2021 Opens With Growth And Improved Profitability

STOCKHOLM, May 7, 2021 /PRNewswire/ --

FIRST QUARTER 2021      

• Order intake amounted to 66.3 (47.7) MSEK, corresponding to a growth of 39% (49% in constant currencies).
• Order backlog amounted to 340.1 (261.5) MSEK
• Revenue amounted to 60.0 (51.8) MSEK, corresponding to a 16% growth (23% in constant currencies)
• Operating profit amounted to 6.2 (1.0) MSEK, corresponding to a margin of 10.4 (1.9) %
• Net results after tax amounted 3.2 (0.4) MSEK
• Result per share amounted to 0.09 (0.01) SEK

CEO comment

We are starting off 2021 with another solid quarter that I am very pleased with. The revenue growth combined with marginal increase in cost delivers a record high first quarter operating profit for the company. The growth in order intake of almost 50 percent in constant currencies also signals a strong start of the year. COVID-19 is still affecting our business, but it is very encouraging to see that customers refocus on upgrading their cancer centres with surface tracking on the journey to establish the technology as standard of care.

Order Intake continuous to grow at high pace in all our product segments. The cooperation with Elekta in North America is developing well and the region has achieved a strong recovery compared to last year. Both companies' teams are working tight together to develop the market and to present the combined value proposition to customers. The strong momentum in the APAC region, driven by the Chinese market, continuous in the first quarter - reflected in order intake and revenue. In the EIMEA region the purchasing behavior is still somewhat affected by COVID-19. The impact partly correlates with the COVID-19 policies of the respective governments, but we also noted that the approval processes for capital investments, both for private and governmental healthcare providers, became longer. Notwithstanding, we have a largely stable result both in order intake as in revenue within the region.

With growing revenue, an improved gross margin to 61 percent and operating expense more or less at the same level as last year we are delivering a solid result with an operating margin of 10 percent.

With the implementation of vaccination programs progressing and COVID-19 related lethal going down, the focus in the healthcare sector is shifting back on cancer care. The clinical advantages of high precision radiation therapy are widely researched and recent developments in the reimbursement systems in major markets, enable customers to invest in required equipment to deliver safe and accurate radiation therapy for the patients in need.

Based on our firm believe that surface tracking is on its way to become standard of care in high precision radiation therapy, we have set ambitious targets for this year. Our strategy is based on a clear commitment to strengthen our value proposition and our market access, while we want to further develop our cooperation with OEM partners. We expect that product sales continues to grow for the foreseeable future at notably higher pace than the overall radiation therapy market. The rapid development in the service business over the past years continues to show a positive trend. It is our expectation that services will continue to grow and over time constitute a larger share of our revenues.

C-RAD has a great product and a highly motivated team. I am excited on what we have achieved so far and look optimistically at the future. With that said, the market continuous to be volatile and comes with a distinct seasonality pattern, which might have an impact on both order intake and revenue in individual quarters. I am very confident about our mid- and long-term opportunity.

Tim Thurn, CEO

About C-RAD

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 more information on C-RAD, please visit http://www.c-rad.com

For further information:

Tim Thurn, CEO C-RAD AB, Phone [phone], Email [e-mail]

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 May 7^th 2021.

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C-RAD Q1 report_ENG

 

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SOURCE C-RAD

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