THIRD QUARTER 2020
· Order intake increased 15% to 80.5 (69.7) MSEK (17% in constant currencies).
· Order backlog amounted to 305.8 (229.6) MSEK.
· Revenue decreased 5% to 52.6 (55.6) MSEK (-3% in constant currencies).
· Operating profit amounted to 5.4 (1.7) MSEK, corresponding to a margin of 10.3 (3.1) %.
· Net results after tax amounted 3.8 (-1.4) MSEK.
· Result per share amounted to 0.11 (-0.05) SEK.
JANUARY - SEPTEMBER 2020
· Order intake increased 5% to 190.5 (181.7) MSEK (5% in constant currencies).
· Revenue decreased 5% to 147.3 (154.4) MSEK (-5% in constant currencies).
· Operating profit amounted to 7.3 (2.4) MSEK, corresponding to a margin of 4.9 (1.6) %.
· Net results after tax amounted 1.8 (-1.4) MSEK.
· Result per share amounted to 0.06 (-0.05) SEK.
Comments from Tim Thurn, CEO
The Covid-19 pandemic continuous to have an impact on the world economy and so on our business especially in North America and in parts of Europe. Despite implications caused by the pandemic order intake went up noticeable in the quarter. We closed the quarter with total revenue at the same level as in the same period 2019, still partly impacted negatively by the pandemic since installations and deliveries have been delayed. Operational expenses were measurable lower than last year, generating a record high quarterly operating profit.
Asia inclusive of Australia continuous to deliver very good results. Order intake grew with more than 60 percent, both in the third quarter and the period from January to September. Whereas this trend includes a few large wins, such as the projects in Australia, it shows the growing adoption of surface tracking in these dynamic markets. The positive development in orders over the past quarters has translated into a strong growth in revenue in the region.
Order intake in Europe decreased by 12 percent during the quarter. We saw variations between the countries, largely depending on the local situation with the pandemic, where north- and central Europe contributed positively but with less activity in south of Europe.
In North America a few key wins contributed to an improved order intake for this quarter compared to last year. The first half-year of 2020 was very much hampered by the pandemic whereas it is very positive to see that customers are re-engaging in sales projects. The cooperation with Elekta in North America is contributing to the total and shows first results.
Order intake for the positioning products across all regions grew again compared to last year. A solid growth in service revenue underlines that customers are interested to engage with C-RAD in a long-term relationship. A larger installed base with service contracts also generates a higher degree of future recurring revenue.
The pandemic has had an influence on how we work and how we interact with our customers. Travelling is still restricted, and exhibitions are going mostly virtual. We expect that this created a momentum in the market that will change the working style going forward. The significant reduction in travel cost and fees for trade shows is contributing to the decrease in operational expenses, being a contributor to the positive operating profit of 5 MSEK.
In the United States an update to the reimbursement system for healthcare providers has been released. Whereas not yet all details are entirely set, it is obvious that the system incentivizes cancer centers to adapt high precision treatment techniques. C-RAD views this development as very positive, both for the patients but also for the future of the company as our products are our predominately used for so called stereotactic treatments, where positioning accuracy is crucial for the treatment outcome.
Brian Loar, President C-RAD Inc., left C-RAD in the beginning of the fourth quarter to pursue an opportunity outside the radiation oncology market. The process for a new recruitment in the US has started.
C-RAD ends the quarter with a stable financial platform combined with a record high order backlog. On top of that we have a great product and a fantastic team, with that I am looking forward to the fourth quarter. The results are the evidence of our products being on the way to become standard of care. Even though it is difficult to predict the exact development of Covid -19 and its implications for C-RAD, I am convinced that we are well prepared for continued success.
Tim Thurn, CEO
C-RAD develops surface-guided imaging solutions for radiation therapy to allow highly accurate dose delivery to the tumor, and at the same time, to protect healthy tissue from unwanted exposure. Using high-speed 3D cameras combined with augmented reality, C-RAD supports the initial patient setup process and monitors the patient's motion during treatment to ensure high confidence, an efficient workflow, and improved accuracy. C-RAD monitors the patient's motion without the use of tattoos or additional imaging dose, to deliver the highest level of patient safety and comfort.
C-RAD. Inspiring excellence in cancer treatment.
C-RAD AB is listed on NASDAQ Stockholm.
For further information:
Tim Thurn, CEO C-RAD AB, Phone +46-18-666930, Email email@example.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 October 22, 2020.
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