C-RAD AB – Interim report January-September 2017
Key events in the period July - September 2017
THIRD QUARTER 2017
· Order intake: 55.5 (28.2) MSEK, +97%.
o Elekta, New Karolinska Hospital, Sweden: 21 MSEK
o University Medical Center Freiburg, Germany: 7,8 MSEK
· Revenues: 33.2 (22.5) MSEK, +48%.
· EBITDA: -0.3 (-6.4) MSEK.
· Operating loss: -1.4 (-7.9) MSEK.
· Result per share -0.05 (-0.29) SEK.
· Positive operating cash flow 10,0 (-13,9) MSEK
Comments from Tim Thurn, CEO:
In the third quarter we continued to grow considerable with repetitive significant growth in order intake as well as in revenues. Order inflow doubled and revenue increased with sizeable 48 percent compared to the same period last year. This positive trend that is reflected in the results is in line with the fundamentals of our growth strategy and will continue to drive long term growth.
Looking to the aggregated development during 2017 orders developed with 103 percent and revenues with 64 percent. This is witnessing the increased demand in the market place for C-RAD´s innovative products and we continue to see these favourable opportunities in the market.
The strongest region measured in order intake was the EMEA region with a growth of over 300 percent. We received two large orders for two prestigious customers with a total value of 29 mSEK - one for a New Karolinska Hospital in Stockholm, Sweden and one from the University Hospital in Freiburg, Germany. The largest order in C-RAD’s history includes C-RAD’s cutting edge surface tracking technology as well as other products C-RAD is distributing for the newly built university hospital in Stockholm – New Karolinska Hospital.
The order back log doubled over last year and amounts to about 140 MSEK, out of which 100 MSEK related to Products and 40 MSEK related to Life Cycle Business (Service and support). 80 percent of the order back log for Products is normally realized as revenues within 12 months, while the service contracts cover a period of 5 years in average and the expected revenues for the coming 12 months is 6,0 MSEK.
Growing revenues, a high gross profit margin of 59 percent, and a stable cost structure, led to a significantly improved EBITDA result compared to the same period last year. By the investments made in developing an international sales force and to strategically expand the sales organization, the third quarter showed a positive operating cash flow.
In September C-RAD participated at the annual conference of the American Society for radiation Therapy and Oncology (ASTRO) in San Diego. Customers had the opportunity to experience the existing C-RAD products, but also two new products that we presented to our customers for the first time. cPatient is an additional technological innovation, an optical system that allows to verify the patient based on facial recognition prior to treatment. This is another leap to make treatments safer. The second product cConnect is an online service platform to increase the uptime of systems at the customer based on predictive service analysis.
It is a very encouraging development C-RAD has taken during this year. I believe the progress is a very positive signal of a long-term demand, at the same time individual quarters might show volatile results moving forward. The fundamental driver for the development is the increasing awareness of the need for accurate patient positioning solutions in the radiation therapy market. From the broad acceptance of the C-RAD solutions and the positive impact on the treatment quality, patients are the one benefiting most. C-RAD has a very good position and is serving the cancer centers with a well proven, innovative solution advancing cancer care, says Tim Thurn, CEO of 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 email@example.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 October 27, 2017.