Interim / Quarterly Report • Nov 17, 2023
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
"In the third quarter of 2023, net sales rose by 20 percent. Revenue from support rose by 23 percent. Operating profit amounted to SEK 28.6 M (12.0) in the third quarter and to SEK 70.5 M (22.0) for the first nine months."
Johan Löf, CEO of RaySearch
| AMOUNTS IN SEK '000 | JULY-SEP | JAN-SEP | OCT 2022 - | FULL YEAR |
||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | SEP 2023 | 2022 | |
| Net sales | 252,883 | 210,881 | 722,519 | 579,265 | 986,902 | 843,648 |
| Operating profit | 28,616 | 12,007 | 70,518 | 22,044 | 91,218 | 42,744 |
| Operating margin, % | 11.3 | 5.7 | 9.8 | 3.8 | 9.2 | 5.1 |
| Profit for the period | 21,551 | 10,073 | 50,032 | 9,640 | 64,170 | 23,778 |
| Earnings per share before/after dilution, SEK | 0.63 | 0.29 | 1.46 | 0.28 | 1.87 | 0.69 |
| Cash flow from operating activities | 124,378 | 11,292 | 340,159 | 204,531 | 462,285 | 326,657 |
| Cash flow from the period | 63,536 | -47,990 | 144,723 | 4,015 | 187,492 | 46,784 |
| Return on equity, % | 3.1 | 1.6 | 7.3 | 1.5 | 9.5 | 3.7 |
| Equity/assets ratio, % at the end of the period | 38.0 | 37.4 | 38.0 | 37.4 | 37.3 | 35.0 |
| Share price at the end of the period, SEK | 82.9 | 47.6 | 82.9 | 47.6 | 82.9 | 68.0 |
1 For definitions of key ratios, see page 21.
I am pleased to announce that our positive trend is continuing. Sales have reached record levels for the fifth consecutive quarter and been the highest ever for a corresponding quarter. Sales in the third quarter amounted to SEK 253 M, up 20 percent (16 percent at unchanged exchange rates) compared with the year-on-year period. Cash flow for the quarter was SEK 64 M and EBIT amounted to SEK 29 M. This is equivalent to an operating margin of 11.3 percent, which is an improvement on the year-on-year period (when operating margin was 5.7 percent) and was mainly because sales during the quarter were significantly higher than during the third quarter of 2022. Overall, we are maintaining our momentum and opportunities for continued growth look promising, which means we are standing firm by our active focus on marketing activities.
As in earlier quarters of the year, sales for the third quarter were not derived from any major orders (the largest single revenue item was SEK 20 M), but mainly comprise a combination of revenues from many small and normal-sized orders as well as support revenue. It is worth noting that support revenue is continuing to grow in a stable and positive direction. The growth is due to new sales of licenses in combination with the fact that we are losing practically no customers. To summarize, RaySearch has a strong financial position with cash and cash equivalents of SEK 307 M, stable cash flow and no loans.
I am proud to note that ten of the 15 top cancer hospitals worldwide are currently our customers, according to a ranking by Newsweek. This reflects our strong position in the top segment and confirms that RaySearch is a leading vendor of high-quality cancer treatment. Our solutions are appreciated by the majority of the most advanced cancer hospitals around the world, which also indicates that over time we ought to be able to continue to increase our market share.
During the autumn, our long-term partnership with MedAustron in Austria was further expanded through a new research agreement. MedAustron was the first center in the world to use the RayCommand treatment control system to treat patients. Through this milestone, in May 2022 MedAustron also became the first oncology center to use RayStation, RayCare, and RayCommand together – a combination referred to as RayWorld – to treat patients.
At the end of September, we received a significant order from our business partner IBA. The order includes implementation of both RayStation and RayCare at C.R.O. National Cancer Institute in Aviano, Italy. This strengthens our position as the leading partner in proton therapy in Europe. The combination of RayStation and RayCare provides an integrated and unified solution for treating patients at C.R.O. Aviano, when combined with an IBA proton therapy machine. The center is expected to start treating patients by the end of 2024.
In September, we also signed two important agreements in the US, with Oregon Health & Science University (OHSU) and with Baptist Health Lexington in Kentucky, both of which generated revenue during the period.
The agreement with Baptist Health Lexington pertains to the implementation of RayStation at two large centers, Baptist Health Lexington and Baptist Health Hamburg. Both centers use several different delivery systems and as
RayStation supports virtually all commercially available machines, a strategy we have had from the beginning, the system can be used for treatment planning for all of these.
The order from OHSU is for RayStation, which the center will use for treatment planning together with the Radixact system from Accuray.
In October, the Paul Scherrer Institute (PSI) in Switzerland chose RayStation as its new system for proton therapy. PSI is renowned worldwide for its expertise in proton therapy and alongside the procurement of RayStation, we also intend to
engage in a collaborative research initiative focusing on advanced proton therapy solutions, such as online adaptive.
The Mass General Cancer Center, which was one of the first in the world to offer proton therapy, decided in October to transition its proton treatment planning system to RayStation. The first patient was treated in 2011 using RayStation, and this took place here at Mass General. This makes them an extremely important collaboration partner for us. Our more than ten-year partnership is now entering a new phase as we transition from it solely encompassing photon radiation therapy. The center can see an opportunity to streamline treatment planning, and all of its external beam planning will now be done on a single platform.
In early October, we took part, as usual, at ASTRO, which is the leading conference in our field. During the congress, which took place this year in San Diego, we showcased and demonstrated our latest and most exciting innovations in areas such as brachy planning, CyberKnife planning and Synthetic CT generation. The response was highly favorable and our discussions with existing and potential business partners were fruitful.
It is clear that the latest version of RayCare has aroused great enthusiasm. Improved functionality together with Varian's certification earlier this year of interoperability between RayCare and TrueBeam has led to a significant increase in interest for RayCare.
As previously communicated, focus is on improving the operating margin, with the long-term target of a minimum of 20 percent within three years.
As we look back on three strong initial quarters in 2023, I have every reason to believe that the positive trend will continue during the year's final quarter. Our strong order backlog (SEK 1,966 M in the quarter) and the ever-growing support revenue also suggest continued strong growth and thereby a positive end to the year.
Stockholm, November 17, 2023
Johan Löf Founder and CEO
RaySearch operates in a market with uneven order flows where large individual orders can have a substantial impact on revenue recognition between the quarters and, because the company has limited (less than 10 percent) variable costs for license revenue, operating profit is affected by an amount that is nearly as high. For this reason, a longer perspective than a few quarters should be taken.
In the third quarter of 2023, order intake amounted to SEK 240.7 M (219.1), an increase by 9.9 percent year-on-year. License order intake amounted to SEK 112.5 M (86.1), an increase of 30.8 percent, while order intake for support was SEK 101.7 M (97.7), an increase of 4.0 percent.
| Order intake (amounts in SEK M) | Q3-23 | Q2-23 | Q1-23 | Q4-22 | Q3-22 | Rolling 12 months | Full-year 2022 |
|---|---|---|---|---|---|---|---|
| Licenses | 112.5 | 94.4 | 94.8 | 284.9 | 86.1 | 586.6 | 569.3 |
| Support (incl. warranty support) | 101.7 | 119.7 | 59.2 | 173.4 | 97.7 | 454.0 | 501.0 |
| Hardware | 16.1 | 17.5 | 41.8 | 21.4 | 25.9 | 96.8 | 92.7 |
| Training and other | 10.4 | 7.6 | 10.8 | 34.7 | 9.4 | 63.5 | 55.5 |
| Total order intake | 240.7 | 239.2 | 206.6 | 514.4 | 219.1 | 1,200.9 | 1,218.5 |
| Order backlog (amounts in SEK M) | Q3-23 | Q2-23 | Q1-23 | Q4-22 | Q3-22 | ||
| Licenses | 429.7 | 425.0 | 397.1 | 395.3 | 237.3 | ||
| Support (incl. warranty support) | 1,379.5 | 1,350.7 | 1,324.2 | 1,380.0 | 1,320.5 | ||
| Hardware | 50.8 | 74.4 | 80.0 | 64.7 | 81.8 | ||
| Training and other | 106.3 | 104.8 | 102.0 | 100.1 | 75.6 | ||
| Total order backlog at the end of the period | 1,966.3 | 1,954.9 | 1,903.3 | 1,940.1 | 1,715.2 |
In the first nine months of 2023, order intake amounted to SEK 686.5 M (704.1), a decrease of 2.5 percent compared to the same period last year. Order intake of licenses amounted to SEK 301.7 M (284.3), a increase of 6.1 percent, while order intake for support amounted to SEK 280.6 M (327.6), a decrease of 14.3 percent.
At September 30, 2023, the total order backlog was SEK 1,966.3 M (1,715.2), of which SEK 525.5 M is expected to generate revenue over the next 12 months. The remaining amount in the order backlog mainly pertains to support commitments that are primarily expected to generate revenue during a subsequent four-year period.
In the third quarter of 2023, net sales amounted to SEK 252.9 M (210.9), an increase of 19.9 percent compared to the same period last year. The change in sales at unchanged currencies was 15.5 percent (33.3).
License revenue amounted to SEK 97.9 M (76.4), an increase of 28.0 percent compared to last year. Support revenue amounted to SEK 107.2 M (87.4), an increase of 22.7 percent, accounting for 42 percent (41) of total net sales in the third quarter.
Hardware sales, which have a weaker operating margin, amounted to SEK 40.7 M (33.9). Excluding hardware sales, sales increased 19.9 percent compared the same period last year.
| Revenue (amounts in SEK M) | Q3-23 | Q2-23 | Q1-23 | Q4-22 | Q3-22 | Rolling 12 months |
Full-year 2022 |
|---|---|---|---|---|---|---|---|
| License revenue | 97.9 | 100.7 | 104.3 | 131.9 | 76.4 | 434.8 | 388.5 |
| Support revenue (incl. warranty support) | 107.2 | 101.8 | 86.8 | 85.9 | 87.4 | 381.7 | 323.1 |
| Hardware revenue | 40.7 | 27.0 | 29.3 | 40.5 | 33.9 | 137.5 | 105.8 |
| Training and other revenue | 7.1 | 10.0 | 9.8 | 6.1 | 13.1 | 33.0 | 26.3 |
| Net sales | 252.9 | 239.5 | 230.2 | 264.4 | 210.9 | 987.0 | 843.6 |
| Change in sales, corresp. period, % | 19.9 | 49.4 | 10.6 | 40.2 | 54.6 | 28.5 | 31.5 |
| Change in sales at unchanged exchange rates, corresp. period, % | 15.5 | 41.2 | 3.7 | 41.3 | 33.9 | 24.0 | 23.2 |
In the first nine months of 2023, net sales amounted to 722.5 M (579.3), an increase of 24.7 percent. License revenue amounted to SEK 302.9 M (256.6), support revenue increased to SEK 295.8 M (237.2), hardware revenue increased to SEK 97.0 M (65.3) and training and other revenue increased to SEK 26.9 M (20.3).
In the first nine months of 2023, net sales had the following geographic distribution: North America, 42 percent (47); Asia, Pacific region and Middle East, 19 percent (22); Europe and the rest of the world, 39 percent (31).
In the third quarter of 2023, operating profit increased to SEK 28.6 M (12.0), representing an operating margin of 11.3 percent (5.7). Net sales increased in the third quarter to SEK 253 M (211) and was mainly due to higher license and support revenue, which amounted to SEK 205 M (164) in total for the July-September period. The bulk of this amount is derived from Europe and rest of the world. Operating expenses amounted to SEK 192.9 M (183.1) primarily due to higher selling expenses as a result of more normalized activity levels post-covid. The company's administrative expenses remain relatively high due to a continued high share of external consultants. However, the increase during the quarter is lower than what was noted in earlier quarters.
In the third quarter, the net of exchange-rate gains and losses amounted to SEK -0.3 M (13.0) since a large proportion of the Group's receivables are denominated in USD and EUR. Adjusted for the effects of these currency translations, operating profit for the third quarter would have amounted to SEK 28.9 M (-1.0).
During the first nine months, operating profit increased to SEK 70.5 M (22.0), representing an operating margin of 9.8 percent (3.8). The increase is attributable to higher net sales combined with a comparatively lower increase in administrative expenses and research and development costs in the nine-month period.
The company's net sales and earnings are impacted by USD/EUR to SEK exchange rates, since most sales are invoiced in USD and EUR, while most costs are denominated in SEK.
Based on the year's revenue, cost and currency structure (transaction exposure), a general change of one percentage point in the SEK against the USD exchange rate against it would have impacted consolidated operating profit by approximately +/- SEK 0.9 M in the third quarter of 2023, while a corresponding change in the EUR exchange rate would have impacted consolidated operating profit by approximately +/- SEK 1.2 M.
The Group follows the financial policy established by the Board, whereby exchange-rate fluctuations are not hedged.
RaySearch is a research and development-oriented company that makes significant investments in the development of software solutions for improved cancer treatment. At September 30, 2023, 198 employees (195) were engaged in research and development, corresponding to 52 percent (52) of the total number of employees.
| Capitalization of development costs | Q3-23 | Q2-23 | Q1-23 | Q4-22 | Q3-22 | Rolling 12 months |
Full-year 2022 |
|---|---|---|---|---|---|---|---|
| Research and development costs | 50.4 | 63.1 | 58.2 | 58.5 | 51.8 | 230.5 | 234.6 |
| Capitalization of development costs | -34.8 | -45.9 | -48.2 | -49.4 | -40.2 | -178.2 | -188.0 |
| Amortization of capitalized development costs | 45.7 | 40.5 | 40.0 | 50.9 | 50.9 | 177.1 | 192.2 |
| Research and development costs after adjustments for capitalization and amortization of development costs |
61.4 | 57.7 | 50.1 | 60.1 | 62.5 | 229.4 | 238.8 |
In 2023, RaySearch continued to invest in both existing products and future products. During the first nine months of 2023, research and development costs amounted to SEK 171.7 M (176.0), a decrease of 2.4 percent compared to the same period last year. The total costs amounted to 24 percent (30) of the company's net sales.
Capitalized development costs amounted to SEK 128.9 M (138.6) for the first nine months, which is a reduction of 7.0 percent compared to the same period last year. Accordingly, capitalized development costs amounted to 75 percent (79) of the total research and development costs for the first nine months of 2023.
Amortization of capitalized development costs amounted to SEK 126.2 M (141.3) for the first nine months of the year, which is a reduction of 10.7 percent compared to the same period last year. This reduction is attributable to the fact that some development projects were fully amortized at the end of 2022.
Total research and development costs (after adjustments for capitalization and amortization of development costs) amounted to SEK 169.1 M (178.7) during the first nine months of the year, a reduction of 5.4 percent compared to the same period last year.
In the third quarter of 2023, total amortization and depreciation decreased to SEK 73.9 M (77.9), a reduction of 5.2 percent compared to the same period last year. Amortization of intangible fixed assets amounted to SEK 45.8 M (51.0), of which amortization of capitalized development costs amounted to SEK 45.7 M (50.9).
Depreciation of tangible fixed assets amounted to SEK 28.1 M (26.9).
Total amortization and depreciation for the first nine months amounted to SEK 209.9 M (219.0), of which amortization of intangible fixed assets amounted to SEK 126.4 M (141.5), mainly related to capitalized development costs. Depreciation of tangible fixed assets amounted to SEK 83.5 M (77.5).
In the third quarter of 2023, profit after tax amounted to SEK 21.6 M (10.1), corresponding to earnings per share of SEK 0.63 (0.29) before and after dilution.
For the first nine months of 2023, profit after tax totaled SEK 50.0 M (9.6), representing earnings per share of SEK 1.46 (0.28) before and after dilution.
In the third quarter of 2023, the tax cost amounted to SEK 6.3 M (-0.4), corresponding to an effective tax rate of 22.6 percent (-4.3). For the first nine months of 2023, the tax cost amounted to SEK 16.2 M (4.5), corresponding to an effective tax rate of 24.5 percent (31.8).
In the third quarter of 2023, cash flow from operating activities was SEK 124.4 M (11.3). The change is primarily attributable to improved profit and the change in working capital as a result of temporarily higher accounts payable. In the first nine months, cash flow from operating activities was SEK 340.2 M (204.5).
In the third quarter, cash flow from investing activities was SEK -43.7 M (-44.4). Investments in intangible fixed assets amounted to SEK -34.8 M (-40.2) and mainly comprised capitalized development costs for the company's products – RayStation, RayCare, RayCommand and RayIntelligence. Investments in tangible fixed assets amounted to SEK -8.9 M (-4.2), and are attributable to investments in IT equipment. In the first nine months, cash flow from investing activities amounted to SEK -144.7 M (-148.6).
In the third quarter of 2023, cash flow from financing activities amounted to SEK -17.2 M (-14.9), and to SEK -50.7 M (-51.9) in the first nine months and comprised primarily the repayment of lease liabilities.
Cash flow for the period was SEK 63.5 M (-48.0) in the third quarter, and SEK 144.7 M (4.0) in the first nine months of the year.
At September 30, consolidated cash and cash equivalents amounted to SEK 306.6 M compared to SEK 160.3 M at December 31, 2022.
At September 30, 2023, RaySearch's total assets amounted to SEK 1,866.6 M compared to SEK 1,876.0 M at December 31, 2022. At September 30, the equity/assets ratio was 38.0 percent compared to 35.0 percent at fiscal year-end.
In June 2023, the company's credit facility was renegotiated with the bank. Accordingly, in addition to cash and cash equivalents of SEK 306.6 M, RaySearch has an overdraft facility of SEK 75.0 M (50.0) of which SEK 0 M (0) had been drawn at the end of the period. The previous unutilized revolving loan facility of SEK 150.0 M was terminated in conjunction with the increase of the overdraft facility from SEK 50 M to SEK 75 M.
At September 30, 2023, the company's interest-bearing liabilities, comprising only lease liabilities recognized in accordance with IFRS 16, amounted to SEK 506.3 M compared with SEK 555.3 at December 31, 2022.
At September 30, the Group's net debt amounted to SEK 199.6 M compared to SEK 395.0 M at December 31, 2022, a reduction that is mainly due to an increase in cash and cash equivalents and lower lease liabilities compared to the preceding year.
In the January-September period of 2023, the average number of employees in the Group was 372 (386). At the end of the third quarter, the Group had 383 employees (373), of whom 272 (269) were based in Sweden, and 111 (104) in foreign subsidiaries.
RaySearch Laboratories AB (publ) is the Parent Company of the RaySearch Group. Since the Parent Company's operations are consistent with the Group's operations in all material respects, the comments for the Group are also largely relevant for the Parent Company.
Differences in profitability between the Parent Company and the Group are attributable to the Parent Company accounting for a relatively high proportion of operating expenses, and to the capitalization of development costs being recognized in the Group but not in the Parent Company. The Parent Company was also not affected by the changes pertaining to lease recognition under IFRS 16, and instead continues to recognize lease payments as operating lease payments. This reduces operating profit compared with if IFRS 16 had been applied.
The Parent Company's current receivables mainly comprise receivables from Group companies and external customers.
At September 30, the total number of registered shares in RaySearch was 34,282,773, of which 7,654,975 were Class A and 26,627,798 Class B shares. The quotient value is SEK 0.50 and the company's share capital amounts to SEK 17,141,386.50. Holders of Class A shares are entitled to 10 votes per share, and holders of Class B shares are entitled to one vote per share, at general meetings. At September 30, 2023, the total number of votes in RaySearch was 103,177,548.
At September 30, 2023, the number of shareholders in RaySearch was 7,874, according to Euroclear, and the largest shareholders were as follows:
| Name | Class A shares | Class B shares | Total shares | Share capital, % |
Votes, % |
|---|---|---|---|---|---|
| Johan Löf | 5,443,084 | 218,393 | 5,661,477 | 16.5 | 53.0 |
| State Street Bank and Trust Co, W9 | - | 4,236,501 | 4,236,501 | 12.4 | 4.1 |
| BNP Paribas SA Paris, W8IMY (GC) | - | 2,361,307 | 2,361,307 | 6.9 | 2.3 |
| Swedbank Robur NY Teknik BTI | - | 1,800,000 | 1,800,000 | 5.3 | 1.7 |
| The bank of New York Mellon SA/NV. W8IMY | - | 1,477,336 | 1,477,336 | 4.3 | 1.4 |
| Anders Brahme | 1,150,161 | 150,000 | 1,300,161 | 3.8 | 11.3 |
| Andra AP-Fonden | - | 1,220,942 | 1,220,942 | 3.6 | 1.2 |
| Carl Filip Bergendal | 1,061,577 | 139,920 | 1,201,497 | 3.5 | 10.4 |
| JP Morgan Chase Bank NA, W8 | - | 897,248 | 897,248 | 2.6 | 0.9 |
| Tredje AP-fonden | - | 825,845 | 825,845 | 2.4 | 0.8 |
| Total, 10 largest shareholders | 7,654,822 | 13,327,492 | 20 982,314 | 61.2 | 87.2 |
| Others | 153 | 13,300,306 | 13,300,459 | 38.8 | 12.8 |
| Total | 7,654,975 | 26 627,798 | 34,282,773 | 100 | 100 |
Source: Euroclear
As a global Group with operations in different parts of the world, RaySearch is exposed to various risks and uncertainties, such as market risk, operational and legal risk, as well as financial risk pertaining to exchange-rate fluctuations, interest rates, liquidity and financing opportunities. RaySearch's risk management aims to identify, measure and reduce risks related to the Group's transactions and operations. For more information about Raysearch's risk exposure and risk management, refer to pages 30-32 of RaySearch's 2022 Annual Report. There have been no significant changes with any impact on the risks reported.
RaySearch's customers are healthcare providers and the company's operations are somewhat characterized by seasonal variations that are typical for the industry, whereby the fourth quarter is normally the strongest – mainly because many customers have budgets that follow the calendar year.
Sustainability is a key aspect of RaySearch's strategy and operations, and the company is working actively to become a sustainable enterprise. The primary aim of RaySearch's operations is to help cancer clinics improve and save the lives of cancer patients. Through innovative software solutions, the company is continuously striving to improve and streamline workflows in clinical environments and to improve treatment outcomes for cancer patients. The customer value created presents business opportunities for RaySearch, but also major social benefit and economic gains.
The negative environmental impact of the company's products is limited. The company's environmental impact is mainly related to the purchase of goods and services, energy use and transportation. RaySearch aims to contribute to sustainable development and therefore works actively to improve the company's environmental performance wherever this is economically viable. More information about the company's environmental and sustainability initiatives is available in the company's Sustainability Report on pages 10-20 of RaySearch's 2022 Annual Report.
The Board of Directors and CEO give their assurance that this interim report gives a true and fair view of the Group's and the Parent Company's operations, position and earnings, and describes the significant risks and uncertainties facing the Parent Company and the companies included in the Group.
Stockholm, November 17, 2023 RaySearch Laboratories AB (publ)
Hans Wigzell Chairman of the Board Johan Löf CEO and Board member
Carl Filip Bergendal Board member
Britta Wallgren Board member
Günther Mårder Board member
We have reviewed the condensed interim financial information (interim report) of RaySearch Laboratories AB (publ) as of September 30, 2023, and the nine months period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity.
A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
See the signature and date on the Swedish version of the Audit Report
Deloitte AB Kent Åkerlund Authorized public accountant
Johan Löf, CEO Tel: +46 (0)8 510 530 00 Email: [email protected] Annika Blondeau Henriksson, interim CFO Tel: +46 (0)8 510 530 00 Email: [email protected]
The information contained in this interim report is such that RaySearch Laboratories AB (publ) is obliged to disclose under the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication on November 17, 2023 at 7:45 a.m. CET.
CEO Johan Löf and interim CFO Annika Blondeau Henriksson will present RaySearch's interim report for January - September 2023 at a webcast to be held in English on Friday, November 17, 2023 at 10:00-10:30 a.m. CET.
Link to webcast: RaySearch Q3 2023
You can also join the webcast by phone: Sweden +46 (0) 8 505 100 31 UK: +44 (0) 207 107 06 13 US: +1 (1) 631 570 56 13
| Year-end report, 2023 | February 23, 2024 |
|---|---|
| Interim report first quarter, 2024 | May 17, 2024 |
| Annual Report, 2023 | April 26, 2024 |
| Annual General Meeting, 2024 | May 22, 2024 |
| Interim report second quarter, 2024 | August 16, 2024 |
| Interim report third quarter, 2024 | November 8, 2024 |
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | OKT 2022- | FULL-YEAR | ||
|---|---|---|---|---|---|---|
| Note | 2023 | 2022 | 2023 | 2022 | SEP-23 | 2022 |
| Net sales 2,3 |
252,883 | 210,881 | 722,519 | 579,265 | 986,902 | 843,648 |
| Cost of goods sold1 | -30,834 | -28,769 | -76,777 | -56,814 | -114,954 | -94,991 |
| Gross profit | 222,049 | 182,112 | 645,742 | 522,451 | 871,948 | 748,657 |
| Other operating income | 5,155 | 17,109 | 15,023 | 40,331 | 24,196 | 49,504 |
| Selling expenses | -88,670 | -79,352 | -260,076 | -220,460 | -349,040 | -309,424 |
| Administrative expenses | -42,852 | -41,269 | -143,822 | -124,276 | -191,265 | -171,719 |
| Research and development costs | -61,351 | -62,515 | -169,106 | -178,689 | -229,186 | -238,769 |
| Other operating expenses | -5,715 | -4,078 | -17,243 | -17,313 | -35,435 | -35,505 |
| Operating profit | 28,616 | 12,007 | 70,518 | 22,044 | 91,218 | 42,744 |
| Loss from financial items | -758 | -2,348 | -4,248 | -7,918 | -6,699 | -10,369 |
| Profit before tax | 27,858 | 9,659 | 66,270 | 14,126 | 84,519 | 32,375 |
| Tax | -6,307 | 414 | -16,238 | -4,486 | -20,349 | -8,597 |
| Profit for the period2 | 21,551 | 10,073 | 50,032 | 9,640 | 64,170 | 23,778 |
| Other comprehensive income | ||||||
| Items to be reclassified to profit or loss | ||||||
| Translation difference of foreign operations for the period | -668 | 3,305 | 1,824 | 7,013 | -123 | 5,066 |
| Comprehensive income for the period2 | 20,883 | 13,378 | 51,856 | 16,653 | 64,047 | 28,844 |
| Earnings per share before and after dilution (SEK) | 0.63 | 0.29 | 1.46 | 0.28 | 1.87 | 0.69 |
1Comprises costs for hardware and license costs paid, but not amortization of capitalized development costs, which are included in research and development costs. 2 Fully (100 percent) attributable to Parent Company shareholders.
| AMOUNTS IN SEK 000s Note |
Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Intangible fixed assets | 521,130 | 520,258 | 518,663 |
| Tangible fixed assets | 589,206 | 634,095 | 649,070 |
| Deferred tax assets | 14,081 | 27,438 | 25,598 |
| Other long-term receivables1) | 17,731 | 6,829 | 54,697 |
| Total fixed assets | 1,142,148 | 1,188,620 | 1,248,028 |
| Inventories | 19,823 | 29,443 | 14,091 |
| Billed customer receivables | 190,626 | 139,695 | 246,742 |
| Unbilled customer receivables | 110,342 | 160,706 | 123,827 |
| Other current receivables | 97,033 | 87,372 | 82,994 |
| Cash and cash equivalents | 306,632 | 118,194 | 160,268 |
| Total current assets | 724,456 | 535,410 | 627,922 |
| TOTAL ASSETS | 1,866,604 | 1,724,030 | 1,875,950 |
| EQUITY AND LIABILITIES | |||
| Equity | 709,012 | 644,964 | 657,156 |
| Deferred tax liabilities | 107,318 | 107,201 | 106,874 |
| Long-term lease liabilities | 449,351 | 477,648 | 497,079 |
| Other long-term liabilities | 878 | 879 | 743 |
| Total long-term liabilities | 557,547 | 585,728 | 604,696 |
| Accounts payable | 51,379 | 25,629 | 24,030 |
| Current lease liabilities | 56,924 | 53,940 | 58,307 |
| Other current liabilities | 491,742 | 413,769 | 531,761 |
| Total current liabilities | 600,045 | 493,338 | 614,098 |
| TOTAL EQUITY AND LIABILITIES | 1,866,604 | 1,724,030 | 1,875,950 |
1) The bulk of this item consists of long-term unbilled customer receivables
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | FULL-YEAR | ||
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022 | |
| Opening balance | 688,129 | 631,587 | 657,156 | 628,312 | 628,312 |
| Profit for the period | 21,551 | 10,073 | 50,032 | 9,640 | 23,778 |
| Translation difference for the period | -668 | 3,305 | 1,824 | 7,013 | 5,066 |
| Comprehensive income for the year | 20,883 | 13,378 | 51,856 | 16,653 | 28,844 |
| Closing balance | 709,012 | 644,964 | 709,012 | 644,964 | 657,156 |
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | OCT 2022 - | FULL-YEAR | ||
|---|---|---|---|---|---|---|
| Note | 2023 | 2022 1) |
2023 | 20221) | SEP 2023 | 2022 1) |
| Profit before tax | 27,858 | 9,659 | 66,270 | 14,126 | 84,519 | 32,375 |
| Adjusted for non-cash items2) | 82,114 | 74,156 | 212,935 | 215,707 | 293,331 | 296,103 |
| Taxes paid | -3,385 | -1,267 | -9,752 | -9,463 | -14,105 | -13,816 |
| Cash flow from operating activities before changes in working capital |
106,587 | 82,548 | 269,453 | 220,370 | 363,745 | 314,662 |
| Cash flow from changes in operating receivables | 19,121 | -2,464 | 52,319 | 2,017 | -15,734 | -66,036 |
| Cash flow from changes in operating liabilities | -1,330 | -68,792 | 18,387 | -17,856 | 114,274 | 78,031 |
| Cash flow from operating activities | 124,378 | 11,292 | 340,159 | 204,531 | 462,285 | 326,657 |
| Investments in capitalized development costs Acquisition of tangible fixed assets Cash flow from investing activities |
-34,792 -8,881 -43,673 |
-40,236 -4,171 -44,407 |
-128,871 -15,878 -144,749 |
-138,636 -9,951 -148,587 |
-178,221 -19,322 -197,543 |
-187,986 -13,395 -201,381 |
| Repayment of lease liabilities | -17,169 | -14,875 | -50,687 | -30,661 | -77,250 | -57,224 |
| Change in overdraft facility | - | - | - | -21,268 | - | -21,268 |
| Cash flow from financing activities | -17,169 | -14,875 | -50,687 | -51,929 | -77,250 | -78,492 |
| Cash flow for the period | 63,536 | -47,990 | 144,723 | 4,015 | 187,492 | 46,784 |
| Cash and cash equivalents at the beginning of the period | 246,228 | 162,068 | 160,268 | 102,535 | 118,194 | 102,535 |
| Exchange-rate difference in cash and cash equivalents | -3,132 | 4,116 | 1,641 | 11,644 | 946 | 10,949 |
| Cash and cash equivalents at the end of the period | 306,632 | 118,194 | 306,632 | 118,194 | 306,632 | 160,268 |
1) The comparative figures for 2022 have been corrected, which are presented in note 1.
2) These amounts mainly include amortization of capitalized development costs, right-of-use assets and unrealized currency effects.
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | FULL-YEAR | ||
|---|---|---|---|---|---|
| Note | 2023 | 2022 | 2023 | 2022 | 2022 |
| Net sales 2,3 |
195,492 | 145,713 | 554,037 | 427,594 | 620,315 |
| Cost of goods sold1 | -20,699 | -9,155 | -33,838 | -18,590 | -28,688 |
| Gross profit | 174,793 | 136,558 | 520,199 | 409,004 | 591,627 |
| Other operating income | 4,855 | 16,992 | 14,625 | 39,931 | 47,917 |
| Selling expenses | -47,655 | -39,675 | -145,306 | -119,217 | -169,489 |
| Administrative expenses | -55,529 | -50,433 | -181,867 | -158,856 | -217,833 |
| Research and development costs | -41,821 | -43,994 | -145,957 | -152,935 | -203,678 |
| Other operating expenses | -4,100 | -3,828 | -14,759 | -16,857 | -34,882 |
| Operating profit | 30,543 | 15,620 | 46,935 | 1,070 | 13,662 |
| Profit/loss from financial items | 1,427 | 4 | 2,542 | -1,069 | -1,265 |
| Profit after financial items | 31,970 | 15,624 | 49,477 | 1 | 12,397 |
| Appropriations | - | - | - | - | - |
| Profit before tax | 31,970 | 15,624 | 49,477 | 1 | 12,397 |
| Tax on profit/loss for the period | -6,987 | -1,584 | -12,217 | -1,190 | -3,775 |
| Profit/loss for the period | 24,983 | 14,040 | 37,260 | -1,189 | 8,622 |
1Comprises costs for hardware and royalties.
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | FULL-YEAR | ||
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022 | |
| Profit/loss for the period | 24,983 | 14,040 | 37,260 | -1,189 | 8,622 |
| Other comprehensive income | - | - | - | - | - |
| Comprehensive income for the period | 24,983 | 14,040 | 37,260 | -1,189 | 8,622 |
| AMOUNTS IN SEK 000s Note |
Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Intangible fixed assets | 168 | 401 | 342 |
| Tangible fixed assets | 47,400 | 60,418 | 56,525 |
| Shares and participations | 3,958 | 3,958 | 3,958 |
| Deferred tax assets | 11,131 | 26,785 | 23,992 |
| Other long-term receivables | 6,377 | 12,328 | 8,510 |
| Total fixed assets | 69,034 | 103,890 | 93,327 |
| Inventories | 2,835 | 4,039 | 3,758 |
| Billed customer receivables | 114,213 | 57,996 | 121,956 |
| Unbilled customer receivables | 72,430 | 67,438 | 47,504 |
| Receivables Group companies | 139,165 | 152,326 | 148,959 |
| Other current receivables | 61,589 | 45,486 | 67,367 |
| Cash and bank balances | 164,720 | 48,256 | 79,903 |
| Total current assets | 554,952 | 375,541 | 469,447 |
| TOTAL ASSETS | 623,986 | 479,431 | 562,774 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Restricted equity | |||
| Share capital | 17,141 | 17,141 | 17,141 |
| Statutory reserve | 43,630 | 43,630 | 43,630 |
| Total restricted equity | 60,771 | 60,771 | 60,771 |
| Unrestricted equity | |||
| Retained earnings | 126,859 | 118,234 | 118,237 |
| Profit/loss for the year | 37,260 | -1,189 | 8,622 |
| Total non-restricted equity | 164,119 | 117,045 | 126,859 |
| Total equity | 224,890 | 177,816 | 187,630 |
| Long-term liabilities | 20,884 | 23,511 | 22,824 |
| Total long-term liabilities | 20,884 | 23,511 | 22,824 |
| Accounts payable | 44,819 | 13,971 | 18,957 |
| Liabilities Group companies | 15,847 | 9,313 | 18,989 |
| Other current liabilities | 317,546 | 254,820 | 314,374 |
| Total current liabilities | 378,212 | 278,104 | 352,320 |
| TOTAL EQUITY AND LIABILITIES | 623,986 | 479,431 | 562,774 |
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The accounting policies applied are consistent with those described in the 2022 Annual Report for RaySearch Laboratories AB (publ), which is available at raysearchlabs.com. RaySearch Laboratories AB (publ) is the Parent Company of the RaySearch Group.
The Parent Company applies the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. The Parent Company's operations are consistent with the Group's operations in all material respects. Differences in profitability between the Parent Company and the Group are attributable to the Parent Company accounting for a relatively high proportion of operating expenses, and to the capitalization of development costs being recognized in the Group but not in the Parent Company. The Parent Company's current receivables mainly comprise receivables from Group companies and external customers.
In this report, it has been noted that the cash flow in the comparative periods is incorrect. The error consists of incorrect classification and calculation regarding cash flow attributable to the group's leasing agreements and has been adjusted in this report. The correction only affects the classification of cash flows between the different categories and does not affect the total cash flow for the period. Restatement have also been made in the group quarterly overview. The income statement and consolidated statement of financial position have not been adjusted. Corrections in cash flow are presented in the tables below.
| AMOUNTS IN SEK 000s | Recognized JUL-SEP |
Restatement | Restated JUL-SEP |
|---|---|---|---|
| 2022 | 2022 | 2022 | |
| Cash flow from changes in operating receivables | -5,839 | 3,375 | -2,464 |
| Cash flow from changes in operating liabilities | -68,096 | -696 | -68,792 |
| Cash flow from operating activities | 8,613 | 2,679 | 11,292 |
| Acquisition of tangible fixed assets | -11,973 | 7,802 | -4,171 |
| Cash flow from investing activities | -52,209 | 7,802 | -44,407 |
| Repayment of lease liabilities | -4,394 | -10,481 | -14,875 |
| Cash flow from financing activities | -4,394 | -10,481 | -14,875 |
| AMOUNTS IN SEK 000s | Recognized | Restatement | Restated |
| JAN-SEP | JAN-SEP | ||
| 2022 | 2022 | 2022 | |
| Cash flow from changes in operating receivables | -1,358 | 3,375 | 2,017 |
| Cash flow from changes in operating liabilities | -4,834 | -13,022 | -17,856 |
| Cash flow from operating activities | 214,178 | -9,647 | 204,531 |
| Acquisition of tangible fixed assets | -41,717 | 31,766 | -9,951 |
| Cash flow from investing activities | -180,535 | 31,766 | -148,587 |
| Repayment of lease liabilities | -8,542 | -22,119 | -30,661 |
| Cash flow from financing activities | -29,810 | -22,119 | -51,929 |
| AMOUNTS IN SEK 000s | Recognized FULL-YEAR |
Restatement | Restated FULL-YEAR |
|---|---|---|---|
| 2022 | 2022 | 2022 | |
| Cash flow from changes in operating liabilities | 108,151 | -30,120 | 78,031 |
| Cash flow from operating activities | 356,777 | -30,120 | 326,657 |
| Acquisition of tangible fixed assets | -43,515 | 30,120 | -13,395 |
| Cash flow from investing activities | -231,501 | 30,120 | -201,381 |
RaySearch conducts sales of goods and services in various regions. Revenue from sales of licenses and hardware is recognized in profit or loss at a point in time, while revenue from sales of training and support is recognized over time.
| AMOUNTS IN SEK 000s JUL-SEP |
|||||
|---|---|---|---|---|---|
| 2023 | 2022 | Change | OCT 2022- SEP 2023 |
Full-year 2022 |
|
| Revenue by type | |||||
| Licenses | 97,881 | 76,442 | 28.0% | 434,775 | 388,456 |
| Support (incl. warranty support) | 107,243 | 87,390 | 22.7% | 381,712 | 323,104 |
| Hardware | 40,669 | 33,906 | 19.9% | 137,463 | 105,760 |
| Training and other | 7,090 | 13,143 | -46.1% | 32,952 | 26,328 |
| Total revenue by type | 252,883 | 210,881 | 19.9% | 986,902 | 843,648 |
| Revenue by geographic market | |||||
| North America | 110,749 | 116,553 | -5.0% | 430,769 | 397,919 |
| Asia, Pacific region and Middle East | 44,940 | 43,553 | 3.2% | 194,952 | 183,420 |
| Europe and rest of world | 97,194 | 50,775 | 91.4% | 631,181 | 262,309 |
| Total revenue by geographic market | 252,883 | 210,881 | 19.9% | 986,902 | 843,648 |
| Revenue recognized at various points in time | |||||
| Goods/services transferred at a point in time | 138,550 | 110,348 | 25.6% | 572,238 | 494,216 |
| Services transferred over time | 114,333 | 100,533 | 13.7% | 414,664 | 349,432 |
| Total revenue recognized at various points in time | 252,883 | 210,881 | 19.9% | 986,902 | 843,648 |
| AMOUNTS IN SEK 000s | JAN-SEP | ||||
|---|---|---|---|---|---|
| 2023 | 2022 | Change | OCT 2022- SEP 2023 |
Full-year 2022 |
|
| Revenue by type | |||||
| Licenses | 302,915 | 256,596 | 18.1% | 434,775 | 388,456 |
| Support (incl. warranty support) | 295,767 | 237,159 | 24.7% | 381,712 | 323,104 |
| Hardware | 96,960 | 65,257 | 48.6% | 137,463 | 105,760 |
| Training and other | 26,877 | 20,253 | 32.7% | 32,952 | 26,328 |
| Total revenue from contracts with customers | 722,519 | 579,265 | 24.7% | 986,902 | 843,648 |
| Revenue by geographic market | |||||
| North America | 302,268 | 269,418 | 12.2% | 430,769 | 397,919 |
| Asia, Pacific region and Middle East | 140,611 | 129,079 | 8.9% | 194,952 | 183,420 |
| Europe and rest of world | 279,640 | 180,768 | 54.7% | 361,181 | 262,309 |
| Total revenue by geographic market | 722,519 | 579,265 | 24.7% | 986,902 | 843,648 |
| Revenue recognized at various points in time | |||||
| Goods/services transferred at a point in time | 399,875 | 321,853 | 24.2% | 572,238 | 494,216 |
| Services transferred over time | 322,644 | 257,412 | 25.3% | 414,664 | 349,432 |
| Total revenue recognized at various points in time | 722,519 | 579,265 | 24.7% | 986,902 | 843,648 |
Preparation of the interim report requires that company management make estimates that affect the carrying amounts. The actual outcome could deviate from these estimates. The critical sources of uncertainty in the estimates are the same as those in the most recent Annual Report.
RaySearch's financial assets and liabilities comprise billed and unbilled receivables, cash and cash equivalents, accrued expenses, accounts payable, bank loans and lease liabilities. Long-term receivables and lease liabilities are discounted, while other financial assets and liabilities have short maturities. Accordingly, the fair values of all financial instruments are deemed to correspond approximately to their carrying amounts.
The provision for expected credit losses is a weighted assessment of payment history, reports from external credit rating agencies and other customer-specific information. At the end of September 2023, the credit loss provision amounted to SEK 49.9 M (43.5), corresponding to 14 percent (12) of total customer receivables.
There were no transactions between RaySearch and related parties with any material impact on the company's position and earnings during the period.
| AMOUNTS IN SEK 000s | SEP 30, 2023 | SEP 30, 2022 | DEC 31, 2022 |
|---|---|---|---|
| Chattel mortgages | 100,000 | 100,000 | 100,000 |
| Guarantees | 32,194 | 33,121 | 33,007 |
| 2023 | 2022 | |||||||
|---|---|---|---|---|---|---|---|---|
| AMOUNTS IN SEK 000s | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 |
| Order intake | ||||||||
| Total order intake | 240,693 | 239,163 | 206,631 | 514,424 | 219,091 | 212,511 | 272,442 | 345,028 |
| Income statement | ||||||||
| Net sales | 252,883 | 239,467 | 230,169 | 264,383 | 210,811 | 160,235 | 208,149 | 188,573 |
| Change in sales, % | 19.9 | 49.4 | 10.6 | 40.2 | 54.6 | 3.7 | 28.4 | 18.5 |
| Operating profit/loss | 28,616 | 18,226 | 23,676 | 20,700 | 12,007 | -19,527 | 29,564 | -16,578 |
| Operating margin, % | 11.3 | 7.6 | 10.3 | 7.8 | 5.7 | -12.2 | 14.2 | -8.8 |
| Profit/loss for the period | 21,551 | 10,918 | 17,563 | 14,138 | 10,073 | -19,731 | 19,298 | -15,968 |
| Net margin, % | 8.5 | 4.6 | 7.6 | 5.3 | 4.8 | -12.3 | 9.3 | -8.5 |
| Cash flow | ||||||||
| Operating activities | 124,378 | 62,097 | 153,683 | 122,126 | 11,292 | 63,824 | 126,827 | 28,397 |
| Investing activities | -43,673 | -48,995 | -52,081 | -52,794 | -44,407 | -43,629 | -60,551 | -60,944 |
| Financing activities | 17,169 | -16,388 | -17,130 | -26,563 | -14,875 | -8,010 | -29,916 | 12,482 |
| Cash flow for the period | 63,536 | -3,285 | 84,472 | 42,769 | -47,990 | 16,685 | 35,320 | -20,065 |
| Capital structure | ||||||||
| Equity/assets ratio, % | 38.0 | 36.3 | 35.8 | 35.0 | 37.6 | 35.2 | 37.5 | 36.0 |
| Net debt | 199,642 | 279,406 | 295,381 | 394,982 | 413,394 | 385,357 | 396,166 | 458,863 |
| Debt/equity ratio | 0.3 | 0.4 | 0.4 | 0.6 | 0.6 | 0.6 | 0.6 | 0.7 |
| Net debt/EBITDA | 0.5 | 0.8 | 0.9 | 1.2 | 1.4 | 1.6 | 1.8 | 2.3 |
| Per share data, SEK | ||||||||
| Earnings/loss per share before | 0.63 | 0.32 | 0.51 | 0.41 | 0.29 | -0.58 | 0.56 | -0.47 |
| dilution | ||||||||
| Earnings/loss per share after dilution | 0.63 | 0.32 | 0.51 | 0.41 | 0.29 | -0.58 | 0.56 | -0.47 |
| Equity per share | 20.68 | 20.07 | 19.67 | 19.17 | 18.81 | 18.42 | 18.91 | 18.33 |
| Share price at the end of the period | 82.9 | 63.30 | 77.10 | 68.00 | 47.60 | 54.40 | 51.70 | 56.50 |
| Other | ||||||||
| No. of shares before/after dilution, 000s |
34,282.8 | 34,282.8 | 34,282.8 | 34,282.8 | 34,282.8 | 34,282.8 | 34,282.8 | 34,282.8 |
| Average no. of employees | 383 | 371 | 374 | 382 | 386 | 383 | 399 | 419 |
| Oct 2022- | Jul 2022- | Apr 2022- | Jan 2022- | Oct 2021- | Jul 2021- | Apr 2021- | Jan 2021- | |
|---|---|---|---|---|---|---|---|---|
| AMOUNTS IN SEK 000s | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Sep 2022 | Jun 2022 | Mar 2022 | Dec 2021 |
| Order intake | ||||||||
| Total order intake | 1,200,911 | 1,179,309 | 1,152,657 | 1,218,468 | 1,049,070 | 957,845 | 935,073 | 807,762 |
| Income statement | ||||||||
| Net sales | 986,902 | 944,900 | 865,668 | 843,648 | 767,838 | 693,376 | 687,720 | 641,673 |
| Operating profit/loss | 91,218 | 74,609 | 36,856 | 42,744 | 5,466 | -33,102 | -36,038 | -53,341 |
| Operating margin, % | 9.2 | 7.9 | 4.3 | 5.1 | 0.7 | -4.8 | -5.2 | -8.3 |
| Cash flow | ||||||||
| Cash flow | 187,492 | 75,966 | 95,936 | 46,784 | -16,050 | 21,852 | -69,223 | -72,380 |
| Cash flow adjusted for repayment of bank loans |
187,492 | 75,966 | 95,936 | 68,052 | 5,218 | 43,120 | -47,955 | -22,380 |
The interim report refers to a number of non-IFRS financial measures that are used to provide investors and company management with additional information to assess the company's operations. The various non-IFRS measures used to complement the IFRS financial statements are described below.
| Non-IFRS measures | Definition | Reason for using the measure |
|---|---|---|
| Order intake | The value (transaction price) of all orders received and | Order intake is an indicator of future revenue and thus a key |
| changes to existing orders during the current period. | figure for the management of RaySearch's operations. | |
| Order backlog | The value of orders at the end of the period that the | The order backlog shows the value of orders already booked |
| company has yet to deliver and recognize as revenue, | by RaySearch that will be converted to revenue in the | |
| meaning remaining performance obligations. | future. | |
| Change in sales | The change in net sales compared with the year-earlier | The measure is used to track the performance of the |
| period expressed as a percentage. | company's operations between periods. | |
| Change in sales at | Change in sales at unchanged exchange rates, i.e. excluding | This measure is used to monitor underlying change in sales |
| unchanged currencies | currency effects. | driven by alterations in volume, pricing and mix for |
| (organic growth) | comparable units between different periods. | |
| Gross profit | Net sales minus cost of goods sold. | Gross profit is used to measure the margin before sales, |
| research, development and administrative expenses | ||
| Operating profit/loss | Calculated as profit for the period before financial items and | Operating profit/loss provides an overall picture of the total |
| tax. | generation of earnings in operating activities. | |
| Operating profit adjusted for currency translation |
Calculated as operating profit less other operating income/expenses. |
Operating profit provides an overall picture of the total generation of earnings in operating activities excluding |
| effects | currency translation effects for balance sheet items. | |
| Operating margin | Operating profit expressed as a percentage of net sales. | Together with sales growth, the operating margin is a key |
| element for monitoring value creation. | ||
| Net margin | Profit for the period as a percentage of net sales for the | The net margin shows the percentage of net sales remaining |
| period. | after the company's expenses have been deducted. | |
| Operating expenses | Pertains to selling expenses, administrative expenses and | Operating expenses provide an overall picture of the costs |
| research and development costs included in operating | charged to operating activities and is an important internal | |
| activities. Previous reports also included cost of goods sold, | measure on which management has significant influence. | |
| other operating income and other operating expenses. | ||
| Equity per share | Equity divided by number of shares at the end of the period. | The measurement shows the return generated on the |
| owners' invested capital per share. | ||
| Rolling 12 months' sales, | Sales, operating profit or other results measured over the | This measure is used to more clearly illustrate the trends for |
| operating profit or other | past 12-month period. | sales, operating profit and other results, which is relevant |
| results | because RaySearch's revenue is subject to monthly | |
| variations. | ||
| Working capital | Working capital comprises inventories, operating receivables | This measure shows how much working capital is tied up in |
| and operating liabilities, and is obtained from the statement | operations and can be shown in relation to net sales to | |
| of financial position. Operating receivables comprise | demonstrate the efficiency with which working capital has | |
| accounts receivable, other current/long-term receivables | been used. | |
| and non-interest bearing prepaid expenses and accrued income. Operating liabilities include other non-interest |
||
| bearing long-term liabilities, advance payments from | ||
| customers, accounts payable, other current liabilities and | ||
| non-interest bearing accrued expenses and deferred | ||
| income. | ||
| Return on equity | Calculated as profit/loss for the period as a percentage of | Shows the return generated on the owners' invested capital |
| average equity. Average equity is calculated as the sum of | from a shareholder perspective. | |
| equity at the end of the period plus equity at the end of the | ||
| year-earlier period, divided by two. | ||
| Equity/assets ratio | Equity expressed as a percentage of total assets at the end | This is a standard measure to show financial risk and is |
| of the period. | expressed as the percentage of the total restricted equity | |
| financed by the owners. | ||
| Net debt | Interest-bearing liabilities less cash and cash equivalents | This measure shows the Group's total indebtedness |
| and interest-bearing current and long-term receivables | ||
| Debt/equity ratio | Net debt in relation to equity. | The measure shows financial risk and is used by |
| management to monitor the Group's indebtedness. | ||
| EBITDA | Operating profit before financial items, tax, | The measurement is a way to evaluate the result without |
| depreciation/amortization and impairment. | taking into consideration financial decisions or taxes. | |
| Net debt/EBITDA | Net debt at the end of the period in relation to operating | A relevant measure from a credit perspective that shows the |
| profit before depreciation and amortization over the past 12-month period. |
company's ability to handle its debt. |
| AMOUNTS IN SEK 000s | Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2022 | |||
|---|---|---|---|---|---|---|
| Operating profit adjusted for currency translation effects | ||||||
| Operating profit | 70,518 | 22,044 | 42,744 | |||
| Exchange-rate gains | -13,353 | -38,782 | -33,053 | |||
| Exchange-rate losses | 17,243 | 16,748 | 20,616 | |||
| Operating profit adjusted for currency translation effects | 74,408 | 10 | 30,307 | |||
| AMOUNTS IN SEK 000s | Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2022 | |||
| Working capital | ||||||
| Accounts receivable (current billed customer receivables) | 190,626 | 143,264 | 246,742 | |||
| Current unbilled customer receivables | 110,342 | 160,706 | 123,827 | |||
| Long-term unbilled customer receivables | 17,058 | 6,829 | 54,697 | |||
| Inventories | 19,823 | 29,443 | 14,091 | |||
| Other current receivables (excl. tax) | 85,619 | 82,313 | 71,712 | |||
| Accounts payable | -51,379 | -25,629 | -24,030 | |||
| Other current liabilities (excl. tax) | -485,338 | -412,195 | -526,781 | |||
| Working capital | -113,249 | -15,269 | -39,742 | |||
| PERCENT | Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2022 | |||
| Return on equity | ||||||
| Profit for the period | 50,032 | 9,640 | 23,778 | |||
| Average equity | 683,084 | 636,638 | 642,734 | |||
| Return on average equity, percent | 7.3 | 1.5 | 3.7 | |||
| PERCENT | 2023-09-30 | 2022-09-30 | 2022-12-31 | |||
| Equity/assets ratio | ||||||
| Equity at the end of the period | 709,012 | 644,964 | 657,156 | |||
| Total assets | 1,866,604 | 1,724,030 | 1 875,950 | |||
| Equity/assets ratio, percent | 38.0 | 37.4 | 35.0 | |||
| AMOUNTS IN SEK 000s | Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2022 | |||
| Net debt | ||||||
| Current interest-bearing liabilities | 56,924 | 53,940 | 58,307 | |||
| Long-term interest-bearing liabilities | 449,351 | 477,648 | 496,943 | |||
| Cash and cash equivalents | -306,632 | -118,194 | -160,268 | |||
| Net debt | 199,642 | 413,394 | 394,982 | |||
| Debt/equity ratio | Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2022 | |||
| 413,394 | 394,982 | |||||
| Net debt | 199,642 709,012 |
644,964 | 657,156 | |||
| Equity | 0.28 | 0.64 | 0.60 | |||
| Debt/equity ratio | ||||||
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | FULL-YEAR | |||
| 2023 | 2022 | 2023 2022 |
2022 | |||
| EBITDA | ||||||
| Operating profit | 28,616 | 12,007 | 70,518 | 22,044 | 42,744 | |
| Amortization and depreciation | 73,913 | 77,93 | 209,893 | 219,022 | 296,994 |
EBITDA 102,529 89,937 280,411 241,066 339,738
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | FULL-YEAR | ||
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022 | |
| Change in sales at unchanged currencies (organic growth) | |||||
| Net sales | 252,883 | 210,881 | 722,519 | 579,265 | 843,648 |
| Currency adjustment | -9,234 | -28,973 | -36,657 | -54,837 | -52,793 |
| Adjusted net sales | 243,649 | 181,908 | 685,862 | 524,428 | 790,855 |
| Net sales, preceding year | 210,881 | 136,419 | 579,265 | 453,100 | 641,673 |
| Change in sales at unchanged currencies (organic growth) | 15.5% | 33.3% | 18.4% | 15.7% | 23.2% |
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | FULL-YEAR | |||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022 | ||
| Operating expenses | ||||||
| Selling expenses | -88,670 | -79,352 | -260,076 | -220,460 | -309,424 | |
| Administrative expenses | -42,852 | -41,269 | -143,822 | -124,276 | -171,719 | |
| Research and development costs | -61,351 | -62,515 | -169,106 | -178,689 | -238,769 | |
| Operating expenses | -192,873 | -183,136 | -573,004 | -523,425 | -719,912 |
RaySearch Laboratories AB (publ) Box 45169 SE-104 30 Stockholm, Sweden
Eugeniavägen 18 C SE-113 68 Stockholm, Sweden Tel: +46 (0)8 510 530 00
raysearchlabs.com Corp. Reg. No. 556322-6157
RaySearch Laboratories AB (publ) is a medical technology company that develops innovative software solutions for improved cancer treatment. The company markets the RayStation treatment planning system (TPS) and RayCare oncology information system (OIS). The latest additions to the RaySearch product line are RayIntelligence and RayCommand. RayIntelligence is a cloud-based oncology analytics system that cancer clinics can use to collect, structure and analyze data. The Treatment Control System (TCS) RayCommand is designed as a link between the treatment machine and the dose planning and oncology information systems.
RaySearch's software is currently used by over 900 clinics in more than 40 countries. The company was founded in 2000 as a spin-off from the Karolinska Institute in Stockholm and the share have been listed on Nasdaq Stockholm since 2003. More information about RaySearch is available at raysearchlabs.com.
The company's vision is a world where cancer is conquered and RaySearch's mission is to provide innovative software to continuously improve cancer treatment.
A radiation therapy center essentially needs two software platforms for its operations: a treatment planning system, and an information system. With RayStation and RayCare, RaySearch will strengthen its position and continue to grow with high profitability. The company's strategy is based on a strong focus on innovative software development with leading functionality, support for efficient workflows – including via digitization and automation with machine learning – broad support for a wide range of treatment modes and radiation therapy devices, close collaboration with worldleading cancer centers and industrial partners, and extensive investment in research and development.
RaySearch's main revenue is generated by customers paying an initial license fee for the right to use RaySearch's software and an annually recurring service fee for access to updates and support. All software systems are developed at RaySearch's head office in Stockholm and distributed and supported by the company's global marketing organization.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.