C-RAD AB – Consolidated interim report Jan - June 2014

Press release 15 August 2014

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| Source: C-Rad AB

Key events within the period January-June 2014

 

Net sales:                                     

Jan-June 24,1 (16,4) MSEK, +47%                                                 

April-June 13,0 (7,8) MSEK, +67%                                                 

Order intake:                              

Jan-June 25,6 (18,8) MSEK, +36%                                                 

April-June 11,0 (9,1) MSEK, +21%                                                 

EBITDA:                                         

Jan-June -5,6 (-12,8) MSEK                                

April-June -3,9 (-16,1) MSEK                              

Net results per share                                           

Jan-June 0,04 (-0,96)                                            

April-June 0,13 (-0,59)             

 

In Q2:                                                                                                                                                                                              

- Order of three systems from Mälarsjukhuset in Eskilstuna                                                                                                                                                                                                       

- Order of four systems from US customers in June                                                                                                                                                                                          

- New sales manager and expansion of product portfolio in the Nordic region is underway                                                                                                                                                                                                   

- Outstanding C-RAD Presentation at ESTRO Meeting                                                                                                                                                                                       

- Cooperation with Scandidos in North America ended                                                                                                                                                                                    

- Production of diode detoctors for IBA Dosimetry will be stopped in Q4                                                                                                                                                                              

- Deferred tax asset of 7,1 MSEK recognised                                                                                                                                                                                                        

                                                                                                                                                                                                          

In Q1:                                                                                                                                                                                              

- Succesful share increase of 700 000 shares, provided 11,4 MSEK before expenses                                                                                                                                                                                     

- GEMini™ Joint Testing and Validation with TheraView Technology by Cablon Medical B.V.                                                                                                                                                                                                  

- The China Food and Drug Administration has approved the Sentinel system                                                                                                                                                                                                 

- Framework agreement with IBA for the supply of diode detectors 4,6 MSEK (6,2 M)  

 

Key events after the reporting period

 

First Catalyst Order from the UK

Comments Tim Thurn, CEO

“The second quarter saw significant progress towards our three targets for 2014:  financial growth, development of an international service organization and moving towards releasing the GEMini™ together with a software package for patient imaging and portal dosimetry.

Revenues for Q2 came in very strong, with an increase of 67% over Q2 last year. Revenues YTD increased 47% over last year. Order intake was also strong for the first half of the year at 25,7 MSEK, up 36% over the previous year.

Our investment over the last two years in our US sales organization is now decidedly bearing fruit. The US market showed very positive development, becoming our strongest market for 1H 2014 in terms of order intake. Our second-strongest market cluster, the German-speaking countries, increased order intake by 111% in 1H 2014, a doubling from 1.8 MSEK to 3.8 MSEK.

We boosted our sales efforts in the Nordic region significantly by hiring a sales manager, Lars-Göran Lilja, who not only brings considerable experience from distributing radiation therapy products, but also selected products from his previous portfolio. We plan to strengthen our Nordic offering further by adding complementary products in the area of patient positioning and quality assurance to our portfolio.

GEMini was demonstrated together with Cablon Medical’s software package for portal dosimetry and imaging at the ESTRO Meeting in April, and customer interest there led to identification of concrete projects. We are now following up and developing these customer contacts, and expect to be able to convert them into orders. Due to the high level of interest shown at ESTRO, we also decided to present in late July at AAPM, which brings together players in the world’s largest radiation therapy market, the US.

During 2014 we began developing  “soft offers” for our products that go beyond. This has created an additional opportunity for us: extended service contract packages have been ordered by several customers in Europe already. Now that many installed devices are exiting their 12-24 month initial warranty periods, this is creating an additional opportunity, and we will focus on offering service contracts to existing customers during the rest of the year. Our service contracts typically run on an annual automatic renewal basis. The service business is starting to contribute its own revenue stream, and further growth is expected.

In May we terminated our year-long mutual distribution agreement with ScandiDos on the North American market. While the general idea of having a partner in the US was correct, we were approaching a situation where we would be offering a competitive product within dosimetry with the GEMini. Ongoing sales projects that were developed during the agreement period will be finalized by the end of July. In order to maintain our strong position we have decided to increase our resources on the US market.

Last but not least, we have received a welcome boost in the form of two new board members, who were elected on April 16. Brian Holch Kristensen will be contributing his expertise on the clinical side and Bengt Rolén, as a representative from the capital side, will add his strengths from the business perspective. A good team just got stronger. ”