Earnings Release • Feb 15, 2018
Earnings Release
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| AMOUNTS IN SEK 000S | OCT-DEC | JAN-DEC | |||
|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | ||
| Net sales | 204.961 | 191.355 | 585,086 | 531.468 | |
| Operating profit | 98,698 | 100,249 | 159,669 | 199,559 | |
| Operating margin, % | 48.2 | 52.4 | 27.3 | 37.5 | |
| Profit for the period | 72,289 | 75,924 | 117,627 | 151.408 | |
| Earnings per share before/after dilution, SEK | 2.11 | 2.21 | 3.43 | 4.42 | |
| Cash flow from operating activities | 46.785 | 73,866 | 147,481 | 120,848 | |
| Cash flow before financing activities | 578 | 42.659 | $-651$ | 13.899 | |
| Return on equity, % | 13.9 | 19.5 | 22.6 | 38.8 | |
| Equity/assets ratio at the end of the period, % | 63.4 | 64.2 | 63.4 | 64.2 | |
| Share price at the end of the period, SEK | 171.00 | 184.50 | 171.00 | 184.50 |
In December, we released as planned the first version of RayCare, the next-generation oncology information system (OIS), which we have developed over the past five years. We then immediately secured the first order for the system from Anderson Regional Cancer Center in the US, which reflects the substantial
need and demand for the system. RayCare will constitute a new product area for RaySearch and
the launch is an important milestone, both for RaySearch and hospital oncology units. RayCare differs fundamentally from other OIS and we have invested a great deal of time and energy into creating something that can fundamentally improve
"The launch of RayCare is an important milestone, both for RaySearch and for hospital oncology units"
cancer treatment. Our goal is to further develop cancer treatment with powerful tools that combine treatment planning workflows and data management, resource optimization, machine learning and efficient follow-up.
Ever since RayStation was first launched, we have focused on and achieved major sales success in several of the world's most advanced and renowned radiation therapy clinics. In 2017, revenues from RayStation increased by 10 percent, which is a lower rate of growth than we have previously noted. This is largely due to the fact that we are operating in markets with uneven order flows where several major procurements have been delayed. However, we continue to see increased global demand for our innovative software and we feel secure in our long-term strategy.
In 2017, we have continued to expand our global marketing organization by adding more employees and more subsidiaries to more systematically address the entire market, accelerate sales of both RayStation and RayCare, and ensure the best possible customer service. This initiative will continue, which may reduce the company's operating margin in the short term, but will lead to high growth with healthy margins in the future.
RayStation is already well established in all major global markets as the most advanced treatment planning system for radiation therapy. One of RayStation's strengths is that the system can support more types of radiation therapy devices than any other treatment planning system, and RayStation is, for example, the only treatment planning system that can create plans for both Accuray's TomoTherapyTM treatment system and conventional linear accelerators.
RayStation helps to improve radiation therapy and extend the lifetime of
"We feel secure in our long-term strategy. We are making large investments in our research and development organization and we are driving the operations forward at full force"
therapy devices, which means they can be used more efficiently. Clinics that want to improve and develop their treatment are no longer dependent on buying the latest hardware - they can achieve similar, positive outcomes by choosing RayStation as their treatment planning system.
Particle therapy (protons/carbon ions/BNCT) is a key area of focus for RaySearch. The 17 new orders we received during the year brought our total number of particle therapy clinics to 44, representing a market share of over 50 percent. Today, less than 1 percent of all radiation therapy patients receive proton therapy, but 20 percent* could receive better treatment through proton therapy. This means that there is great potential in this area.
In 2017, net sales rose 10 percent to SEK 585 M (531). Operating profit totaled SEK 160 M (200), representing an operating margin of 27 percent [38]. The lower operating margin was attributable to lower growth for RayStation, the USD weakening against the SEK and higher costs due to investments in our global marketing organization and in research and development. Exchange-rate changes, primarily a weaker USD, had a negative impact of SEK 18 M on earnings in 2017.
*Source: MEDRays Intell Proton Therapy World Market Report 2015
RaySearch's business concept is to improve cancer treatment through innovative software. Improving care outcomes and quality of life for cancer patients worldwide is the underlying driver of everything we create, and all decisions we make. RayCare brings integrated cancer treatment within reach of many cancer clinics, and will create clinical opportunities that existing systems simply cannot do. The response from the clinical community to date has been overwhelmingly positive, and shows how badlu this sustem is needed.
To ensure that we meet clinical needs, our development activities are conducted in close collaboration with leading cancer clinics, such as the University of California San Francisco, MD Anderson, the University of Wisconsin-Madison and Provision Healthcare in the US, the University Medical Center Groningen in the Netherlands and Iridium Kankernetwerk in Belgium. Solving the coordination, safety and efficiency needs of the world's largest cancer care clinics is one of our most exciting challenges to date. Our development model is based on partnerships with leading clinics and provides ideal conditions for success by combining their extensive clinical knowledge and resources with RaySearch's ability to develop innovative software solutions.
To accelerate the pace of RayCare's development, we expanded our development department in 2017 and decided to set up development offices in two strategic cities: San Francisco and Toronto. Both these regions are home to many of our business partners and offer good access to talented people, which will increase our ability to recruit personnel with the right knowledge.
Our sales and earnings will continue to vary by quarter, since the order intake remains subject to relatively large fluctuations. However, we are seeing continued sales growth and a steady rise in our recurring support revenues from RayStation. Combined with a clear strategic plan, this provides a stable base for continued investment in both RauStation and RauCare.
To date, 470 cancer clinics in 30 countries have purchased RayStation. At the same time, there are more than 8,000 radiation therapu clinics worldwide, and that number is expected to grow sharply over the next decade. The driving forces include rising cancer rates, growing awareness of the advantages of radiation therapy and major investment in cancer therapies in Asia. The market is therefore growing steadily and we will continue to grow considerably faster than the market. Our aim is that at least 3,000 clinics will have purchased RayStation within ten years, representing a market share of about 30 percent.
Software is driving many of the advances in cancer treatment today. RaySearch is uniquely positioned to contribute to this trend and we have excellent prospects for succeeding with our joint mission - to continue the advancement of cancer treatment by developing innovative software solutions that save lives and improve quality of life for cancer patients.
Stockholm, February 15, 2018
Johan Löf President and CEO of RaySearch Laboratories AB (publ)
In the fourth quarter of 2017, order intake excluding service agreements rose 1.9 percent to SEK 192.6 M [189.0], of which order intake for RayStation/RayCare excluding service agreements rose 3.9 percent and amounted to SEK 183.2 M [176.3].
| Full- | Full- | ||||||
|---|---|---|---|---|---|---|---|
| Order intake (amounts in SEK M) | 04-17 | 03-17 | 02-17 | 01-17 | 04-16 | year 2017 |
year 2016 |
| Order intake excl. service agreements - | |||||||
| RayStation/RayCare | 183.2 | 92.8 | 98.0 | 93.8 | 176.3 | 467.8 | 461.0 |
| Order intake excl. service agreements - Partners | 9.4 | 9.3 | 10.8 | 11.1 | 12.7 | 40.5 | 40.1 |
| Total order intake excl. service agreements | 192.6 | 102.0 | 108.8 | 104.9 | 189.0 | 508.4 | 501.1 |
| Order backlog for RayStation/RayCare, at the end of | |||||||
| the period | 50.0 | 39.1 | 36.0 | 58.1 | 67.6 | 50.0 | 67.6 |
For the full-year 2017, order intake excluding service agreements increased 1.5 percent to SEK 508.4 M (501.1), of which order intake for RayStation/RayCare amounted to SEK 467.8 M (461.0). At December 31, 2017, the order backlog for RayStation/RayCare was SEK 50.0 M [67.6].
In the fourth quarter of 2017, net sales rose 7.1 percent to SEK 204.9 M [191.4]. Net sales consist of license revenues from sales of the RayStation treatment planning system, the oncology information system RayCare, sales of software modules via partners, and support revenues. The growth in net sales was largely attributable to increased revenues from RayStation/RayCare, which rose 10.2 percent to SEK 192.6 M [174.8].
In the fourth quarter, net sales had the following geographic distribution: North America 52 percent (50), Asia 16 percent [24], Europe and the rest of the world 32 percent [26].
| Full-year | Full-year | ||||||
|---|---|---|---|---|---|---|---|
| Revenues (amounts in SEK M) | 04-17 | 03-17 | 02-17 | 01-17 | 04-16 | 2017 | 2016 |
| License revenues - RayStation/RayCare | 162.1 | 81.9 | 106.9 | 87.7 | 160.8 | 438.5 | 437.1 |
| Hardware revenues - RayStation/RayCare | 11.2 | 3.9 | 9.0 | 12.1 | 3.5 | 36.2 | 6.3 |
| License revenues - Partners | 9.4 | 9.3 | 10.8 | 11.1 | 12.7 | 40.5 | 40.1 |
| Support revenues - RayStation | 18.9 | 13.1 | 11.1 | 11.5 | 9.5 | 54.6 | 31.1 |
| Support revenues - Partners | 2.9 | 3.3 | 3.2 | 3.4 | 3.9 | 12.8 | 15.4 |
| Training and other revenues - RayStation | 0.5 | 0.3 | 0.6 | 1.0 | 1.0 | 2.3 | 1.5 |
| Net sales | 205.0 | 111.7 | 141.6 | 126.8 | 191.4 | 585.1 | 531.5 |
| Sales growth, corresp. period, % | 7.1% | $-11.2%$ | 19.0% | 32.9% | 45.0% | 10.1% | 33.7% |
| Organic sales growth, corresp. period, % | 12.2% | $-7.8%$ | 13.8% | 28.1% | 39.2% | 10.4% | 31.6% |
For the full-year 2017, net sales rose 10.1 percent to SEK 585.1 M (531.5), of which revenues from RayStation/RayCare increased 11.7 percent and amounted to SEK 531.7 M [476.0].
For the full-year 2017, net sales had the following geographic distribution: North America 45 percent (42), Asia 17 percent [15], Europe and the rest of the world 38 percent [43].
Recurring support revenues from RayStation rose 76 percent to SEK 54.6 M (31.1), representing 10.3 percent (6.5) of total revenues from RayStation in 2017.
Revenues from sales of software modules via partners declined 3.8 percent to SEK 53.4 M (55.5), representing 9.1 percent (10.4) of net sales.
In the fourth quarter of 2017, operating profit declined to SEK 98.7 M [100.2], representing an operating margin of 48.2 percent (52.4). The weaker earnings were primarily attributable to increased operating expenses, given that the company in 2017 increased the number of employees by approximately 35 percent, mainly within the global marketing organization and in research and development, which has not yet generated higher order intake.
Other operating income and expenses refers to exchange-rate gains and losses, with the net of these amounting to SEK 7.0 M [7.9] in the fourth quarter of 2017. This was mainly due to the major portion of accounts receivable denominated in USD, which strengthened against the SEK in the fourth quarter compared with the end of the third quarter.
For the full-year 2017, operating profit decreased to SEK 159.7 M (199.6), representing an operating margin of 27.3 percent [37.5].
The company is impacted by exchange-rate trends in the USD and EUR against the SEK, since invoicing is mainly denominated in USD and EUR, while most costs are in SEK. At unchanged exchange rates, organic sales growth was 12.2 percent in the fourth quarter and 10.4 percent for the full-year 2017, compared with the year-earlier period. Currency effects thus had a negative impact on sales in the fourth quarter and a slightly negative impact on sales for the full-year 2017.
A sensitivity analysis of the company's currency exposure shows that a 1-percentage point change in the USD exchange rate against the SEK would have impacted consolidated operating profit by approximately +/- SEK 5.2 M in the full-year of 2017, while a corresponding change in the EUR exchange rate would have impacted consolidated operating profit by approximately +/- SEK 2.0 M.
The company follows the financial policy established by the Board of Directors, whereby exchange-rate changes are not hedged. Exchange-rate changes, primarily a weaker USD, had a negative impact of SEK 3 M on operating profit for the fourth quarter and a negative impact of SEK 18 M for the full-year 2017.
At December 31, 2017, some 142 [111] employees were engaged in research and development.
For the full-year 2017, research and development expenditure amounted to SEK 183.7 M (141.3), of which development expenditure of SEK 137.8 M [104.4] was capitalized. The increase mainly pertained to RayCare, which was launched in December 2017. Amortization of capitalized development expenditure amounted to SEK 58.4 M [56.3] in 2017. After adjustments for capitalization and amortization of development expenditure, research and development expenditure totaled SEK 104.3 M (93.3).
| Full- | |||||||
|---|---|---|---|---|---|---|---|
| year | Full-year | ||||||
| Capitalization of development expenditure | $04-17$ | 03-17 | 02-17 | 01-17 | 04-16 | 2017 | 2016 |
| Research and development expenditure | 59.7 | 41.7 | 42.7 | 39.6 | 42.3 | 183.7 | 141.3 |
| Capitalization of development expenditure | $-46.2$ | $-30.7$ | $-31.1$ | $-29.8$ | $-31.0$ | $-137.8$ | $-104.4$ |
| Amortization of capitalized development | |||||||
| expenditure | 13.7 | 14.8 | 15.2 | 14.7 | 13.7 | 58.4 | 56.3 |
| Research and development expenditure after | |||||||
| adjustments for capitalization and | |||||||
| amortization of | |||||||
| development expenditure | 27.2 | 25.8 | 26.8 | 24.5 | 25.0 | 104.3 | 93.3 |
In the fourth quarter of 2017, total amortization and depreciation was SEK 16.9 M (16.5), of which amortization of intangible fixed assets accounted for SEK 13.7 M [13.7], primarily related to capitalized development expenditure, and depreciation of tangible fixed assets accounted for SEK 3.2 M (2.7).
Total amortization and depreciation in 2017 was SEK 70.8 M (67.3), of which amortization of intangible fixed assets accounted for SEK 58.4 M [56.3], primarily attributable to capitalized development expenditure, and depreciation of tangible fixed assets accounted for SEK 12.4 M [11.0].
In the fourth quarter of 2017, profit after tax totaled SEK 72.3 M (profit: 75.9), representing earnings per share before and after dilution of SEK 2.11 [2.21]. Profit after tax for the full-year 2017 totaled SEK 117.6 M [151.4], representing earnings per share before and after dilution of SEK 3.43 [4.42].
Tax expense for the year amounted to SEK 38.3 M (expense: 46.7), corresponding to an effective tax rate of 24.6 percent (23.6).
In the fourth quarter of 2017, cash flow from operating activities amounted to SEK 46.8 M [73.9], and the reduction is attributable to an increase in working capital. Working capital primarily comprises accounts receivable and accrued income. At the end of the period, accounts receivable represented 57 percent (53) of net sales over the past 12 months and accrued income for 15 percent (9) of net sales over the past 12 months.
For the full-year 2017, cash flow from operating activities was SEK 147.5 M (120.8).
In the fourth quarter, cash flow from investing activities amounted to a negative SEK 46.2 M (neg: 31.2), and a finance lease was used to fund an additional SEK 0.2 M. Investments in intangible fixed assets amounted to a negative SEK 46.1 M (neg: 31.0) and comprised capitalized development expenditure for RayStation and RayCare. Investments in tangible fixed assets amounted to a negative SEK 0.3 M (neg: 1.2).
In full-year 2017, cash flow from investing activities was a negative SEK 148.1 M (neg: 106.9), and a finance lease was used to fund an additional SEK 2.5 M [2.5]. Investments in intangible fixed assets amounted to a negative SEK 137.8 M (neg: 104.4) and comprised capitalized development expenditure. Investments in intangible fixed assets amounted to a negative SEK 12.8 M (neg: 5.0).
Cash flow before financing activities was SEK 0.6 M [42.7] in the fourth quarter, and a negative SEK 0.7 M [pos: 13.9] for the full-year 2017.
In the fourth quarter, cash flow from financing activities was SEK 34.0 M (13.9), due to the company's increased utilization of its revolving credit facility by SEK 35 M. For the full-year 2017, cash flow from financing activities was SEK 19.8 M (12.3).
Cash flow for the period was SEK 34.6 M [56.6] in the fourth quarter, and SEK 19.2 M [26.2] for the full-year 2017. At December 31, 2017, consolidated cash and cash equivalents was SEK 104.2 M [87.7].
RaySearch's total assets amounted to SEK 915 M [717] at December 31, 2017, and the equity/assets ratio was 63.4 percent $[64.2]$
Current receivables amounted to SEK 440 M [348]. The receivables mainly comprised accounts receivable and accrued income, and the increase was primarily the result of longer payment terms and sales growth.
During the fourth quarter, the company entered into a six-year lease for new office premises in San Francisco and a tenyear lease for new office premises in New York.
In May 2017, the company's credit facility was increased from SEK 100 M to SEK 350 M. The credit facility runs until May 2020 and comprises a revolving loan facility of up to SEK 300 M and an overdraft facility of SEK 50 M.
Chattel mortgages amount to SEK 100 M.
At December 31, 2017, a short-term loan totaling SEK 75 M had been utilized within the framework of the company's revolving loan facility. At December 31, 2017, the Group had negative net debt of SEK 20.4 M (neg: 26.2).
The average number of employees in the Group was 253 [192] for the fourth quarter of 2017 and 228 [184] for the January-December period of 2017. At the end of the fourth quarter, the Group had 256 [193] employees, of whom 200 [158] were based in Sweden, and 56 [35] 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. However, the capitalization of development expenditure and items related to finance leases are recognized in the Group, but not in the Parent Company. The Parent Company's current receivables mainly comprise receivables from Group companies and accounts receivable.
In January, it was announced that the latest version of RayStation had been launched, making RayStation the only treatment planning system that can create plans for Accuray's TomoTherapy™treatment system as well as conventional linear accelerators. RayStation 6 also includes other significant new functionality, including a Monte Carlo Pencil Beam Scanning (PBS) model for dose computation, PBS planning with block aperture computation, simultaneous optimization of multiple beamsets, MRI-based planning and automatic reset.
In the second quarter, it was announced that all functionality in RayStation 6 for Pencil Beam Scanning (PBS) proton therapy could now also be used for Mitsubishi Electric's PBS system.
In 2017, several of the world's largest and most respected cancer clinics selected RayStation as their treatment planning system, including, the Johns Hopkins/Sibley Memorial Hospital, the University of Wisconsin-Madison, MedStar Georgetown University Hospital, Kennestone Hospital (part of WellStar Health System), Sharp Grossmont and Sharp Memorial Hospital (part of Sharp HealthCare) in the US, Hôtel-Dieu de Lévis in Canada, Nottingham City Hospital, Charing Cross Hospital and Hammersmith Hospital in the UK, Academic Medical Center (AMC) in the Netherlands, OLVZ Aalst in Belgium, Centre Francois Baclesse in Luxembourg, Salzburger Landeskliniken (SALK) in Austria, Maria Sklodowska-Curie Memorial Cancer Center in Poland, Zhuozhou Proton Therapy Center in China, the University of Tsukuba in Japan and Tata Memorial Centre in India. In addition, the Princess Margaret Cancer Center, MD Anderson Cancer Center and Maryland Proton Treatment Center, in partnership with the University of Maryland, and others have expanded their RayStation installations. RayStation was also chosen for a new carbon ion center at the Yamagata University Hospital in Japan, the first proton therapy center in India, the Apollo Proton Cancer Center in Chennai, and by the Provision CARES proton center in Nashville in the US, which will be the first clinical ProNova proton system in the world.
In February, it was announced that University Health Network (UHN) in Canada had licensed a new artificial intelligence (AI) technology for automated radiation therapy treatment planning (AutoPlanning) with exclusive rights to RaySearch.
In February, RaySearch's CEO and founder, Johan Löf, was named Sweden's most successful entrepreneur in the Swedish final of the 2016 EY Entrepreneur of the Year program.
The jury citation was: "Johan Löf has created a company that brings benefits to both individuals and society. Advanced products, combined with personal and commercial drive, distinguish his business. Continued expansion is on the agenda for this entrepreneur who improves quality of life for millions of people."
In March, it was announced that RaySearch had entered into a long-term collaborative agreement with the University of Texas MD Anderson Cancer Center in Houston, Texas for RayCare, the next-generation oncology information system (OIS) developed by RaySearch. Johan Löf says: "By combining MD Anderson's extensive clinical knowledge and resources with RaySearch's capacity for innovative development, this partnership has all the prerequisites for success."
In May 2017, the company's credit facility was increased from SEK 100 M to SEK 350 M. The credit facility runs until May 2020 and comprises a revolving loan facility of up to SEK 300 M and an overdraft facility of SEK 50 M. Chattel mortgages amount to SEK 100 M.
In June, it was announced that RaySearch had signed a long-term collaborative agreement for RayCare with the University of Wisconsin-Madison. John Bayouth, Chief of Radiation Oncology Physics at the University of Wisconsin Department of Human Oncology, says: "RayCare has been designed to coordinate our various oncological disciplines and we are hoping to develop the full potential of our multifaceted clinical resources."
In 2017, another 17 particle therapy clinics (protons / carbon ions / BNCT) opted for RayStation as their treatment planning sustem, bringing the total number of particle therapy clinics that have chosen RayStation to 44, representing more than half of all global particle centers.
In September, it was announced that RaySearch had signed a long-term collaborative agreement for RayCare with Provision Healthcare in the US. Niek Schreuder, Vice President and Chief Medical Physicist for Provision Healthcare, says: "For Provision, it is of great strategic importance for our Cancer CARE Network to have an integrated and efficient solution for patient treatment and care. RaySearch has the competence and innovative focus that Provision needs, and we share a vision of the future of cancer care."
RaySearch entered into a partnership with Neutron Therapeutics, Inc. in the US and Sumitomo Heavy Industries in Japan regarding treatment planning for boron neutron capture therapy (BNCT), which is a type of radiation therapy that enables targeting of cancer at the cellular level. BNCT will be an additional treatment modality in RayStation and users of BNCT will have access to the full range of advanced functionality in RayStation.
In December, the latest version of RaySearch's treatment planning system, RayStation 7, was launched, and now includes support for Mevion HYPERSCAN, uniform scanning for Mitsubishi Electric's proton therapy system, and integration with RayCare. Johan Löf, President and CEO of RaySearch, says: "We are endeavoring to facilitate an integrated strategy in cancer care. RayCare is moving us toward our goal to link together the main oncological disciplines. By adding support for Mevion's HYPERSCAN technology and uniform scanning for Mitsubishi's therapy devices, we have taken another step toward harmonizing all treatment planning. We are planning to add support for more systems in the near future."
In December, RaySearch announced the launch of µ-RayStation, a new version of the treatment planning system, which is specially adapted for pre-clinical research on small animals.
The first version of RayCare was released in December. RayCare is a new and innovative oncology information system [0IS], which supports workflows and activity management in cancer treatment, and offers an integrated planning environment in combination with RayStation 7. In future versions, RayCare will develop into an OIS with machine learning and a unique capacity to link together and coordinate workflows for radiation therapy, chemotherapy and surgery, which will enhance efficiency and ensure the optimal use of all resources. Johan Löf, President and CEO of RaySearch, says: "RayCare differs fundamentally from other OIS and we have invested a great deal of time and energy into creating something that can seriously improve cancer treatment. Our goal is to further develop cancer treatment with powerful tools that combine treatment planning, workflows and data management, resource optimization, machine learning and efficient follow-up."
In December, RaySearch also secured the first order for RayCare from Anderson Regional Cancer Center in the US.
At December 31, 2017, the total number of registered shares in RaySearch was 34,282,773, of which 8,654,975 were Class A and 25,627,798 Class B shares. The quotient value is SEK 0.50 and the company's share capital amounts to SEK 17,141,386.50. Each Class A share entitles the holder to ten votes, and each Class B share to one vote, at a general meeting. At December 31, 2017, the total number of voting rights in RaySearch was 112,177,548.
At December 31, 2017, the total number of shareholders in RaySearch was 6,893 and, according to Euroclear, the largest shareholders were as follows:
| Share | |||||
|---|---|---|---|---|---|
| Class A | Class B | capital, | |||
| Name | shares | shares | Total shares | % | Votes, % |
| Johan Löf | 6,243,084 | 618,393 | 6.861,477 | 20.0 | 56.2 |
| Lannebo Funds | 0 | 3,258,708 | 3,258,708 | 9.5 | 2.9 |
| Swedbank Robur Funds | 0 | 3.014.145 | 3.014.145 | 8.8 | 2.7 |
| First AP Fund | 0 | 2.364.138 | 2.364.138 | 6.9 | 2.1 |
| Second AP Fund | 0 | 1,929,651 | 1,929,651 | 5.6 | 1.7 |
| Montanaro funds | 0 | 1,415,000 | 1,415,000 | 4.1 | 1.3 |
| State Street Bank & Trust | 0 | 1.405.938 | 1.405.938 | 4.1 | 1.3 |
| Anders Brahme | 1,350,161 | 0 | 1.350.161 | 3.9 | 12.0 |
| Carl Filip Bergendal | 1.061,577 | 144,920 | 1,206,497 | 3.5 | 9.6 |
| Fourth AP Fund | 0 | 541,266 | 541,266 | 1.6 | 0.5 |
| Total, 10 largest shareholders | 8,654,822 | 14.692.159 | 23.346.981 | 68.1 | 90.3 |
| Others | 153 | 10,935,639 | 10,935,792 | 31.9 | 9.7 |
| Total | 8.654.975 | 25.627.798 | 34.282.773 | 100.0 | 100.0 |
The 2018 Annual General Meeting of RaySearch Laboratories AB (publ) will be held at the company's office, Sveavägen 44 in Stockholm, Sweden, on Wednesday, May 30, 2018 at 6:00 p.m. Light refreshments will be served from 5:00 p.m. when registration begins. Shareholders are entitled to have a matter addressed at the Annual General Meeting by submitting a written request to the Board of Directors by April 11, 2018, or after this date but within such a time that the matter can be included in the Notice of the Annual General Meeting.
Further information about registration for the Annual General Meeting and the Board's proposed decision items will also be posted on the company's website when notice of the Annual General Meeting is given. Notice of the 2018 Annual General Meeting is expected to be published on the company's website around April 24, 2018. RaySearch's 2017 Annual Report, including the Sustainability Report, is expected to be published on the company's website around April 27, 2018. A printed version of the Annual Report can be ordered from [email protected].
Since the company is in an expansive and capital-intensive phase, the Board of Director's for RaySearch proposes that no dividend be paid for 2017. No dividend was paid in 2016.
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 risk and financial risk. Risk management at RaySearch aims to identify, measure and reduce risks related to the Group's transactions and operations. No significant changes have been made to the risk assessment compared with the 2016 Annual Report. For more information about risks and risk management, see pages 7-9 and 31-32 of RaySearch's 2016 Annual Report.
RaySearch'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 - and the second quarter is normally the weakest.
RaySearch works actively to reduce its negative environmental impact and to become a sustainable enterprise. The company's products, comprising software to improve radiation therapy for cancer treatment, have a limited negative impact on the environment. 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 financially viable. RaySearch has an established environmental policy, and promotes social responsibility and long-term sustainable development based on sound ethical, social and environmental principles.
YEAR-END REPORT 2017
This year-end report has not been reviewed by the company's auditors.
Stockholm, February 15, 2018 The Board of Directors of RaySearch Laboratories AB (publ)
Carl Filip Bergendal Chairman of the Board Johan Löf President and Board member
Hans Wigzell Board member Johanna Öberg Board member
| Johan Löf, President and CEO | Tel: +46 8 510 530 00 |
|---|---|
| Peter Thysell, CFO | Tel: +46 70 661 05 59 |
E-mail:[email protected] E-mail: [email protected]
The information contained in the 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 February 15, 2018 at 7:45 a.m. CET.
Interim report for the first quarter, 2018 2018 Annual General Meeting Interim report for the first six months of 2018 Interim report for the third quarter, 2018
May 9, 2018 May 30, 2018 August 23, 2018 November 15, 2018
| AMOUNTS IN SEK 000S | OCT-DEC | JAN-DEC | ||
|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | |
| Net sales | 204,961 | 191,355 | 585,086 | 531,468 |
| Cost of goods sold 1) | $-9,773$ | $-13,725$ | $-36,650$ | $-26,872$ |
| Gross profit | 195,188 | 177,630 | 548,436 | 504,596 |
| Other operating income | 7,012 | 8,615 | 7,012 | 17,369 |
| Selling expenses | $-56,053$ | $-43,218$ | $-204,852$ | $-156,841$ |
| Administrative expenses | $-20,198$ | $-17,047$ | $-63,247$ | $-66,291$ |
| Research and development expenditure | $-27,251$ | $-25,047$ | $-104,304$ | -93,207 |
| Other operating expenses | $\mathbf{0}$ | $-684$ | $-23,376$ | $-6,067$ |
| Operating profit | 98,698 | 100,249 | 159,669 | 199,559 |
| Result from financial items | $-1,232$ | $-94$ | $-3,768$ | $-1,474$ |
| Profit before tax | 97,466 | 100,155 | 155,901 | 198,085 |
| Tax | $-25,177$ | $-24,231$ | $-38,274$ | $-46,677$ |
| Profit for the period 2) | 72,289 | 75,924 | 117,627 | 151,408 |
| Other comprehensive income | ||||
| Items to be reclassified to profit or loss | ||||
| Translation difference of foreign operations for the period | 9 | $-1,672$ | 2,610 | $-2,167$ |
| Items not to be reclassified to profit or loss | ||||
| Comprehensive income for the period 2) | 72,298 | 74,252 | 120,237 | 149,241 |
| Earnings per share before and after dilution (SEK) | 2.11 | 2.21 | 3.43 | 4.42 |
$^{11}$ Does not include amortization of capitalized development expenditure, which is included in research and development expenditure.
2) 100 percent attributable to Parent Company shareholders.
| AMOUNTS IN SEK 000S | OCT-DEC | JAN-DEC | ||
|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | |
| Opening balance | 508,127 | 385.936 | 460,188 | 319,517 |
| Profit for the period | 72,289 | 75,924 | 117,627 | 151,408 |
| Translation difference for the period | 9 | $-1,672$ | 2,610 | $-2,167$ |
| Dividend paid | $\blacksquare$ | $-8,570$ | ||
| Closing balance | 580,425 | 460,188 | 580,425 | 460,188 |
| AMOUNTS IN SEK 000S | DEC 31, 2017 | DEC 31, 2016 |
|---|---|---|
| ASSETS | ||
| Intangible fixed assets | 322,598 | 243,219 |
| Tangible fixed assets | 36,114 | 35,667 |
| Deferred tax assets | 780 | 512 |
| Other long-term receivables | 11,684 | 2,267 |
| Total fixed assets | 371,176 | 281,665 |
| Inventory | 33 | |
| Current receivables | 439,699 | 347,869 |
| Cash and cash equivalents | 104,156 | 87,720 |
| Total current assets | 543,888 | 435,589 |
| TOTAL ASSETS | 915,064 | 717,254 |
| EQUITY AND LIABILITIES | ||
| Equity | 580,425 | 460,188 |
| Deferred tax liabilities | 92,424 | 70,601 |
| Long-term interest-bearing liabilities | 9.751 | 61,527 |
| Accounts payable | 27,403 | 11,943 |
| Current interest-bearing liabilities | 74,033 | |
| Other current liabilities | 131,028 | 112,995 |
| TOTAL EQUITY AND LIABILITIES | 915,064 | 717,254 |
| AMOUNTS IN SEK 000S | OCT-DEC | JAN-DEC | |||
|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | ||
| Profit before tax | 97,466 | 100,155 | 155,901 | 198,085 | |
| Adjusted for | |||||
| non-cash items 1) | 24,306 | 19,780 | 56,181 | 75,238 | |
| Taxes paid | 1,469 | $-4,063$ | $-11,724$ | $-19,218$ | |
| Cash flow from operating activities before changes in working | |||||
| capital | 123,241 | 115,872 | 200,358 | 254,105 | |
| Cash flow from changes in working capital | $-76,456$ | $-42,006$ | $-52,877$ | $-133,257$ | |
| Cash flow from operating activities | 46,785 | 73,866 | 147,481 | 120,848 | |
| Cash flow from investing activities | $-46,207$ | $-31,207$ | $-148,132$ | $-106,949$ | |
| Cash flow from financing activities | 34,028 | 13,940 | 19,773 | 12,291 | |
| Cash flow for the period | 34,606 | 56,599 | 19,122 | 26,190 | |
| Cash and cash equivalents at the beginning of the period | 69,591 | 29,837 | 87,720 | 59,705 | |
| Exchange-rate difference in cash and cash equivalents | $-41$ | 1,284 | $-2,686$ | 1,825 | |
| Cash and cash equivalents at the end of the period | 104,156 | 87,720 | 104,156 | 87,720 |
$^{\,1)}$ These amounts primarily include amortization of capitalized development expenditure.
| AMOUNTS IN SEK 000S | OCT-DEC | JAN-DEC | ||
|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | |
| Net sales | 172,077 | 166,563 | 480,774 | 460,728 |
| Cost of goods sold $1$ | $-6,680$ | $-9,345$ | $-19,548$ | $-15,418$ |
| Gross profit | 165,397 | 157,218 | 461,226 | 445,310 |
| Other operating income | 7,012 | 8,615 | 7,012 | 17,369 |
| Selling expenses | $-31,999$ | $-25,953$ | $-133,066$ | $-106,745$ |
| Administrative expenses | $-20,442$ | $-17,263$ | $-64,065$ | $-67,178$ |
| Research and development expenditure | $-59,648$ | $-42,355$ | $-183,683$ | $-141,312$ |
| Other operating expenses | $-684$ | $-23,376$ | $-6,067$ | |
| Operating profit | 60,320 | 79,578 | 64,048 | 141,377 |
| Result from financial items | 4,972 | 2,955 | 2,887 | 2,012 |
| Profit after financial items | 65,292 | 82,533 | 66,935 | 143,389 |
| Appropriations | $-19,815$ | $-40,144$ | $-19,815$ | $-40,144$ |
| Profit before tax | 45,477 | 42,389 | 47,120 | 103,245 |
| Tax | $-10,986$ | $-10,655$ | $-13,227$ | $-25,817$ |
| Profit for the period | 34,491 | 31,734 | 33,893 | 77,428 |
$^{1)}$ Does not include amortization of capitalized development expenditure, which is included in research and development expenditure.
| AMOUNTS IN SEK 000S | OCT-DEC | JAN-DEC | ||
|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | |
| Profit for the period | 34.491 | 31.734 | 33,893 | 77.428 |
| Other comprehensive income | $\blacksquare$ | |||
| Comprehensive income for the period | 34,491 | 31.734 | 33,893 | 77,428 |
| AMOUNTS IN SEK 000S | DEC 31, 2017 | DEC 31, 2016 |
|---|---|---|
| ASSETS | ||
| Tangible fixed assets | 23,686 | 21,316 |
| Shares and participations | 1,046 | 640 |
| Deferred tax assets | 780 | 512 |
| Other long-term receivables | 10,405 | 2,267 |
| Total fixed assets | 35,917 | 24,735 |
| Inventory | 33 | |
| Current receivables | 458,270 | 350,149 |
| Cash and cash equivalents | 42,857 | 66,984 |
| Total current assets | 501,160 | 417,133 |
| TOTAL ASSETS | 537,077 | 441,868 |
| EQUITY AND LIABILITIES | ||
| Equity | 272,054 | 238,161 |
| Untaxed reserves | 97,510 | 77,695 |
| Deferred tax liabilities | ||
| Long-term liabilities | 50,000 | |
| Accounts payable | 30,168 | 16,249 |
| Other current liabilities | 137,345 | 59,763 |
| TOTAL EQUITY AND LIABILITIES | 537,077 | 441,868 |
The RaySearch Group applies International Financial Reporting Standards (IFRS) as adopted by the EU. The Swedish Financial Reporting Board's recommendation, RFR 1 Supplementary Accounting Rules for Corporate Groups, has also been applied. The accounting policies applied are consistent with those described in the 2016 Annual Report for RaySearch Laboratories AB [publ], which is available on www.raysearchlabs.com. No new accounting policies for 2017 had a material impact on the RaySearch Group during the period. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the applicable provisions of the Swedish Annual Accounts Act.
The Parent Company applies the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. The interim report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act, Chapter 9, Interim report.
The introduction of new accounting standards not yet effective but will apply during the forthcoming periods
As of the fiscal year commencing January 1, 2018, RaySearch applies IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers.
IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurement. RaySearch's analysis of the new standards has been completed and the new principles for classifuing financial assets will not impact the Group's earnings and position. The new model for calculating credit losses will impact the impairment loss process, but is not expected to have a significant impact on the Group's earnings and position.
The company follows the financial policy established by the Board of Directors, whereby exchange-rate changes are not hedged, and is therefore not impacted by the new principles for hedge accounting.
IFRS 15, Revenue from Contracts with Customers replaces previously issued standards and interpretations addressing revenue with an integrated model for revenue recognition. According to IFRS 15, revenue shall be recognized when promised goods or services are transferred to the customer, which can take place over time or at a point in time. Revenue shall constitute the amount the company expects to receive as payment for the transferred goods or services.
IFRS 15 will apply from January 1, 2018. The transition to the standard will be achieved through forward-looking retroactive application, meaning that any transitional effects will be recognized against shareholders' equity on January 1, 2018 and that the income statement will be presented in accordance with IFRS 15 as of 2018. As no contracts are in effect at the end of the year, according to previously applicable accounting policies, no transitional effects will arise as per January 1, 2018.
The transition to IFRS 15 will impact license and support revenues from RayStation and RayCare, primarily attributable to the warranty period offered by the company. According to IFRS 15, recognized license revenue shall be reduced by an amount corresponding to the value of the support included during the agreed warranty period, and this amount shall thereafter be taken up as income on an ongoing basis during the warranty period. The transition to IFRS 15 is expected to reduce the company's license revenues from RayStation and RayCare by approximately 12 percent compared to previously applied accounting policies, at the same time as the company's support revenues are expected to increase by a corresponding amount, though with an average delay of about nine months.
Overall, the transition to IFRS 15 is expected to result in a temporary reduction in revenue of approximately 6-8 percent in 2018 compared to previously applied accounting policies.
IFRS 16 Leases will come into effect on January 1, 2019. RaySearch has begun work to evaluate the impact of the new standard. The initial assessment is that the new standard will impact RaySearch with respect to rental leases for premises, vehicles and other large leased assets as these will be recognized in the balance sheet.
Preparation of the year-end report requires that company management makes estimates that affect the carrying amounts of assets, liabilities, revenues and expenses. 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 accounts receivable, cash and cash equivalents, accrued income, accrued expenses, accounts payable, bank loans and a finance lease. Long-term accounts receivable and accrued income are discounted, while other financial assets and liabilities have short-term maturities. Accordingly, the fair values of all financial instruments are deemed to correspond approximately to their carrying amounts. RaySearch has not applied net accounting to any financial assets or liabilities, and has no agreements that permit offsetting.
There were no transactions between RaySearch and related parties that materially affected the company's position and earnings during the period.
| AMOUNTS IN SEK 000S | DEC 31, 2017 | DEC 31, 2016 |
|---|---|---|
| Accounts receivable | 335,125 | 282.535 |
| Prepaid expenses | 20,674 | 14,167 |
| Accrued income | 78.482 | 47,576 |
| Other current receivables | 5.418 | 3.591 |
| Total current receivables | 439,699 | 347,869 |
| AMOUNTS IN SEK 000S | DEC 31, 2017 | DEC 31, 2016 |
|---|---|---|
| Accrued income | 11.648 | 2.267 |
| Total long-term receivables | 11,648 | 2.267 |
| AMOUNTS IN SEK 000S | DEC 31, 2017 | DEC 31, 2016 |
|---|---|---|
| Tax liabilities | 15,945 | 11,148 |
| Accounts payable | 27,403 | 11,943 |
| Accrued expenses and prepaid income | 106,059 | 89,616 |
| Bank borrowings | 74,033 | |
| Other current liabilities | 9,025 | 12,231 |
| Total current liabilities | 232,465 | 124,938 |
| AMOUNTS IN SEK 000S | DEC 31, 2017 | DEC 31, 2016 |
|---|---|---|
| Chattel mortgages | 100,000 | 100,000 |
| Guarantees | 4.199 | 17.700 |
| AMOUNTS IN SEK 000S | DEC 31, 2017 | DEC 31, 2016 |
|---|---|---|
| Bank borrowings | $\blacksquare$ | 50.000 |
| Other long-term liabilities (finance lease) | 9.751 | 11.527 |
| Total long-term liabilities | 9.751 | 61,527 |
| 2017 | 2016 | |||||||
|---|---|---|---|---|---|---|---|---|
| AMOUNTS IN SEK 000s | 04 | 03 | 02 | 01 | 04 | 03 | 02 | 01 |
| Income statement | ||||||||
| Net sales | 204,961 | 111,703 | 141,634 | 126,788 | 191,355 | 125,730 | 118,982 | 95,401 |
| Sales growth, % | 7.1 | $-11.2$ | 19.0 | 32.9 | 45.0 | 25.0 | 53.8 | 8.7 |
| Operating profit | 98,698 | 666 | 26,839 | 33,466 | 100,249 | 38,465 | 37,493 | 23,352 |
| Operating margin, % | 48.2 | 0.6 | 18.9 | 26.4 | 52.4 | 30.6 | 31.5 | 24.5 |
| Profit for the period | 72,289 | $-1,028$ | 20,092 | 26,274 | 75,924 | 28,887 | 28,837 | 17,760 |
| Net margin, % | 35.3 | $-0.9$ | 14.2 | 20.7 | 39.7 | 23.0 | 24.2 | 18.6 |
| Cash flow | ||||||||
| Operating activities | 46,785 | 35,669 | 25,640 | 39,387 | 73,866 | 10,211 | 14,908 | 21,863 |
| Investing activities | $-46,207$ | $-33,412$ | $-37,111$ | $-31,402$ | $-31,207$ | $-23,320$ | $-26,347$ | $-26,075$ |
| Cash flow before financing activities | 578 | 2,257 | $-11,471$ | 7,985 | 42,659 | $-13,109$ | $-11,439$ | $-4,212$ |
| Financing activities | 34,028 | $-1,025$ | $-2,239$ | $-10.991$ | 13,940 | 8,955 | $-9,591$ | $-1,013$ |
| Cash flow for the period | 34,606 | 1,232 | $-13,710$ | $-3,006$ | 56,599 | $-4,154$ | $-21,030$ | $-5,225$ |
| Capital structure | ||||||||
| Equity/assets ratio, % | 63.4 | 67.2 | 67.1 | 66.2 | 64.2 | 65.8 | 64.3 | 66.5 |
| Net debt | $-20,372$ | $-20,062$ | $-20,841$ | $-32,869$ | $-26,193$ | 30,420 | 16,018 | $-4,784$ |
| Debt/equity ratio | 0.0 | 0.0 | $-0.0$ | $-0.1$ | $-0.1$ | 0.1 | 0.0 | 0.0 |
| Net debt/EBITDA | $-0.1$ | $-0.1$ | $-0.1$ | $-0.1$ | $-0.1$ | 0.1 | 0.1 | 0.0 |
| Per share data, SEK | ||||||||
| Earnings per share before dilution | 2.11 | $-0.03$ | 0.59 | 0.77 | 2.21 | 0.84 | 0.83 | 0.52 |
| Earnings per share after dilution | 2.11 | $-0.03$ | 0.59 | 0.77 | 2.21 | 0.84 | 0.83 | 0.52 |
| Equity per share | 16.93 | 14.82 | 14.83 | 14.20 | 13.42 | 11.26 | 10.40 | 9.85 |
| Share price at the end of the period | 171.0 | 173.5 | 235.5 | 235.0 | 184.5 | 198.50 | 119.00 | 120.50 |
| Other No. of shares before and 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 | 253 | 240 | 219 | 201 | 192 | 185 | 181 | 177 |
| AMOUNTS IN SEK 000s | Jan 2017- Dec 2017 |
Oct 2016- Sep 2017 |
Jul 2016- Jun 2017 |
Apr 2016- Mar 2017 |
Jan 2016- Dec 2016 |
Oct 2015- Sep 2016 |
Jul 2015- Jun 2016 |
Apr 2015- Mar 2016 |
|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||
| Net sales | 585.086 | 571.480 | 585.507 | 562.855 | 531.468 | 472.070 | 446.909 | 405,268 |
| Operating profit | 159.669 | 161.220 | 199.019 | 209.673 | 199.559 | 143.612 | 125.232 | 85,625 |
| Operating margin, % | 27.3 | 28.2 | 34.0 | 37.3 | 37.5 | 30.4 | 28.0 | 21.1 |
The interim report refers to 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 financial measures that are used to complement the financial information reported in accordance with IFRS are described below.
| Non-IFRS financial measures | Definition | Reason for using the measure |
|---|---|---|
| Order intake excluding | The value of all orders received and changes to | Order intake is an indicator of future revenues and is thus a |
| service agreements | existing orders during the current period excluding the | key figure for the management of RaySearch's operations. |
| value of service agreements. | ||
| Order intake for RayStation | The value of orders received and changes to existing | Order intake is an indicator of future revenues and is thus a |
| excluding service agreements | orders for RayStation during the current period, | key figure for the management of RaySearch's main |
| excluding the value of service agreements. | operational areas. | |
| Order backlog for RayStation | The value of orders for RayStation at the end of the | The order backlog shows the value of orders already |
| period that the company has yet to deliver and | booked by RaySearch that will be converted to revenues in | |
| recognize as revenue. | the future. | |
| Sales growth | The change in net sales compared with the year- | The measure is used to track the performance of the |
| Organic sales growth | earlier period expressed as a percentage | company's operations between periods This measure is used to monitor underlying sales growth |
| Sales growth excluding currency effects | driven by changes in volume, pricing and mix for | |
| comparable units between different periods | ||
| Gross profit | Net sales minus cost of goods sold | Gross profit is used to illustrate the margin before sales, |
| research, development and administrative expenses | ||
| Operating profit | Calculated as earnings before financial items and tax | Operating profit/loss provides an overall picture of the total |
| generation of earnings in operating activities | ||
| Operating margin | Operating profit/loss expressed as a percentage of net | Together with sales growth, the operating margin is a key |
| sales | element for monitoring value creation | |
| Net margin | Profit for the period as a percentage of net sales for | The net margin illustrates the percentage of net sales |
| the period | remaining after the company's expenses have been | |
| deducted | ||
| Equity per share | Equity divided by number of shares at the end of the | Illustrates the return generated on the owners' invested |
| period | capital per share from a shareholder perspective | |
| Rolling 12 months' sales, | Sales, operating profit/loss or other results measured | This measure is used to more clearly illustrate the trends |
| operating profit/loss or other | over the last 12-month period | for sales, operating profit/loss and other results, which is |
| results | relevant because RaySearch's revenues are subject to | |
| monthly variations | ||
| Working capital | The Group's working capital is calculated as current | This measure shows how much working capital is tied up in |
| operating receivables less operating liabilities | operations and can be shown in relation to net sales to demonstrate the efficiency with which working capital has |
|
| been used | ||
| Return on equity | Calculated as profit/loss for the period as a | Illustrates the return generated on the owners' invested |
| percentage of average equity Average equity is | capital from a shareholder perspective | |
| calculated as the sum of 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 | This is a standard measure to show financial risk, and is |
| expressed as the percentage of the total restricted equity | ||
| financed by the owners | ||
| Net debt | Interest-bearing liabilities less cash and cash | The measure shows the Group's total indebtedness |
| equivalents 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 |
| Net debt/EBITDA | Net debt in relation to operating profit before | A relevant measure from a credit perspective that shows |
| depreciation over the past 12-month period | the company's | |
| ability to repay its debts |
| AMOUNTS IN SEK 000s | Dec 31, 2017 | Dec 31, 2016 |
|---|---|---|
| Working capital | ||
| Accounts receivable | 335,125 | 282,535 |
| Inventory | 33 | |
| Accrued income | 89,950 | 49,843 |
| Other current receivables | 5,418 | 17,758 |
| Accounts payable | $-27,403$ | $-11,943$ |
| Other current liabilities | $-131,029$ | $-112,995$ |
| Working capital | 272,094 | 225,198 |
| AMOUNTS IN SEK 000s | Dec 31, 2017 | Dec 31, 2016 |
| Net debt | ||
| Current interest-bearing liabilities | 74,033 | |
| Long-term interest-bearing liabilities | 9,751 | 61,527 |
| Cash and cash equivalents | $-104,156$ | $-87,720$ |
| Interest-bearing receivables | ||
| Net debt | $-20,372$ | $-26,193$ |
| Full-year | Full-year | |
| AMOUNTS IN SEK 000s | 2017 | 2016 |
| EBITDA | ||
| Operating profit | 159,669 | 199,559 |
| Amortization and depreciation | 70,757 | 67,339 |
| EBITDA | 230,426 | 266,898 |
RaySearch Laboratories AB (publ) Box 3297 SE-103 65 Stockholm, Sweden
Sveavägen 44, Floor 7 SE-111 34 Stockholm, Sweden
Tel: +46 8 510 530 00 www.rausearchlabs.com Corporate Registration Number: 556322-6157
RaySearch Laboratories AB (publ) is a medical technology company that develops advanced software solutions for improved radiation therapy of cancer. The company develops and markets the RayStation treatment planning system to clinics all over the world and distributes the products through licensing agreements with leading medical technology companies. The company is also developing the next-generation oncology information system, RayCare, which was launched in December 2017, and comprises a new product area for RaySearch. RaySearch's software is currently used by over 2,600 clinics in more than 65 countries. The company was founded in 2000 as a spin-off from the Karolinska Institute in Stockholm and the share has been listed on Nasdaq Stockholm since 2003. More information about RaySearch is available at www.raysearchlabs.com.
RaySearch's mission is to contribute to the advancement of cancer care by developing innovative software solutions that improve quality of life for cancer patients and save lives.
RaySearch's revenues are generated when customers pay an initial license fee for the right to use RaySearch's software and an annual service fee for access to updates and support. The RayStation treatment planning system and the RayCare oncology information system are developed at RaySearch's head office in Stockholm, and distributed and supported by the company's global marketing organization.
A radiation therapy clinic essentially needs two software platforms for its operations: an information system, and a treatment planning system. With RayStation and RayCare, RaySearch will strengthen its position and continue to grow with high profitability. The strategy rests on a strong focus on software development, leading functionality, broad support for many different types of treatment techniques and radiation therapy devices, as well as extensive investments in research and development.
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