THIRD QUARTER 2022
- Order intake decreased 1 % to 80.9 (82.1) MSEK (-11 % in constant currencies).
- Order backlog amounted to 493.3 (372.2) MSEK.
- Revenue increased 32% to 83.5 (63.2) MSEK
- (23% in constant currencies).
- Operating income amounted to 14.6 (8.8) MSEK, corresponding to a margin of 17.5 (13.9) %.
- Net results after tax amounted to 7.1 (4.9) MSEK.
- Result per share amounted to 0.21 (0.15) SEK.
INTERIM PERIOD JANUARY – SEPTEMBER 2022
- Order intake amounted to 268.1 (221.2) MSEK, corresponding to a growth of 21% (13% in constant currencies).
- Revenue amounted to 202.5 (183.7) MSEK, corresponding to a 10 % increase (5% in constant currencies)
- Operating income amounted to 15.5 (21.1) MSEK, corresponding to a margin of 7.7 (11.5) %
- Net results after tax amounted 3.0 (13.7) MSEK
- Result per share amounted to 0.09 (0.41) SEK
COMMENTS FROM TIM THURN; CEO:
We are closing the third quarter with an All-Time High revenue of 83.5 MSEK and an operating income of 14,6 MSEK – translating into a growth of 32 percent and a margin of 17,5%.
We saw substantial revenue growth across all geographies during the third quarter, as a result of an order conversion of projects that were won earlier in the year and a Chinese market that continues to recover – allowing us to resume shipments and installations.
For the first nine months we are delivering order intake growth across all regions. The third quarter displays the, for our industry usual, volatility between quarters. While order intake in EMEA and Americas declined, the progress in Asia continues. Our investments in the Indian market deliver results and we are building a healthy project pipeline. Also, our cooperation with the Australian healthcare provider Genesis Care develops very positive and strengthens our installed base in the region. We see the progress as a confirmation of the technology becoming standard of care. We assess the current global attachment rate of surface tracking technology to new linac projects to be around 30 percent, an attachment rate that is higher in the western markets than in the fast-growing markets in the APAC region.
Mid-October the decision in a country wide tender in Italy for radiation therapy equipment has been announced. Pending the appeal period, C-RAD’s local distributor Tecnosan SRL won most of the positioning technology based on C-RAD Catalyst+ HD and Sentinel 4DCT. This tender sends positive signals: First, surface tracking was considered an essential technology – reconfirming our assessment of surface tracking becoming standard of care in advanced radiation therapy, and second, C-RAD’s offering was assessed to be superior to what the competitors have offered underlining the strength of our value proposition, and third, this tender decision translates into the largest order in C-RAD’s history – worth 45 MSEK. The service business continues to grow at a high pace, with a rising number of new customers signing up for a service contract and an increasing population renewing their service commitments after the initial service contract expired. This is the ultimate confirmation of a successful relationship between the customer and C-RAD over the life cycle of the product. We are closely monitoring the contribution of service revenue as a function of total revenue, which for the first nine months amount to 17 percent as compared to 13 percent during the last year. This is a trend we foresee continuing over time.
I am pleased to report progress in our partnership with the linac vendor Accuray, which was announced in October last year. On the ASTRO 2022 trade show we jointly demonstrated a breast cancer treatment package on Accuray’s Radixact System with a fully integrated and automated surface-guided radiation therapy (SGRT) solution. Breast cancer remains a significant women’s health issue and more precise treatment technologies can have a major impact on extending and improving the quality of patients’ lives. This is another clear indicator of surface tracking being viewed as an important contributor in the fight against cancer.
Currently there is certainly geopolitical challenges of magnitude ongoing on the global scene – resulting in high inflation, energy prices on the rice, shortages of components and difficulties in accessing certain markets. Thus far C-RAD has been able to manoeuvre in this challenging environment, meanwhile the adoption of our technology has continued, delivering growth for C-RAD, reflected in revenue and result. We remain positive about our opportunity in the market and have decided, and communicated earlier this year, to strengthen the presence of our commercial organization in strategically important markets. This process is close to being complete with most new team members having joined us during the last months.
I am excited and proud of what the C-RAD team has achieved during the last years. We made immense progress to build a company with global presence and to make the technology become standard of care, a technology that really makes a difference for the patients in need of cancer care. As the final step of a well-prepared transition, in December I will hand over to Cecilia de Leeuw, who will succeed me in the position as CEO. I wish her and the entire C-RAD team much success.
Tim Thurn, CEO