C-RAD AB – Interim report January-March 2017

• Net sales: Jan-Mar 25.8 (17.3) MSEK, +49%
• Rolling 12m 91.1 (68.2) MSEK +33.6%
• Order intake: Jan-Mar 40.2 (13.0) MSEK, +209%
• Rolling 12m 140.7 (79.0) MSEK +78%
• Operating loss: Jan-Mar -5.7 (-8.2) MSEK
• Net results per share: Jan-Mar -0.20 (-0.39)
• Large order from Miami Cancer Institute, order value 7,5 MSEK

Comments from Tim Thurn, CEO:

Order intake for positioning products increased with 300%

Both order intake and revenue growth continued to develop strongly and showed an all-time high for the first quarter in C-RAD’s history. On a rolling 12 months sight, April 2016 – March 2017, order intake increased with 78% to 140,7 MSEK compared to 79,0 in the corresponding period 2015/2016.

During 2016, we noticed a favorable change in the market that developed into an increased demand. At the same time, we worked on setting up stronger sales organizations in our core markets. The efforts resulted into a substantial increase in order intake and revenues during the second half of 2016. Looking at the first quarter this year we can see that this positive trend has continued.

The order intake on a group level increased with sizeable 209% to 40.2 MSEK. The large order from one of the world’s largest cancer centers – University of Texas MD Anderson Cancer Center in Houston, Texas – was an encouraging start for the year. The North American market, that is representing approximately half of the global radiation therapy market, was the strongest region. C-RAD received orders totaling to 25 MSEK during the first quarter. Even though this was an all-time high, the market indicates significantly high demand and has a high unexploited potential for the C-RAD product portfolio. Despite the usual seasonality in the region EMEA and APAC, with moderate order intake in the first quarter and a strong fourth quarter, we achieved solid results with an increase of approximately 60% in order intake.

Looking at the different segments, the sales of our main product line – Positioning products – has in the period increased from 8 MSEK to 32,1 MSEK compared to the same period in 2016. I consider this impressive growth of 300% primarily to be a confirmation of our strategy and that our attractive product portfolio, in combination with the growing demand for C-RAD’s surface tracking solution for patient positioning, will continue to drive sustained growth.

Following the positive order intake development during the second half last year, revenues have increased during the first quarter with 49% to 25,8 MSEK. 

Our actions to optimize the supply chain resulted in an increase of the gross profit margin to 60%. Since end of March manufacturing of all products is handled by specialized external contract manufacturer in Sweden and Finland. With the new setup, we are prepared to scale up manufacturing as needed.

In line with our expectations the results were achieved with essentially unchanged fixed costs relative to the fourth quarter last year. In 2017 we expect the fixed costs not to increase to the same extent as in 2016. The cash flow during the period showed a positive result, following the implementation of a financing solution.

We are proud on the achievements and will continue to consequently execute on our strategy as it will give C-RAD a strong platform for accelerated development in future quarters. We have a highly qualified and strong organization to support this development. Whereas individual quarters might be volatile, the market acceptance is giving positive signs for substantial growth moving forward, 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 April 28, 2017.