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C-RAD AB – Interim report January-March 2018

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CONTINUED STRONG GROWTH, REVENUE INCREASED BY 31 PERCENT

JANUARY - MARCH 2018                                                   

  • Order intake: 50.6 (40.2) MSEK, 26%.
  • Revenues: 33.8 (25.8) MSEK, 31%.
  • Operating profit: -4.7 (-5.7) MSEK.
  • Net results after tax: -4.9 (-5.8)
  • Result per share: -0.16 (-0.20) SEK.
  • Order for GEMini Portal Imaging Detector from HGPT Beijing Technology & trade Co. Ltd., order value 1.5 MSEK.
  • Order from Varian Medical Systems regarding equipment for Nya Karolinska Solna, Sweden, additional order value 6,7 MSEK.
  • Order of Catalyst HD for proton therapy from Protonen Therapie Centrum in Maastricht, the Netherlands, value 3 MSEK.

Comments from Tim Thurn, CEO:

STRONG START TO THE YEAR 2018

After a successful 2017, the first quarter in 2018 indicated again the strong interest from customers for C-RAD’s cutting edge surface tracking solutions. We are starting the year with a strong first quarter; characterized by significant growth both in order intake and revenue. This is result of our investments in building up a stronger organization to support continuous growth. It is the eighth consecutive quarter that C-RAD is showing order intake and revenue growth on a year over year sight.

Revenue in the quarter increased with about 31 percent from SEK 25.8 M compared to the first quarter 2017. Driven by many medium sized projects order intake increased by 26 percent to SEK 50.6 M year over year, despite that Q1 generally is the weak quarter of the year. With the current pace and repetitively order intake exceeding revenues, we continue to build a solid order stock for the future. During the last 12 months order stock grew from approximately SEK 100 M to SEK 155 M at the end of March 2018. This indicates sales will continue to grow going forward. Following our previous communication, we have increased our efforts in product innovation in order to strengthening our offering, as well as further invested to build up a higher performance sales and service organization. This explains the moderate increase in personnel cost during the first quarter. The consistent execution of our strategy has yielded a progressive development in strong order intake and revenue, a stable gross profit margin of approximately 58 percent and an impressive growing order stock. Based on this development we will further strengthen our position in the market and we continue to expect further growth.

During the first quarter C-RAD received several important orders: At the end of the first quarter C-RAD received an additional order to equip Nya Karolinska Solna (NKS), with our latest SIGRT (Surface Image Guided Radiation Therapy) solution. The preparations for the installation have been started and the first systems are expected to be installed during the second quarter this year. We are very much looking forward to continuing to work with the team at NKS, to make a successful installation and by that help to improve cancer care in the region. We are proud to have the opportunity to implement our technology in this prestigious cancer center and to build up a relationship for future cooperation and a reference site in this state-of-the-art hospital in Stockholm.

A strategic agreement with ZON-PTC, a MAASTRO CLINIC company, in Maastricht, Netherlands was signed in March. The two objectives of the cooperation are: the procurement of the C-RAD Catalyst PT system and a joint development based on the C-RAD system to optimize integration to their compact proton therapy system and to have built-in support for this very special treatment in proton therapy. Based on the cooperation, C-RAD is aiming for a universal solution that supports systems and workflows for various proton therapy vendors. The success in this project underlines the value and the potential of C-RAD’s cutting-edge technology.

In February C-RAD signed an agreement regarding the procurement of C-RAD ‘s portal imaging detector – GEMini. As part of the agreement both companies intend to launch a clinical cooperation with Fudan University Shanghai Cancer Center for the purpose of building up a local reference site and to support the clinical implementation of GEMini in China. While this is certainly a very encouraging signal and of strategic importance for us, it is the sales of our Positioning products that will be the main contribution to the growth of C-RAD in the midterm.

To sum up, the first quarter extents our track record of achievements. Even though this is a very positive journey, we will also experience volatility between quarters. Customer recognize the development and continue to build up trust in C-RAD as a partner, which is providing together with the growing demand for our products the basis for our continuous growth, 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 26, 2018.

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