C-RAD AB – Interim report January - March 2015
Key events in the period January-March 2015
- Net sales: Jan-March 15.2 (11.1) MSEK, +37%
- Order intake: Jan-March 22.1 (14.7) MSEK, +51%
- Operating loss: Jan-March -1.2 (-1.6) MSEK
- Net results per share: Jan-March -0.09 (-0.10) SEK
- Large order for seven C-RAD systems from Germany and Estonia
- C-RAD further strengthening its global sales organization
- C-RAD signs sales and service agreement for Switzerland
- Tender for surface tracking solution at Skandionkliniken has been redone due to an appeal by a competitor
- 127% growth order intake with Positioning products
Comments from Tim Thurn, CEO:
After a strong order intake for FY 2014, the first quarter of 2015 shows a record in both orders and revenues. Order intake totaled 22.1 MSEK during Q1 2015, up 51% from Q1 2014. Orders for Positioning Products (which includes Sentinel, Catalyst and Cyrpa lasers) and related service products increased by 127%. Revenues for the entire group amounted to 15.2 MSEK in Q1 2015. This is an improvement of 37% compared to Q1 2014.
It should be noted that in Q1 2015 production activities for the German company IBA Dosimetry did not contribute to orders and revenue, since C-RAD phased out production activities in Q4 2014.
These results confirm that we are on track for achieving our ambitious financial targets: increasing sales by 50% a year through 2017, with a profit margin of 60%. They also indicate that our major investment in expanding our sales force has yielded results, and shall continue. The growing interest in the market must be addressed by competent and experienced people who can get C-RAD’s message out to decision-makers in radiation therapy centers.
Recruiting has been proceeding very well: The US, which is expected to be a main sales driver, has five sales/service staff, with two more under recruitment; France started direct sales this January, and has its two people in place; two sales and service staff in Germany will be complemented by an additional sales person; and China will also add one salesperson. In addition, we have opened up the Swiss market through an agreement with MedTech Consulting Cossman that cover sales, service and clinical training. The financing of our expansion has been addressed.
This quarter’s new sales include four systems to Estonia – the first sale in the Baltic region – and three systems to Dresden, Germany. Deliveries are phased over Q2-Q3.
Cash flow at the end of the quarter was low and we need to use our bank overdraft with 2.9 MSEK. This can be attributed to the fact that many deliveries took place in March, with payments due in April.
Recent successful appearances at exhibitions include the International Technical Exhibition of Medical Imaging (ITEM) in Japan, where we provided demonstrations of high-end treatments together with our partner Elekta. Our presence at the European Society for Radiotherapy & Oncology (ESTRO), the largest European radiation therapy group, was also marked by positive meetings with clinical customers and a good deal of traffic through our booth.
The Skandionkliniken Uppsala tender that we won in Q3 was appealed by a competitor, resulting in a new tender process. C-RAD has submitted its quotation under the new tender process. A decision is expected soon, but no schedule has been communicated by the customer.
With regard to our joint development with the Franco-Belgian company Cyrpa – in which we hold a minority stake of 29 percent – our joint product demonstrations have been well received in sales discussions with customers. Our current plan calls for integration of Cyrpa in 2016, but overall positive market developments continue to reinforce the benefits of an earlier integration, so we are investigating our options for accelerating this integration.
Overall, we are very pleased with this quarter’s performance, and look forward to increased sales activity and a strong order flow due to our expanded sales force, presence and visibility on the international stage.
C-RAD develops new and innovative solutions for the use in advanced radiation therapy. The company group of C-RAD offers products and solutions for patient positioning, tumor localization and radiation treatment systems. End users are radiation therapy clinics worldwide. All product development is conducted in three fully owned subsidiaries; C-RAD Positioning AB, C-RAD Imaging AB and C-RAD Innovation AB. C-RAD Imaging AB is located in Östersund while the other companies are located in Uppsala. Numbers of employees are currently 28 people. The activities in C-RAD AB originate from research and development at the Karolinska Institutet in Solna. Sales of the company’s first product, the C-RAD SentinelTM, started in 2007. Cooperation agreements have been signed with the Swedish company Elekta, the US company Varian and the Belgian company IBA. C-RAD is represented by distributors specialized in radiation therapy on major markets. C-RAD has founded three companies for direct sales, C-RAD Incorporated in the US, C-RAD GmbH in Germany and C-RAD WOFE in China. C-RAD has invested in 29 % of the laser company Cyrpa and with an option to acquire the remaining 71 %. C-RAD AB is since March 2010 listed at Nasdaq Omx First North Premier. Erik Penser Bankaktiebolag is appointed as C-RAD’s Certified Adviser.
For more information on C-RAD, please visit www.c-rad.com.
For further information:
Tim Thurn, CEO C-RAD AB, Phone +46-18-666931, E-mail email@example.com