C-RAD AB Press release 6 November, 2015
Key events in the period January-September 2015Net sales: In Q3:
July-Sept 15.4 (10.5) MSEK, +47% - C-RAD signed contract with Skandion Clinic
Jan-Sept 45.7 (34.6) MSEK, +32% - C-RAD announces connectivity between its Catalyst surface tracking technology and
Order intake: Varian's TrueBeam® platform
July-Sept 23 (17.7) MSEK, +30% - C-RAD acquires all outstanding shares in Cyrpa International
Jan-Sept 61.5 (43.8) MSEK, +40% - Order secured from hospital in Norway for three C-RAD systems
Operating loss: - Order secured from Italy for eight C-RAD systems July-Sept -7.0 (-2.9) MSEK In Q1-Q2:
Jan-Sept -14.3 (-8.9) MSEK - Large order secured for in total seven C-RAD systems from Germany and Estonia
Net results per share - C-RAD grows sales organization in the United States
July-Sept -0.33 (-0.15) - C-RAD secures important first order from Japan, the world's second-largest market
Jan-Sept -0.71 (-0.13) for advanced radiotherapy technology
Comparative numbers have been restated, - Employee Warrant Program oversubscribed
we make reference to page 20 - Orders secured for three C-RAD systems from Italy and three from Bayreuth in Germany
Key events after the reporting period - C-RAD validates its respiratory gating interface for IBA proton and particle therapyC-RAD signs sales and distribution agreement with GE Healthcare
C-RAD signs agreement with Yale-New Haven Hospital
Elekta showcases C-RAD products in Japanese showroom
C-RAD hosts user meeting at ASTRO in cooperation with UTHSC San Antonio
Amounts in KSEK Net sales Operating loss Net results after tax Cash Share price 1) Order intake Order backlog | Jan-Sept | 12m |
2015 2014 45 712 34 619 -14 290 -8 911 -15 036 -2 350 4 634 4 568 15.6 15.0 61 544 43 809 52 893 29 357 | Rolling 64 285 -19 232 -19 832 4 634 15.6 86 105 59 900 | |
1) in SEK, end of period | ||
We are excited to see the continuation of a very positive growth trend at C-RAD and very good exposure for the product portfolio in our core markets, including through partner channels. Order intake for the first three quarters for our largest business segment - positioning products, including Catalyst and Sentinel products - increased by 62% to 45.7 MSEK; for service products it precisely doubled to 6.8 MSEK, reflecting a strong interest in value-added products.
The overall increase in orders at the Group level was 40%, for a total of 61.5 MSEK. Third-quarter revenues were up 47% on Q3 2014, at 15.4 MSEK. The momentum we gained during the third quarter is expected to accelerate in the fourth quarter, also reflecting the expanded reach of our sales force.
For Skandionkliniken in Sweden - the first proton therapy facility in Scandinavia, we participated in a complex public tender that had been contested, but ultimately resolved in C-RAD's favor, yielding two orders to an order of four systems with options for two more. The first system was installed in October - our first ever in the rapidly developing proton and particle therapy market. The remaining systems are also expected to be commissioned in Q4 2015.
The third quarter kicked off with completion of the acquisition of Cyrpa, the Franco-Belgian group with innovative laser solutions for patient positioning and virtual simulation within radiation therapy. Cyrpa was consolidated from an accounting perspective during the third quarter. As a first step the joint sales force was restructured to further leverage respective market strengths. While responsibility for the two product linesremains separate, the merged sales force is deployed in an efficient way that will yield new synergies in reaching customers.
GE Healthcare entered into a sales and distribution agreement for C-RAD's Sentinel 4DCT™ systems and Cyrpa High Impact Technology (HIT) laser systems. GE will offer these solutions through its price book from Q4 2015 on, making them available to the GE salesforce and their customers worldwide. The C- RAD team will train the GE Healthcare sales force in the US, providing the necessary advanced technical knowledge.
A procurement agreement with Yale-New Haven Hospital in Connecticut, USA, resulted in a multi-site purchase order to supply surface tracking technology. Four systems have been ordered; two systems are already up and running and the others are scheduled for installation in Q4 2015. For C-RAD it is a good opportunity to use Yale-New Haven Hospital as a reference site for clinical demonstrations of Sentinel 4DCT and Catalyst HD.
An order was received from the Campania region in southern Italy for four Catalyst™ systems as well as four Sentinel™ 4DCT systems, to be installed in three cancer treatment clinics. Delivery is scheduled for Q4 2015.
C-RAD conducted its first user meeting in conjunction with the American Society for Radiation Oncology (ASTRO) meeting in October in San Antonio, Texas, USA, with over 30 participants from around the world, mainly the US. The meeting was conducted in cooperation with the University of Texas Health Science Center San Antonio, which contributed its clinical and scientific input on breast cancer treatment and stereotactic treatments, and also hosted a site visit where Catalyst HD was installed and clinically operational. At the ASTRO trade event, our increased exposure in the market led to a very high interest in the C-RAD booth and portfolio, achieving 50% more customer leads than the previous year.
For Gemini, our focus on recent developments was to improve robustness of the system, which has proved to be successful, accompanied by even further improvements in image quality. This takes us into a new phase, in which we are evaluating the physical parameters against existing standards and competitive products. On the commercial side discussion with potential customers are ongoing.
We have entered Q4 with a strong showing, where we expect to see our investment in an expanded sales force to continue to bear fruit, which should reach its full yield in 2016.
C-RAD signed a contract to equip Skandion Clinic in Uppsala, Sweden, with its surface tracking solution, following a successful a public tender. Both of the clinic's treatment rooms will be equipped with a Catalyst system, and a CT room and the patient preparation room will be equipped with the C-RAD system.
C-RAD has released a new interface that links the C-RAD Catalyst™ system to TrueBeam® linear accelerators from Varian Medical Systems for treating cancer with image-guided radiotherapy and radiosurgery. The interface supports advanced treatment techniques. With this release, C-RAD has become a leading provider of optical surface tracking solutions that can connect to linear accelerators from the two main system suppliers.
C-RAD has acquired the remaining 71% of the shares in the Franco-Belgian Cyrpa group. Cyrpa develops innovative laser solutions for patient positioning and virtual simulation within radiation therapy. C-RAD and Cyrpa launched their first joint product for 4D Imaging and Virtual Simulation in 2014. When the purchase price allocation as requested by IFRS 3, was performed we saw the need to restate comparative numbers in line with requirements of IAS 1. This restatement goes bac k to the initial purchase of 29% share in Cyrpa.
Further information on page 20.
C-RAD secured a large order including two Catalyst HD™ systems and a Sentinel 4DCT™ system for Gjövik Hospital in Norway, about 120 km north of Oslo. As part of a
comprehensive tender the hospital is now upgrading its radiation oncology department with the high-end solution for patient positioning and monitoring from C-RAD.
C-RADs Italian distributor - TecnoSan S.a.s. - secured an order for four Catalyst™ systems as well as four Sentinel™ 4DCT systems, to be installed in three cancer treatment clinics in
the Campania region in southern Italy.
C-RAD received the first order for a Catalyst™ and a Sentinel™ 4DCT system for a cancer treatment center in Japan, the second largest radiotherapy market worldwide. Both systems will be installed in the Katsura University Hospital located at the University of Kyoto, opening up to an important trend setting market.
C-RAD released its strategy for further growth in February, including the expansion of the direct sales and service force in ke y markets. C-RAD has now further increased its presence in the US by hiring two new regional sales manager for the Midwest and Southeast region.
The board of C-RAD decided on a directed share issue to the long-term institutional and private investors of circa 25 MSEK before issue expenses. The decision was taken with the authorization from the Annual General Meeting 2015. The proceeds will be used to (I) finance the expansion of the sales organ ization within the company core markets, (II) commercialize the spread of the GEMini system and (III) allow for a bigger investment in partnerships.
C-RAD has launched a warrant program for its employees, which has generated a great interest. Employees have signed up for a to tal of 284,330 options, which is 42% more than the initial volume offered.
C-RAD's Italian distributor - TecnoSan S.a.s. - secured an order for two Catalyst™ systems as well as one Sentinel™ 4DCT system from the Ospedale del Mare cancer clinic in Naples.
C-RAD secured an order for a Catalyst™, a Catalyst HD™, and a Sentinel™ system from Klinikum Bayreuth GmbH, which operates the radiation oncology clinic in Upper Franconia,
Bavaria, in southern Germany.
C-RAD has successfully validated the interface for its Catalyst™ product line, which controls the radiation beam for proton and particle treatment systems. The IBA gating interface validation was performed at Westdeutsches Protonentherapiezentrum Essen, in Germany .
C-RAD's AGM elected Kicki Wallje-Lund as a new board member. She has long experience in business development and boards of directors in various international companies and currently is the CEO Wellnet AB in Stockholm. Among other board assignments, Kicki has been a member of the board for Betsso n AB since 2007.
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