SECOND QUARTER 2022
- Order intake increased 46% to 105.6 (72.3) MSEK (35% in constant currencies).
- Order backlog amounted to 498.6 (352.0) MSEK.
- Revenue increased 4% to 62.7 (60.5) MSEK (-2% in constant currencies).
- Operating income amounted to 0.8 (6.0) MSEK, corresponding to a margin of 1.2 (10.0) %.
- Net results after tax amounted -2.9 (5.6) MSEK.
- Result per share amounted to -0.09 (0.17) SEK.
INTERIM PERIOD JANUARY – JUNE 2022
- Order intake amounted to 187.1 (138.6) MSEK, corresponding to a growth of 35% (27% in constant currencies).
- Revenue amounted to 119.0 (120.5) MSEK, corresponding to a 1 % decrease (-6% in constant currencies)
- Operating income amounted to 0.9 (12.3) MSEK, corresponding to a margin of 0.8 (10.2) %
- Net results after tax amounted -4.1(8.8) MSEK
- Result per share amounted to -0.12 (0.26) SEK
Comments from Tim Thurn, CEO
In the second quarter we again saw a strong order intake with a growth of 46 perecnt compared to last year. Order intake for the second quarter and for the first six months are far exceeding historical levels for corresponding periods. Sales of our main product line – positioning products – grew with 77 percent. More and more cancer treatments centers are considering surface tracking to be standard in their treatment procedures, the ultimate confirmation of that is continuously more orders being placed with C-RAD for our state-of-the-art solutions.
The year opened with a challenging situation with the return of the pandemic and subsequent lockdowns in China, that entailed negative effects on our revenue. Hence, it is encouraging returning to revenue growth again. Americas is showing a solid growth of 24 percent. The growth in APAC is due to some recovery in China but mainly attributed to other markets in the region performing well. Previous year EMEA had a very strong quarter that was not matched this year. I do want to emphasize that our revenue is completely connected with us delivering the orders to the customer. Typically, our orders are destined for newly built cancer centers, requesting delivery of the products when the construction plan is ready to receive it. We naturally push for quick deliveries, but it is important to highlight that our deliveries are subject to external factors beyond our control, which brings volatility in revenue as a natural part of our business. We are ending the quarter with a record high order backlog of 499 MSEK, which in its entirety will convert into revenue in the future.
I want to highlight the continuous success of our service business. For the first six months the growth in order intake amounts to 49 percent and corresponding for revenue is a growth of 41 percent. This confirms the trend of an increasing number of customers willing to outsource services to C-RAD and therewith maintain an up-to-date, highly available system over the lifetime of the product. From a financial perspective the service business has a positive impact on our margins and contributes to a more solid foundation with recurring revenue, which in the quarter amounted to 18 percent of the total revenue.
Operating income amounted to 0.8 MSEK and a margin of 1.2 percent. The decrease compared to last year is a function of us investing in an organization to generate exponential growth, in combination with increased cost mainly due to a normalization of how we engage with customers and the return of physical marketing events. Our order intake growth is certainly confirming that we are already generating a return on our investments. That said, naturally revenue is what defines our operating income, volatility in this ratio is to be expected.
I cannot repeat enough times that the ultimate success of C-RAD resides in surface tracking becoming a true standard within radiation therapy. Our performance is without doubt confirming that we are well on our way on this path. Earlier this year we have decided to further strengthen our commercial team in strategically important markets to further capitalize on this opportunity. The well recognized organization ESTRO-ACROP recently released guidelines on surface guided radiation therapy, confirming the clear clinical benefits of this technology. Another sign that it is not a question if surface tracking will become standard of care, rather when.
I am immensely proud of what C-RAD has become during the last 10 years, a period when I have had the privilege to be CEO of a truly dedicated company in the fight against cancer. As CEO and shareholder, I am completely committed to continue this journey throughout 2022. My commitment includes assuring a successful hand over to my successor, Cecilia de Leeuw, who is a great addition to C-RAD for continuing building a successful growth company providing society with improved cancer care.
Tim Thurn, CEO