C-RAD AB – Interim report January-June 2018 PROFITABLE QUARTER, REVENUE INCREASED BY 61 PERCENT SECOND QUARTER 2018
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Comments from Tim Thurn, CEO:
SIGNIFICANT GROWTH IN REVENUE
We are closing the second quarter with significant growth in revenue, an operating profit and a considerable increase in order intake. The result is proving the continuously increasing demand from the market for C-RAD’s technology and the consequent execution of our growth strategy.
We closed the second quarter with 51.9 MSEK in revenue, an increase of 61 percent compared to the same period 2017 and an increase of 54 percent compared to the first quarter 2018. Order intake increased with 14 percent to 56.4 MSEK across all product categories in the second quarter. Order intake of our Laser products grew with 103 % and our largest category – Positioning products – with 33%, which is positive as this is the basis for near term revenue and it provides the opportunity to up-sale service contracts. In the same period operating profit increased from -4.1 MSEK in 2017 to 2.0 MSEK 2018. This is a very encouraging result and underlines the positive development we have seen in the last quarters.
A large part of the order for NKS Stockholm which C-RAD booked partly in the third quarter 2017 and partly in the first quarter was delivered and installed during the second quarter. About 12 MSEK are related to products that C-RAD is distributing for other manufacturers of equipment for radiation therapy in the Nordic countries. The gross margin for the distribution products is significantly less than for sales of the C-RAD’s own products. Gross margin on C-RAD products remains at around 60 percent. Therefore, we close the quarter with a gross margin of 53 percent.
In line with the fundamentals of our growth strategy, we have continued to increase our R&D efforts to strengthen our value proposition by adding compelling new products that complement our existing offer and to ensure that we will stay ahead of the competition also going forward.
Looking at the period from January to June, order intake in the region APAC and EMEA grew with 191 percent and 52 percent respectively compared to the same period previous year. Whereas in the North American market we see a decline in order intake of 50 percent. This is below our expectations, but we don’t believe this is a structural change and we have taken measures to improve the performance in the region moving forward. With order intake exceeding revenues repeatedly, we continue to increase our order stock, by 32 percent to 157 MSEK (118 M) by the end of June compared to the previous year. This provides us with a solid backlog for future revenues. I am very pleased with the consistent, positive development of our sales activities. The interest from customers during the recent exhibitions underscores our previous assessment of the constantly increasing demand for C-RAD products. I have great confidence, as we have previously proven, this will drive sustained growth however I want to point out that individual quarters might be volatile. We will continue to supply increasing number of customers with our cutting-edge technology and by this help to improve cancer care globally, 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 CEST on August 17, 2018.
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