C-RAD AB - Interim report January – March 2020

GROWTH AND POSITIVE RESULT DESPITE TURBULENT QUARTER

FIRST QUARTER 2020     

• Order intake amounted to 47.7 (47.8) MSEK, -3% in constant currencies
• Order backlog amounted to 261.5 (201.2) MSEK
• Revenue amounted to 51.8 (47.3) MSEK, corresponding to a 10% growth (7% in constant currencies)
• Operating profit amounted to 1.0 (1.2) MSEK, corresponding to a margin of 1.9 (2.5) %
• Net results after tax amounted 0.4 (0.8) MSEK
• Result per share amounted to 0.01 (0.02) SEK

Comments from Tim Thurn, CEO

The first quarter of 2020 generated solid results, despite being a period where unexpected events played a role. A positive momentum from last year was negatively impacted by the quick and unforeseen spread of Covid-19. The pandemic affected our business in China early in the year, later in the quarter also in Europe and especially in North America.

In total we succeeded to keep order intake approximately at the same level as previous year with 47.7 (47.8) MSEK, but with variations between the regions. I want to highlight that order intake on group level in our largest segment – positioning products - grew with 25 percent year over year. This reflects the positive momentum, despite an ongoing pandemic, that we see in the market for equipment for high precision radiation therapy. Order intake in EIMEA and APAC grew with 34 percent and 30 percent respectively, which is a very encouraging result and again underlining our early assessment of the growing interest in our technology. The restrictions in North America related to Covid-19 had a significant negative impact on order intake in that region with a decrease of 78 percent. 

Revenue grew with 10 percent compared to the first quarter 2019. Despite the lockdown in major European markets several deliveries in the region were made during the quarter, however in many cases installations were not finalized or started as planned. Hence, we foresee a backlog of deliveries after the respective countries release their restrictions. The time window to deliver to China and North America was very short during Q1, therefore deliveries to those regions were not in line with our expectations, and thus not revenue. However, the total region Americas generated a strong double-digit growth due to significant deliveries in Latin America.

Given the turbulent circumstances I am pleased to present a positive operating income of 1.0 (1.2) MSEK for the quarter. We are actively working to reduce our cost base in order to be prepared for a period of lower demand due to the pandemic. The company has a solid cash position, allowing ourselves to take reasonable measures to mitigate the uncertain and yet unknown consequences that Covid-19 will bring on our business.

We have released our new products Catalyst+ and cAccessory, with shipments made already during the first quarter. Catalyst+ offers enhanced application flexibility and significantly higher performance to our clinical user, compared to the previous generation of Catalyst. cAccessory is a module incorporated in the C-RAD c4D software platform to validate correct patient immobilization. With this feature in place, C-RAD now offers a comprehensive suite for motion management and integrated modules for workflow management.

Covid-19 is affecting the global economy and therewith also C-RAD’s operations, wherefore the coming quarters are expected to be volatile. We have taken precautions to limit the short-term impacts both on the business, in terms of sales and supply activities, and on the financial side in terms of controlling and reducing our cost base. Beyond the implications of Covid-19, our assessment is unchanged that surface tracking is on its way to become standard of care in advanced radiation therapy, where C-RAD is in an excellent position to supply the market with cutting-edge technology.

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 (Shanghai) Medical Devices Co Ltd. 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 http://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 May 6, 2020.