C-RAD AB – Interim report July-September 2016

Key events in the period July-September 2016

• Net sales: Jul-Sep 22.5 (15.4) MSEK, +46%
• Rolling 12m 75.5 (64.3) MSEK +17%
• Order intake: Jul-Sep 28.2 (23) MSEK, +23%
• Rolling 12m 98.3 (86.1) MSEK +14%
• Operating loss: Jul-Sep -7.9 (-7.0) MSEK
• Net results per share: Jul-Sep -0.29 (-0.33)
• Bill Dowd appointed president of US subsidiary C-RAD Inc.
• Lars Nyberg was elected as new Member of the Board and as Chairman of C-RAD.
• First order from Belgium for C-RAD systems, order value 6.1 MSEK.

Comments from Tim Thurn, CEO:

Record order intake for U.S. subsidiary

Supported by the all-time high order intake during the second quarter we are presenting a new all-time high in revenue during the third quarter: sales increased with 46% to 22.5 (15.4) MSEK. The order intake is amounting to 28.2 MSEK which is an increase of 23% or 5.3 MSEK compared to the same period in 2015.

Success through all our three sales channels: the strongest development measured in order intake showed the U.S. market through our direct sales organization. Here we see an increase of 380% to 15.0 (3.9) MSEK. Notable orders came from two university sites that decided to equip several sites with the C-RAD solution for gated treatments but also for so called radiosurgery (SRS-treatments). Another success was the first project for C-RAD in Belgium, that resulted in an order for several Catalyst, Catalyst HD and Sentinel 4DCT systems, through our local distributor. C-RAD is working on further developing the sales channel through our industrial partner. We have received the first two orders through General Electric. The increasing order intake is indicating the confidence customers have in C-RAD and confirm that our expansion of the sales force is successful.

The gross profit margin for the first three quarters has increased from 53% in the previous year to 56% in 2016. C-RAD is continually working on the optimization of the supply chain and these measures are providing the foundation for long-term profitable growth. The Q3 results give first evidence of the positive impact.

In the law suit between Beamocular and C-RAD, the responsible Patent- and Market Court in Stockholm rendered a judgement and confirmed, that the rights of the disputed patent belong to C-RAD. The appeal period will end on November 17.

I am happy to welcome Svea Ekonomi AB as a solid and valued investor as a C-RAD shareholder. Svea Ekonomi is an independent financial group with operations in many European countries. This step is strengthening our investor base with long term oriented, institutional investors. Pending on the shareholders’ approval, Lars Nyberg will purchase another 600.000 shares. Both actions improves the cash position in the company with approximately 21 MSEK and prove that the C-RAD business is attractive to investors.

Now we are in the middle of the fourth quarter. For us it means “all hands on deck” and focus on the result before New Year’s Eve, founding a solid base for continued growth in 2017. 

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

The above information is price-sensitive and must therefore be disclosed pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on November 14, 2016, at 08.30 CET.