Interim Financial Statement January – June 2012

Danderyd, 2012-08-31 07:59 CEST (GLOBE NEWSWIRE) --  

XCounter AB (publ) (Nasdaq OMX First North: XCT), a technology leader in direct conversion and photon counting digital X-ray imaging for medical, dental and industrial markets, is pleased to announce the Interim Financial Statement January – June 2012. The report is available at the company´s website www.xcounter.se .

Highlights for April – June

Financial

• Net sales increased 20.1% to SEK 18.7m (EUR 2.10m) (2011: SEK 15.6m (EUR 1.75m))
• Net cash used in operating activities SEK -0.7m (EUR -0.08) (2011: SEK -1.8m (EUR -0.21m))
• Operating loss reduced 56,4% to SEK -1.1m (EUR -0.12m) (2011: -2.4m (EUR -0.27m))
• Group loss reduced 44.0% to SEK -2.2m (EUR -0.24m) (2011: SEK -3.9m (EUR -0.44m))

• Loss per share before dilution were SEK -0.55 (EUR -0.06) (2011: SEK -0.99 (EUR -0.11))

Highlights for January – June

Financial

• Net sales increased 46.6% to SEK 37.9m (EUR 4.27m) (2011: SEK 25.9m (EUR 2.91m))
• Net cash from operating activities SEK 7.1m (EUR 0.81m) (2011: SEK -9.6m (EUR -1.10m))
• Operating loss reduced 66.4% to SEK -2.4m (EUR -0.27m) (2011: -7.3m (EUR -0.82m))
• Group loss reduced 45.3% to SEK -4.2m (EUR -0.49m) (2011: SEK -7.7m (EUR -0.86m))
• Loss per share before dilution were SEK -1.06 (EUR -0.12) (2011: SEK -2.07 (EUR -0.23))
• XCounter performed a share issue at 29 June 2012 resulting in 116 new shareholders

Subsequent to the period-end 30 June 2012, the following event of importance has taken place:

• On 15 August the share issue was registered, the cash contribution was SEK 2.4m

Fredrik Henckel, CEO of XCounter said:

“The revenue growth continued in the second quarter 2012 with 20% compared to same period last year, mainly from continued increase in sales to our OEM customers.

The growth for the period January - June reached 47% compared to same period last year. From August we get larger deliveries of our detection material CdTe which allow us to keep growing. We continue our focused efforts to get the Group sustainable cash flow positive. Our trend of high sales growth is key to get us there. The continued Eurozone turmoil has decreased our sales in Europe for the period January – June. We can’t see today when the turmoil will end.”

CEO statement

Continued high growth

XCounter technologies target three independent business segments, where our existing and future sensor platforms can efficiently be used: medical, dental and industrial markets. We work closely with our OEM partners to continue to strengthen our position in all of these segments and to maximize our internal technology synergies.

Our Finnish operations, through our wholly owned subsidiary AJAT, have continued to perform well through increased sales to our OEM’s in different continents. In the period we have seen a significant increase in dental sales. The result is impacted by the expansion of AJAT business with increased costs for staff, facility and machinery & equipment in order to meet current and future growth and demands.

Collaboration with CT Imaging GmbH (“CT Imaging”) (Changed from Artemis to CT)

The ongoing collaboration with CT Imaging for the development of a high-end 3D sensor for a low-dose, high-resolution breast CT scanner continues to progress according to plan. The development aims to use XCounter’s digital direct conversion solid-state sensor technology and XCounter's photon counting technology to achieve superior image quality at low radiation dose. In end of the third quarter we plan to deliver our first prototype sensor.

Cooperation with Leading Healthcare Imaging Company

On 16 February 2012 the Company announced that an “R&D” Agreement had been signed with the Leading Healthcare Imaging Company. The Company received payment of SEK 9.0m (EUR 1.0m) during Q1 2012 and received payment of SEK 4.1m (EUR 0.45m) in Q2 2012 as a result of the ”R&D” Agreement being signed and milestones achieved. The company will develop and supply a high-speed 3D photon counting sensor to the customer. The project proceeds according to plan. In end of the fourth quarter we plan to deliver out first prototype sensor to our partner.

Financial overview

April - June

• During the period XCounter recorded revenue of SEK 18.7m (EUR 2.10m) (2011: SEK 15.6m (EUR 1.75m))
• Loss for the period was SEK -2.2m (EUR -0.24m) compared to SEK -3.9m (EUR -0.44m) for the same period 2011. This is in line with management’s expectations for the period

January - June

• During the period XCounter recorded revenue of SEK 37.9m (EUR 4.27m) (2011: SEK 25.9m (EUR 2.91m))
• Loss for the period was SEK -4.2m (EUR -0.47m) compared to SEK -7.7m (EUR -0.86m) for the same period 2011. This is in line with management’s expectations for the period
• Net cash position at the end of the period was SEK 12.7m (EUR 1.45m) compared to SEK 21.3m (EUR 2.43m) at the end of the same period 2011

The Directors believe that the current business plan enables the Group to reach sustainable profitability.

Outlook and going concern                    

XCounter’s progress over the year has been substantial and in line with our strategy. But we lack visibility now for the rest of the year due to the Eurozone turmoil which we monitor closely. We don’t know today how this will impact on our future sales in Europe. We have been able to grow in the period January-June despite lower revenues in Europe by higher revenues from our OEM’s in the other geographical areas.

We continue our strategy to focus on the below areas:

• create further OEM partnerships
• establish further ”R&D” projects in the medical field
• expand business in both existing  markets and new segments in the industrial area
• the Board will continue to evaluate suitable acquisition targets

This report has been prepared under the assumption of going concern.

Danderyd 31 August 2012

Fredrik Henckel                                       CEO,  XCounter AB

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XCounter AB in summary

XCounter AB is a technology leader in direct conversion and photon counting digital X–ray imaging for medical, dental and industrial markets targeting to be the leading provider of high-end X-ray sensors. The Company’s share is traded at the stock exchange Nasdaq OMX First North. Mangold Fondkommission AB, telephone +46 8 503 015 50, is the Company’s Certified Adviser and Liquidity Provider. Further information about XCounter AB can be found at www.xcounter.se.