Year-end bulletin 2012

Danderyd, 2013-02-28 08:13 CET (GLOBE NEWSWIRE) --  

XCounter AB (publ) (Nasdaq OMX First North: XCT), a technology leader in direct conversion and photon counting digital X–ray imaging for dental, medical and industrial markets, is pleased to announce its year-end bulletin 2012.

Highlights for October - December

Financial

• Net sales increased 5.9% to SEK 19.6m (EUR 2.3m) (2011: SEK 18.5m (EUR 2.0m))
• ​Net cash used in operating activities SEK -5.8m (EUR -0.7m) (2011: SEK -2.3m (EUR -0.3m))
• Operating loss reduced 36.7% to SEK -3.2m (EUR -0.4m) (2011: SEK -5.1m (EUR -0.6m))
• Loss reduced 30.3% to SEK -2.4m (EUR -0.3m) (2011: SEK -3.4m (EUR -0.4m))
• Loss per share before dilution SEK -0.54 (EUR -0.06) (2011: SEK -0.87 (EUR -0.10))
• On 6 November XCounter held an extraordinary general meeting which resolved the following resolutions; Mr. Charles Spicer was elected as new Board director, annual fee to the Board of Directors, share issue of maximum 670,000 shares, board stock option plan 2012/2016 and the issuance of warrants, employee stock option plan 2012/2017 and issuance of warrants
• On 7 November XCounter announced the share issue to be completed with 457,174 new shares raising SEK 7.8m (EUR 0.9m) before transaction costs. On 20^th November XCounter announced the registration of the new shares and a net cash contribution of SEK 7.7m (EUR 0.9m)
• By end of November an Unconditional Shareholder’s Contribution was given to the subsidiary Oy AJAT Ltd. with SEK 2.6m (EUR 0.3m)
• In the announcement in June 2011 regarding the General agreement being signed with the Leading Healthcare Imaging Company, a Warrant over 12.5% of the shares subject to shareholder approval was included. The parties have recently agreed not to present this Warrant for shareholder approval. As a consequence, the Company will receive SEK 3.4m (EUR 0.4m) less in exclusivity payment during 2013

Highlights 2012

Financial

• Net sales increased 28.3% to SEK 74.1m (EUR 8.5m)  (2011: SEK 57.8m (EUR 6.4m))
• Net cash from operating activities SEK 0.2m (EUR 0.02m) (2011: SEK -12.1m (EUR 1.3m))
• Operating loss reduced 60.6% to SEK -7.2m (EUR -0.8m) (2011: -18.2m (EUR -2.0m))
• Loss reduced 54.1% to SEK -8.6m (EUR -1.0m) (2011: SEK -18.7m (EUR -2.1m))
• Earnings per share before dilution SEK -1.94 (EUR -0.22) (2011: SEK -4.90 (EUR -0.54))
• The Company received payments with in total SEK 12.9m (EUR 1.45m) in 2012 from the Leading Healthcare Imaging Company as a result of the R&D Agreement being signed and milestones achieved
• On 15 August 2012 a share issue was registered, the cash contribution was SEK 2.4m (EUR 0.3m)

The following events of importance have taken place subsequent to the 2012 year end:

• By the end of January 2013 we delivered the first module prototype for the 3D mammo-sensor to CT Imaging. The module is able to generate X-ray images in the high speed of 1000 frames/second
• During February 2013 we delivered a first customized industrial prototype sensor to VisuRay. The project is estimated to be finalized and recognized in the income statement in the second quarter of 2013 with an expected profit of about SEK 1m (EUR 0.1m)

Fredrik Henckel, CEO of XCounter said:

Our sales increased in both Asia and Americas and contributed to a growth for the full year 2012 of 28% despite a significant decrease of our sales in Europe during the year.

The full year results for 2012 show a significant improvement over 2011 through higher turnover and a considerable lower cost level for the Parent company. 2013 has started well and we plan for another year of growth assuming no unforeseen events.

In order to capitalize on the expected growth of our base technology, we have decided to accelerate our R&D programs in order to get us to the market sooner with new attractive products, including an ultra-fast industrial sensor and an intra-oral dental sensor. These new products are targeted to reach the market in 2013 and 2014 respectively.

The delivery of the Leading Healthcare Imaging Company’s prototype sensor is now anticipated in the second quarter of 2013. This, combined with the delivery of customized sensors to CT Imaging and VisuRay, underlines the valued expertise and high commitment of our employees.

We welcome the appointment of Mr. Charles Spicer as director. He brings additional medical expertise to the Group.” 

CEO STATEMENT

Continued high growth and acceleration of certain R&D projects

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

During the year we have seen a significant increase in dental sensor sales from our Finnish business to our OEMs which grew sales by 28% for 2012 compared to 2011. We increased our production capacity in both years to meet current and future growth, which now leaves us well-prepared for continued growth next year as markets require.

In order to get to market sooner with attractive new products, we have accelerated certain R&D projects within each of our areas; dental, medical and industrial. We continue our development of a 3D dental sensor and will start developing an intra-oral dental sensor as well as an ultra-fast industrial sensor. Funds will be used to fund external costs and the hiring of more employees.

The collaboration with CT Imaging GmbH (“CT Imaging”) (name 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 sensor continues to progress but has experienced some delays due to late deliveries from a sub-supplier. However, in January 2013 we delivered our first prototype of a sensor module and, in 2013, we estimate to sell at least three sensors to CT Imaging for their tests, validation and certification. We estimate that their system with our integrated sensor could reach the market at the earliest during the second half of 2014.

The cooperation with the 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 payments totalling SEK 12.9m (EUR 1.45m) during 2012 as a result of the R&D Agreement being signed and milestones achieved. Further payments will be received during 2013 once milestones are met. The Company will develop and supply a high-speed 3D photon counting sensor to the customer. We estimate now that we will deliver the first functional prototype sensor in the second quarter of 2013.

In the announcement in June 2011 of the General agreement being signed, a Warrant over 12.5% of the shares subject to shareholder approval was referenced. The parties have recently agreed not to present this Warrant for shareholder approval. As a consequence, the Company will receive SEK 3.4m (EUR 0.4m) less in exclusivity payment during 2013.

Financial data

Revenues for the period October - December amounted to kSEK 19,563 (kEUR: 2,268) (2011: kSEK 18,470 (kEUR: 2,031)), and for the period January - December it amounted to kSEK 74,135 (kEUR: 8,516) (2011: kSEK 57,800 (kEUR: 6,398)) which relates mainly to sales of X-ray sensors and systems for dental and industrial use.

Raw material costs for the period October - December amounted to kSEK 12,043 (kEUR: 1,383) (2011: kSEK 9,362 (kEUR: 1,036)), and for the period January - December it amounted to kSEK 42,171 (kEUR: 4,844) (2011: kSEK 30,707 (kEUR: 3,399)) which are mostly attributable to purchases of Cadmium Telluride (CdTe) and other components for manufacturing of X-ray-sensors and systems.

Capitalized expenditure for development for the period which ended 31 December 2012 amounted to kSEK 8,088 (kEUR: 929) (2011: kSEK 10,860 (kEUR: 1,202) which is expenditures related to the development of X-ray sensors. Accumulated capitalized development costs as of 31 December 2012 amounted to kSEK 52,795 (kEUR: 6,127) (2011: kSEK 48,021 (kEUR: 5,573)) including R&D contributions/income for development.

Net cash position at the end of the period was SEK 10.1m (EUR 1.2m) compared to SEK 11.3m (EUR 1.3m) at the end of the same period 2011.

Outlook and going concern    

XCounter’s progress over the year has been substantial and in line with our strategy. We have been able to grow during the year, despite significant lower revenues in Europe, as a result of higher revenues from our OEM’s in the geographical areas Asia and Americas.

We continue to focus our strategy on the following areas:

• creating further OEM partnerships

• establishing further “R&D” projects in the medical field

•  expanding business in both existing  markets and new industrial segments

•  evaluating suitable value-enhancing acquisition opportunities as and where appropriate

Danderyd 28 February 2012

Fredrik Henckel                      CEO, XCounter AB

Future upcoming reporting dates

The Annual Report and the Year-end bulletin will not be distributed to the shareholders by mail, but it can be downloaded after publication on our website, www.xcounter.se, or it can be ordered by email, rasmus.ljungwe@xcounter.se

Proposed profit distribution

XCounter has not declared or paid any dividends on its shares since incorporation. The Directors’ current intention is to retain the Company’s earnings in the foreseeable future to finance its future development.

Annual general meeting 2013

The AGM is scheduled for 25 April 2013 at the Company’s premises, Svärdvägen 11D, Danderyd. Notice for the AGM will be notified and published to all shareholders latest 28 March 2013.

For further information

Fredrik Henckel, CEO, +46 8 622 23 17

Jean-Philippe Flament, Chairman

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.