Key events in the period January-September 2014
- Net sales: Jan-Sept 34.6 (28.2) MSEK, +23%
- Order intake: Jan-Sept 43.8 (31.9) MSEK, +37%
- Operating loss: Jan-Sept -8.3 (-15.4) MSEK
- Net results per share: Jan-Sept -0.09 (-0.96)
- Skandion Clinic, the first clinic for proton therapy in Scandinavia chosen C-Rad
- Nine systems ordered in Germany
- First Catalyst order from an important university hospital in UK
- Successful C-RAD presentation at ASTRO meeting
Comments from Tim Thurn, CEO:
“We continued to make good progress towards our 2014 targets in the third quarter. On the financial side, order intake for the first three quarters was in line with our expectations, with an increase of 37% over the same period last year. The main driver was the sales activities of our positioning products, which increased by 59%. As a result the gross profit has been increased from 54% during 2013 to 62% in 2014. Our expectations are high for the 4th quarter, which is usually the strongest quarter in the year.
Revenue was below expectations for the first three quarters of the year at 34.6 MSEK, up 23% over the previous year. This was due primarily to weaker order performance than expected in Q2 and, in particular, delays in three projects in the German-speaking region. Additionally an important Catalyst HD project which was scheduled in Q3 was not delivered due to outstanding product registration. These two items affected the Q3 revenues and cash flow. Cash flow is otherwise in line with expectations, with most customers having been invoiced at end of Q3.
Order Intake from the service business, which constituted 10% of total order intake in Q3, is expected to continue growing. Our international service organization has been further strengthened. Our Asian distributor network’s service organization has now been fully trained, and can provide technical service at the same level as our central service organization. This service contracts will be sold in this region from the beginning of next year.
The German-speaking countries became the strongest region overall for the first three quarters, with an order intake summing up to 10 MSEK.
Our US sales organization, which has been restructured and strengthened after winding up our former US sales partnership with Scandidos, continues to perform outstandingly. In Q3 the region more than doubled its order intake compared to intake in 2013. This was in large part due to our introduction of Catalyst HD, a new product developed especially to meet requirements of the US market for stereotactic and SRS treatments. Results show that it was successfully received, and we see a huge potential for this product to do well in that large and active market.
Project GEMini™ is being reorganized, after Kristoffer Maad left C-RAD in September. I am the acting CEO for the C-RAD Imaging subsidiary and am responsible for commercial deployment of the product. Gunnar Norberg has taken over responsibility for the management of technical projects. Clinical tests of GEMini have showed successful results in line with expectations, and interest from the market remains, following the same track and focusing on OEM and clinical customers.
C-RAD was also chosen by Skandionkliniken, Uppsala, the first clinic for proton therapy in Scandinavia. to deliver its surface tracking solutions for Patient Positioning, Motion Monitoring and Respiratory Gating. The tender includes systems for four rooms with an option for an additional two rooms, or more than 4MSEK. A competitor has filed an appeal. The timetable for a court decision is open and beyond our influence.
All in all, the C-RAD team – both development and sales – is well-equipped to manage an exciting and strong 4th quarter.”
About C-RAD
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 investors@c-rad.com
