C-RAD AB (publ), Interim report 1 January- 31 March 2010
C-RAD AB (publ), Interim report 1 January- 31 March 2010
Key events during first quarter
- The detector system GEMini ED has been released for sale
- 6 Sentinel systems has been ordered by the Swedish Medical Center in Seattle,
USA
- IBA Dosimetry has ordered 1400 diode detectors to a value of 4,3 MSEK.
- 3 new employees have hired in sales, R/D and manufacturing
- The new share issue was oversubscribed by 35 %
- Since March 2010 the C-RAD B-share is listed at NASDAQ OMX First North Premier
- Bookings of 6 MSEK
- Net sales 2 779 kSEK ( 1 028)
- Profit after tax of - 1 608 kSEK (-2 569 kSEK)
- Earnings per share after tax of -0,16 SEK (- 0,27 SEK)
- Operating profit of -1 462 kSEK (-2 426 kSEK)
- Equity ratio of 72 % (76)
- Cash of 12 225 kSEK (9 777 kSEK)
- Numbers of employees were 19 (18).
Key events after the close of the reporting period
- A great interest for C-RAD Sentinel at physics meetings in Scandinavia
- New Agreements have been signed with distributors in India and China
- Clinical reports from reference sites in Italy and Sweden
- C-RAD is moving to larger facilities
Comments by Erik Hedlund, president of C-RAD AB.
“2010 has been challenging for C-RAD and its employees. Except for planned
activities for GEMini and Sentinel the IBA diode detector activities have been
integrated with the C-RAD group. New products have added to the program for
direct sales in Scandinavia. Bookings has during first quarter developed well.
In addition a share issue was carried out. The confidence shown by the
shareholders will make it possible to further push investments in marketing and
R/D. Larger markets will to a larger extent be supported by C-RAD sales
persons. The cooperation with partners will be pursued.”
C-RAD AB (publ)
Interim report
1 January- 31 March 2010
Figures in brackets refer to the same period of last year.
The board of Directors and the Managing Director of C-RAD AB (publ) hereby
present the interim report for the period 1 January - 31 March 2010.
The company
C-RAD is developing new innovative solutions for use in radiation therapy. The
group is offering products and systems for positioning, imaging and radiation
therapy of the patient. End users are radiation therapy clinics all over the
world.
The product developments are taking place in the fully owned subsidiaries C-RAD
Positioning AB, C-RAD Imaging AB and C-RAD Innovation AB. C-RAD Imaging AB is
located in the city of Östersund. The other companies are located in Uppsala.
Number of employees at present are 19..
The activities of C-RAD AB are originating from developments at Karolinska
Institute and the Royal School of Technology in Stockholm. They were outsourced
from 2001 to 2004.
The class B shares of the Parent Company C-RAD AB have since July 2007 been
traded at Aktietorget. 8 March 2010 trade of the C-RAD B- shares have been moved
to NASDAQ OMX First North Premier. Mangold Fondkommission has been appointed as
Certified Advisor of C-RAD.
Key events during first quarter
- GEMini ED mainly for use in MV has been released for sales. The develop-ment,
that started in 2005, has technically been very challenging for the C-RAD
Imaging employees. The technology is offering unique performances regarding
energy range, frame rate, image quality and radiation resistance.
- Swedish Medical Center in Seattle, USA has placed the so far largest order of
Sentinel systems. 6 systems will be installed during second half of 2010. The
order is a result of the cooperation with Elekta.
- Since January 2010 C- RAD Imaging AB is responsible for the manufacturing and
the further development of the IBA diode detector program.
For 2010 orders of 1400 diode detectors to a value of 4,3 MSEK was placed by
IBA.
- As a result of the agreements with IBA three new employees have been hired.
Two of these employees are working with the manufacturing and the further
development of detectors. One sales person has been hired to sell C-RAD systems,
IBA dosimetry program and a safety system to radiation therapy clinics in
Scandinavia.
- In March 2010 a new share issue was carried out. The interest was great and
the new share issue was over subscribed with 35 %. The board decided to fully
use the authorization decided by the annual assembly. Shares to a value of 30,2
MSEK were subscribed, thereof 12,4 MSEK as a new share issue with preferential
rights and 17,8 MSEK as a directed share issue. In addition Norrlandsfonden took
the decision to defend its position by signing a convertible of 1, 8 MSEK.
- Since 8 March 2010 the C-RAD B-share is traded at NASDAQ OMX First North
Premier. This segment is intented for companies with accounting according to
IFRS and with the objective to be listed on the main list.
Key events after the close of the reporting period
- C-RAD Sentinel was presented at physics meetings in all Scandinavian
countries. The interest of the C-RAD solutions to secure high precision in
radiation therapy was great.
- To strengthen sales in the US a C-RAD sales manager has been employed. The
cooperation with the present distributor ROS and the service company
Acceletronics will continue.
- Since the cooperation with the German company LAP until further notice has
been discontinued agreements have been signed with distributors for the fast
growing markets in India and China. Rosalina, is a company specialized in
radiation therapy, will promote the C-RAD program in India.
Kanglida with head quarter in Beijing will promote the C-RAD activities in the
northern and central parts of China.
- An important and necessary mean to support the C-RAD activities are clinical
data and reports. Two clinical reports were published. A first study was by
clinicians of the University Hospital in Lund, Sweden presented at a Tomotherapy
user`s meeting. The report is, when working with the Sentinel system, showing
major time savings, improved precision and lower dose to healthy tissue. The
second study, performed in Careggi, Italy, has been going on for a year and is
extensive. The study is showing improved precision and lower dose to healthy
tissue when using the Sentinel system.
- Mainly as a result of the agreements with IBA the C-RAD activities in Uppsala
will be moved to new facilities. Part of the space will equipped with
laboratories especially designed to meet the high requirements in radiation
therapy.
- The Sentinel backlog of orders was 11 systems as of 28 May 2010.
Financial performance during January- March 2009
The Group's net sales amounted to kSEK 2 779 (1 028), during first quarter 2010.
Gross profit reached kSEK -1 462 (- 2 462), an enjoyable improvement compared
with the same period last year due to an increase in net sales. Operating profit
first quarter amount to -1 608 ksSEK (- 2 569).
The subsidiary C-RAD Positioning AB has during this quarter made amortizations
on R&D expenses. It amounted to kSEK 624 (499).
Work performed by the Group for its own use and capitalized amounted to kSEK 2
115 (2 495) during first quarter 2010. The Group's investment in capitalized
development expenses totaled 33 257 (27 857) kSEK.
The Group's cash and cash equivalents at 31 March 2010 totaled kSEK 12 225 (9
777). Cash flow for the period was 8 244 (-6 571) kSEK. The main explanation for
the positive cash flow was the C-RAD capital increase, taking place during
feb-march 2010.
New accounting standards
The revised IAS 1, Presentation of Financial
Statements, is applied with effect from 1
January 2009. Among other things, the revision
means that income and expenses that were
previously recognized directly in equity are now
recognized in connection with the income
statement.
IFRS 8, Operating Segments, is applied with
effect from 1 January 2009. The standard
requires adaptation of segment information to
the reporting used internally by the company's
management for monitoring of operations.
Personnel
The number of employees at 31 March 2010 totaled 19 (18).
Transactions to related parties
Scandiflash AB has been appointed as the manufacturer of C-RAD SentinelTM and
LAP Galaxy. ScandiFlash AB is fulfilling the high quality requirements to
manufacture the hardware of the systems. Erik Hedlund, President of C-RAD AB,
is holding 30 % of the shares of ScandiFlash AB.
Risk and uncertainty factors
The Group's capitalized development expenditures amounts to 33 MSEK, divided in
the two products Sentinel and GEMini. Should these investments fail in part or
in full, C-RAD may be forced to recognize an impairment loss on all or parts of
the projects.
Future outlooks
The Group have started to introduce and launch the products on markets worldwide
and are expecting fluctuating sale figures from quarter to quarter.
Consilidated Income statements
--------------------------------------------------------------------------------
| (Amount in SEK 000s) | 2010 | 2009 | 2009 | 2008 |
| | Jan-March | Jan-March | Jan-Dec | Jan-Dec |
| | (3 mon) | | (12 mon) | |
| | | (3 mon) | | (12 mon) |
--------------------------------------------------------------------------------
| Operating income | | | | |
--------------------------------------------------------------------------------
| Net sales | 2 779 | 1 028 | 4 899 | 1 291 |
--------------------------------------------------------------------------------
| Work performed by the | 2 115 | 2 495 | 7 473 | 9 594 |
| company for its own use | | | | |
| and capitalized | | | | |
--------------------------------------------------------------------------------
| Other operating incomes | 90 | 110 | 494 | 126 |
--------------------------------------------------------------------------------
| Operating expenses | | | | |
--------------------------------------------------------------------------------
| Raw materials and | -761 | -324 | -2 943 | -1 251 |
| consumables | | | | |
--------------------------------------------------------------------------------
| Other external costs | -1 661 | -1 496 | -4 479 | -5 700 |
--------------------------------------------------------------------------------
| Personnel costs | -3 322 | -3 589 | -12 705 | -13 309 |
--------------------------------------------------------------------------------
| Depriciations | -702 | -650 | -2 651 | -1 364 |
--------------------------------------------------------------------------------
| Other operating expenses | - | - | -13 | -14 |
--------------------------------------------------------------------------------
| Operating loss | -1 462 | -2 426 | -9 925 | -10 627 |
--------------------------------------------------------------------------------
| Financial items | -146 | -143 | -326 | -95 |
--------------------------------------------------------------------------------
| Loss after financial | - 1 608 | -2 569 | -10 251 | -10 722 |
| items | | | | |
--------------------------------------------------------------------------------
| Tax on profit of the year | | | | |
--------------------------------------------------------------------------------
| NET PROFIT/LOSS OF THE | -1 608 | -2 569 | -10 251 | -10 722 |
| PERIOD | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | 0 | 0 | 0 | 0 |
| income | | | | |
--------------------------------------------------------------------------------
| Comprahensive income for | -1 608 | -2 569 | -10 251 | -10 722 |
| the period | | | | |
--------------------------------------------------------------------------------
Consilidated balance sheets
--------------------------------------------------------------------------------
| (Amount in SEK 000s) | 2010 | 2009 | 2009 | 2008 |
| | 31 March | 31 March | 31 Dec | 31 Dec |
--------------------------------------------------------------------------------
| Intangible assets | 33 257 | 27 857 | 31 598 | 25 851 |
--------------------------------------------------------------------------------
| Tangible assets | 578 | 348 | 580 | 407 |
--------------------------------------------------------------------------------
| Financial assets | 106 | 764 | 106 | 764 |
--------------------------------------------------------------------------------
| Inventories | 2 237 | 1 024 | 2 293 | 1 194 |
--------------------------------------------------------------------------------
| Current recievables | 5 325 | 3 141 | 6 279 | 3 819 |
--------------------------------------------------------------------------------
| Cash and bank balances | 12 | 9 777 | 3 981 | 16 349 |
| | 225 | | | |
--------------------------------------------------------------------------------
| Total assets | 53 | 42 911 | 44 837 | 48 383 |
| | 728 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 38 | 32 624 | 29 816 | 35 049 |
| | 593 | | | |
--------------------------------------------------------------------------------
| Long-term liabilities | 8 036 | 4 542 | 7 002 | 4 273 |
--------------------------------------------------------------------------------
| Current liabilities | 7 099 | 4 859 | 8 019 | 9 061 |
--------------------------------------------------------------------------------
| Total eguity and liabilities | 53 | 42 911 | 44 837 | 48 383 |
| | 728 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Key ratio | 2010 | 2009 | 2009 | 2008 |
| | 31 March | 31 March | 31 Dec | 31 Dec |
--------------------------------------------------------------------------------
| Class A shares | 1 302 810 | 1 302 810 | 1 302 810 | 1 302 810 |
--------------------------------------------------------------------------------
| Class B shares | 9 624 399 | 8 218 644 | 8 673 190 | 8 218 644 |
--------------------------------------------------------------------------------
| Average number of shares | 10 031 | 9 521 454 | 9 948 727 | 8 370 781 |
| | 170 | | | |
--------------------------------------------------------------------------------
| Average number of shares | 11 066 | 10 379 | 10 668 803 | 9 130 450 |
| after dilution | 439 | 523 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Eguity ratio | 72 % | 76 % | 67 % | 72 % |
| | | | | |
--------------------------------------------------------------------------------
| Basic earnings per share | -0,16 | -0,27 | -1,06 | -1,28 |
| (average numbers of | | | | |
| shares) (SEK) | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per share | -0,15 | -0,25 | -0,96 | -1,17 |
--------------------------------------------------------------------------------
| Eguity per share (SEK) | 3,53 | 3,43 | 2,99 | 3,68 |
--------------------------------------------------------------------------------
| Diluted equity per share | 3,49 | 3,14 | 2,79 | 3,85 |
--------------------------------------------------------------------------------
| Profit margin | Neg. | Neg. | Neg. | Neg. |
--------------------------------------------------------------------------------
Segment reporting
Starting on 1 January 2009, the Group has implemented IFRS 8 Operating Segments.
The Group Management has analyzed the Group´s internal reporting and established
that the Group´s operations are managed and evaluated based on the following
segments:
Positioning. A Laser scanner for positioning of patients during radiation
therapy.
Imaging. A detection plate for location of a cancer tumor before treatment.
Diode detectors for use in the field of dosimetry
Innovation. A system for external radiation therapy.
--------------------------------------------------------------------------------
| (Amounts in SEK | Jan-Marc | Jan-March | 2009 | 2008 |
| 000s) | h 2010 | 2008 | | |
--------------------------------------------------------------------------------
| Revenue by | | | | |
| segment | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Positioning | 1 667 | 1 028 | 4 899 | 1 291 |
--------------------------------------------------------------------------------
| Imaging | 1 112 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Innovation | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| | 2 779 | 1 028 | 4 899 | 1 291 |
--------------------------------------------------------------------------------
| Gross profit by | | | | |
| segment | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Positioning | 1 284 | 769 | 3 634 | 954 |
--------------------------------------------------------------------------------
| Imaging | 792 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Innovation | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Trade receivables | | | | |
| by segment | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Positioning | 2 753 | 1 399 | 3 713 | 1 159 |
--------------------------------------------------------------------------------
| Imaging | 459 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Innovation | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Revenue by | | | | |
| geographical | | | | |
| market | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Scandinavia | 76 | 0 | 941 | 887 |
--------------------------------------------------------------------------------
| Europe | 1 036 | 1 028 | 2 202 | 0 |
--------------------------------------------------------------------------------
| USA | 0 | 0 | 1 756 | 404 |
--------------------------------------------------------------------------------
| Asia | 1 667 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 2 779 | 1 028 | 4 899 | 1 291 |
--------------------------------------------------------------------------------
Consilidated Cash flow statements
--------------------------------------------------------------------------------
| (Amount in SEK 000s) | 2010 | 2009 | 2009 | 2008 |
| | Jan- | Jan-March | Jan-Dec | Jan-Dec |
| | March | | | |
--------------------------------------------------------------------------------
| Operating activities | | | | |
--------------------------------------------------------------------------------
| Operating | -1 462 | -2 496 | -9 924 | - 10 647 | |
| profit/loss | | | | | |
--------------------------------------------------------------------------------
| Adjustments for | 702 | 650 | 2 651 | 1365 | |
| non-cash items, etc | | | | | |
--------------------------------------------------------------------------------
| Interest received | - | - | - | 375 | |
--------------------------------------------------------------------------------
| Interest paid | -146 | -143 | -326 | -470 | |
--------------------------------------------------------------------------------
| Cash flow from | -906 | -1 919 | -7 599 | - 9 377 | |
| operating activities | | | | | |
| before working | | | | | |
| capital changes | | | | | |
--------------------------------------------------------------------------------
| Working capital | -2 411 | 189 | - 1 127 | - 679 | |
| changes | | | | | |
--------------------------------------------------------------------------------
| Cash flow from | -3 317 | -1 730 | -8 726 | -10 056 | |
| operating activities | | | | | |
--------------------------------------------------------------------------------
| Cash flow from | -2 358 | -2 597 | -7 914 | - 12 697 | |
| investing activities | | | | | |
--------------------------------------------------------------------------------
| Cash flow from | 13 919 | -2 244 | 4 272 | 17 438 | |
| financing activities | | | | | |
--------------------------------------------------------------------------------
| Cash flow at end of | 8 244 | - 6 | -12 368 | - 5 314 | |
| period | | 571 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash | 3 981 | 16 349 | 16 349 | 21 663 | |
| equivalents at | | | | | |
| beginning of period | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 12 225 | 9 778 | 3 981 | 16 349 | |
| equivalents at end | | | | | |
| of period | | | | | |
--------------------------------------------------------------------------------
Consilidated statements of changes in eguity
--------------------------------------------------------------------------------
| (Amount in SEK 000s) | 2010 | 2009 | 2009 | 2008 |
| | Jan-Marc | Jan-Marc | Jan-Dec | Jan-Dec |
| | h | h | (12 mon) | (12 mon) |
| | (3 mon) | (3 mon) | | |
--------------------------------------------------------------------------------
| At beginning of period | 29 816 | 35 049 | 35 049 | 31 659 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| New share issue | 12 366 | | 5 000 | 14 722 |
--------------------------------------------------------------------------------
| Issue expenses | -1 947 | | -23 | -777 |
--------------------------------------------------------------------------------
| Dissolved negativ goodwill | | | | |
--------------------------------------------------------------------------------
| Warrants in C-RAD AB | | | - | 270 |
--------------------------------------------------------------------------------
| Eguity on convertible loan | -34 | 144 | 41 | -102 |
--------------------------------------------------------------------------------
| Loss for the period | -1 608 | -2 569 | -10 251 | -10 723 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| At end of period | 38 593 | 32 624 | 29 816 | 35 049 |
--------------------------------------------------------------------------------
Accounting policies
The consolidated financial statements have been prepared in compliance with the
International Financial Reporting Standards (IFRS) established by the
International Accounting Standards Board (IASB) and the interpretations
published by the International Financial Reporting Interpretations Committee
(IFRIC) that have been endorsed by the European Commission for application in
the EU.
This interim report has been prepared for the Group in accordance with IAS 34,
Interim Financial Reporting, and the Annual Accounts Act.
The Group apply the same accounting and valuation principles as in the 2009
annual report.
Financial calendar
Next interim report will be published August 24 2010
This interim report provides a true and fair picture of the business activities,
financial position and results of operation of the Group, and describes the
significant risks and uncertainties to which the Group are exposed. If there
should be deviations between the reports in english and swedish, the swedish
version is valid. The Swedish report has not been reviewed by the group auditor.
Uppsala, 28 May 2010
Börje Bengtsson Erik Hedlund
Board Chairman Managing Director
Board member
Mats Thorén Anders Brahme
Board member Board member
Bengt Lind
Board member
C-RAD AB (publ)
Bredgränd 14
753 20 Uppsala
Telephone 018 - 66 69 30
Homepage: www.c-rad.se
Corp Id number: 556663-9174
