Interim Report January 1 – March 31, 2018

RaySearch Laboratories AB (publ)

“During the first quarter 2018, net sales decreased 8 percent to SEK 116 M (127) and operating margin declined to 12 percent (26), primarily due to changes in accounting policies. With unchanged accounting policies, net sales would have been the same as the corresponding quarter of 2017, i.e., SEK 127 M, and the operating margin 19 percent. Cash flow before financing activities improved to SEK 13 M (8). We are secure in our long-term strategy and our expansion is continuing,” says Johan Löf, CEO of RaySearch.
     

THREE MONTHS (JANUARY-MARCH 2018)

• Net sales SEK 116.3 M (126.8), of which revenues from RayStation/RayCare SEK 104.2 M (112.3)
• Profit after tax SEK 11.8 M (26.3), and earnings per share before/after dilution SEK 0.34 (0.77) 
• Operating profit SEK 14.1 M (33.5) 
• Cash flow for the period SEK 12.3 M (neg: 3.0) 
• Order intake excl. service agreements SEK 106.6 M (104.9), of which RayStation/RayCare SEK 97.4 M (93.8) 
• At the end of the period, the order backlog excl. service agreements for RayStation/RayCare was SEK 58.5 M (58.1)
    
  

CHANGES TO ACCOUNTING POLICIES 

• IFRS 15 Revenue from Contracts with Customers applies as of January 1, 2018, which has reduced the company’s license revenue from RayStation by 12.5 percent during the first quarter 2018 compared with previous accounting policy (IAS 18), see Notes 1-2. The changed accounting policies also have a negative impact on net sales and earnings in the last 12-months period.
     
  

SIGNIFICANT EVENTS DURING THE FIRST QUARTER 

• RayStation was selected by several leading cancer centers, including Georgia Proton Treatment Center and Mission Hospital – SECU Cancer Center in the US, CHU de Québec-Université Laval in Canada, and Universitätsmedizin Rostock and Klinikum rechts der Isar der TU München in Germany. 
• RaySearch entered into a strategic partnership with MD Anderson with intention of improving radiation therapy.
• In March 2018, 200,000 Class A shares were converted to Class B at the request of a shareholder.
     

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

• RayStation has been selected as the treatment planning system for the two proton and carbon ion therapy centers, Heidelberg Ion Beam Therapy Center (HIT) and Marburg Ion Beam Therapy Center (MIT), in Germany. 
• RaySearch has entered into a long-term collaborative agreement for RayCare with Heidelberg University Hospital in Germany.
     
  

The information contained in the interim report is such that RaySearch Laboratories AB (publ) is obliged to disclose under the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication on May 9, 2018 at 7:45 a.m. CET.
   

FOR FURTHER INFORMATION, PLEASE CONTACT:
Johan Löf, President and CEO    Tel: +46 8 510 530 00    E-mail: johan.lof@raysearchlabs.com
Peter Thysell, CFO    Tel: +46 70 661 05 59    E-mail: peter.thysell@raysearchlabs.com
      

ABOUT RAYSEARCH
RaySearch Laboratories AB (publ) is a medical technology company that develops advanced software solutions for improved radiation therapy of cancer. The company develops and markets the RayStation treatment planning system to clinics all over the world and distributes the products through licensing agreements with leading medical technology companies. The company is also developing the next-generation oncology information system, RayCare, which was launched in December 2017 and comprises a new product area for RaySearch. RaySearch’s software is currently used by over 2,600 clinics in more than 65 countries. The company was founded in 2000 as a spin-off from the Karolinska Institute in Stockholm and the share has been listed on Nasdaq Stockholm since 2003.
More information about RaySearch is available at www.raysearchlabs.com. 

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