Key events in the period January-December 2014
- Net sales: Jan-Dec 53.2 (45.0) MSEK, +18%
- Order intake: Jan-Dec 68.4 (50.3) MSEK, +36%
- Operating loss: Jan-Dec -13.0 (-20.3) MSEK
- Net results per share: Jan-Dec -0.31 (-1.15)
- C-RAD has been approved for listing on NASDAQ Stockholm
- C-RAD concludes sales agreement with Elekta K.K. for Japanese Market
- Order of three systems from German customer
- C-RAD launches global Research Fellow Program - cooperation with leading radiation therapy centers
- Subsidiary involved in legal claim
Comments from Tim Thurn, CEO:
Our activity level in 2014 has definitely been accelerating, and C-RAD is increasing its international presence in major markets, with very positive results. Our order intake in 2014 was the highest in C‑RAD’s history, increasing by 36% to 68.4 MSEK (50.3). Revenue increased by 19%, behind expectations, but many orders arrived in Q4, and we now have a substantial order book, totaling about 36 MSEK.
We experienced extremely good results for the German-speaking countries, with order intake up over 60%, and the USA more than doubling, compared to 2013. The successful launch of the Catalyst HD demonstrated that it really fulfills customer needs and expectations, gaining significant market share in North America. The OEM business is also starting to develop. Sales of our service products exceeded our expectations.
Asia and the Nordic regions were behind expectations, with some projects postponed. The ongoing product registration for the Chinese market has delayed our planned entry there. The Skandionkliniken Uppsala tender that we won in Q3 is still under appeal by a competitor, with the timeframe for a court decision still open. This order is not included in order intake 2014.
The year was capped by a big change: C-RAD has an increasingly international presence, with about 80 percent of total sales outside the Nordic region. In order to attract attention from larger funds and foreign investors, we successfully obtained listing on NASDAQ Stockholm Small Cap, where the C-RAD share has been traded since December 16.
In the GEMini project, we can see satisfactory progress and significant improvements in image quality. Our current challenge is to optimize the assembly set-up as we prepare to meet the demands of OEM and clinical customers.
The pace quickened enormously towards the end of the year. In November we achieved a fantastic distinction, being named the third fastest-growing healthcare company in Sweden in the Deloitte Sweden Technology Fast 50, based on our revenue growth the last five years. And there is still high growth potential in our current product portfolio.
The same month, Swedish company Beamocular AB – which is chaired by C-Rad AB’s previous CEO Erik Hedlund – sued C-RAD Positioning AB in the Stockholm District Court. Beamocular asserts a claim to IP described in a C-RAD patent application. C-RAD is of the firm opinion that the claim is unfounded and will defend its IP rights.
November also witnessed approval from the Japanese authorities for Catalyst and Sentinel and concluded an agreement with Elekta K.K. for sales and service in Japan. In December we demonstrated systems live for the first time to customers at JASTRO, Japan’s major radiotherapy convention.
Looking ahead, we see financial growth continuing in 2015 and we have ambitious revenue targets of more than 50% annually over the next three years. We are strengthening our European sales force in several countries, including a new salesperson in France, marking the start of direct sales in that country. We look forward to a strong order flow and a continued spotlight on an increasingly strong product portfolio.
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
