Key events in the period October-December 2016
- Net sales: Oct-Dec 27.3 (20.1) MSEK, +36%
- Rolling 12m 82.7 (66.2) MSEK +25%
- Order intake: Oct-Dec 41.9 (26.7) MSEK, +57%
- Rolling 12m 113.5 (88.1) MSEK +29%
- Operating loss: Oct-Dec -4.4 (-6.1) MSEK
- Net results per share: Oct-Dec -0.16 (-0.28)
- Large order from US customers for 8.2 MSEK.
- First order from Ireland received, for 2.5 MSEK.
- C‐RAD receives the first two orders from General Electric.
- Direct share issue gives C‐RAD two new larger shareholders and 21.5 MSEK in capital contribution.
- Therése Björklund is appointed as new CFO.
Comments from Tim Thurn, CEO:
Strong performance across all regions delivering 57 % order intake increase in the fourth quarter
The US market is repeatedly presenting the strongest order intake with 8.7 (7.8) MSEK during the fourth quarter, which underlines the importance of this market for us. It is reassuring to see that the strategy is successful and yielding return. Both the Nordic countries and the German speaking countries showed an outstanding result during Q4 with an increase of 347 % to 8.5 (1.9) MSEK in the German speaking countries and a development of 238 % to 6.1 (1.8) MSEK in the Nordics. Overall, we continue to see a growing attention for the C‐RAD products and the number of large projects is confirming the momentum in the market and trust customers have in C‐RAD as a partner.
We booked orders of 13.4 MSEK during 2016 related to C‐RAD’s so called Life‐Cycle‐Business. This segment is at moment primarily covering sales of service contracts. As part of our strategic map the service business has been identified to be one of the elements for future growth, therefore it is encouraging to see strong interest from our customers to have their systems “insured” by a – generally – multi‐year service contract. Aside from the commercial benefit services tighten customer relationship and increase customer satisfaction.
The revenues increased during the fourth quarter with 36% to 27.3 (20.1) MSEK. The order onversion – the period between order intake and revenue recognition – is stable with 6 months. During 2016 C‐RAD made a loss of 30 mSEK. During the year we invested to substantially strengthen our sales organization and hired new sales and service personnel. The results from those investments we see through significant growth in order intake already in Q4. We have a strong organization to support further growth. Moving forward fixed costs will not increase to the same extent as in 2016. Looking at the fourth quarter we see fixed costs on a similar level as in the third quarter.
During 2016 C‐RAD made a loss of 30 mSEK. During the year we invested to substantially strengthen our sales organization and hired new sales and service personnel. The results from those investments we see through significant growth in order intake already in Q4. We have a strong organization to support further growth. Moving forward fixed costs will not increase to the same extent as in 2016. Looking at the fourth quarter we see fixed costs on a similar level as in the third quarter.
The gross profit margin has continued to increase, both on a quarterly sight to 57 % (51 %) and to 56 % (53 %) on an annual sight. At the same time, we could reduce the stock levels for material substantially. This confirms the positive development seen during previous quarters and is the result of the optimization of the supply chain C‐RAD did during 2016.
As announced on January, 30 MD Anderson decided in favor of the C‐RAD solution to equip four of their centers with the innovative C‐RAD Catalyst HD and Sentinel 4DCT systems – an order worth 17 MSEK, to be booked as order intake during the first quarter 2017. As the US market is representing almost half of the world‐wide radiation therapy market these results are very encouraging. The size of the market in the US shows a high unexploited potential for the C‐RAD product portfolio.
Overall, we continue to see an increasing demand for the C‐RAD products and that our solutions are gaining broader market acceptance. The success is confirming the interest and the confidence customers have in C‐RAD´s cutting edge solutions. With the combination of the market acceptance and with our strong organization we see significant growth opportunities for the future, whereas individual quarters might be volatile especially for order intake, says Tim Thurn, CEO of C‐RAD.
About C-RAD
C-RAD develops innovative solutions for use in advanced radiation therapy. The C-RAD group offers products and solutions for patient positioning, tumor localization and radiation treatment systems. All product development is conducted in three fully owned subsidiaries: C-RAD Positioning AB, C-RAD Imaging AB and C-RAD Innovation AB, all of which are located in Uppsala, Sweden. C-RAD has established three companies for direct sales: C-RAD Inc. in the US, C-RAD GmbH in Germany and C-RAD WOFE in China. Cyrpa International SPRL, a Franco-Belgian laser company, is a wholly owned subsidiary whose operations are integrated. C-RAD AB is listed on NASDAQ Stockholm.
For more information on C-RAD, please visit www.c-rad.com
For further information:
Tim Thurn, CEO C-RAD AB, Phone +46-18-666930, Email investors@c-rad.com
This information is information that C-RAD AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 08:30 CET on February 13, 2017.
