates into a growing demand for our advanced surface tracking solution. We continue to see a substantial potential in essentially all our markets. C-RAD continues to deliver on our strategy and is now a significantly larger business with higher growth rates, compared with a year ago, 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. The information was submitted for publication at 08:30 CET on August 16, 2017.