AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

C-RAD

Quarterly Report Oct 27, 2017

3148_10-q_2017-10-27_44f477b3-8aab-4c43-bc8e-99b30fd25d09.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

C-RAD AB - INTERIM REPORT

JANUARY-SEPTEMBER 2017

PRESS RELEASE OCTOBER 27, 2017

ORDER BACKLOG DOUBLED OVER LAST YEAR 140 (68) MSEK

THIRD QUARTER 2017

  • Order intake: 55.5 (28.2) MSEK, +97%. – Elekta, New Karolinska Hospital, Sweden: 21 MSEK. – University Medical Center Freiburg, Germany: 7,8 MSEK.
  • Revenues: 33.2 (22.5) MSEK, +48%.
  • EBITDA: -0.3 (-6.4) MSEK.
  • Operating loss: -1.4 (-7.9) MSEK.
  • Result per share -0.05 (-0.29) SEK.

"It is a very encouraging development

the progress is a very positive signal of a long-term demand for the company's products, says Tim Thurn, CEO of C-RAD".

C-RAD has taken during this year. I believe

• Positive operating cash flow 10,0 (-13,9) MSEK.

INTERIM PERIOD JANUARY-SEPTEMBER 2017

  • Order intake: 145.0 (71.6) MSEK, +103%.
  • Revenues: 91.1 (55.4) MSEK, +64%.
  • EBITDA: -7.1 (-21.3) MSEK.
  • Operating loss: -11.2 (-25.9) MSEK.
  • Result per share: -0.38 (-1.08) SEK.

SAMMANDRAG FINANSIELLT RESULTAT

Q3, JUL-SEP INTERIM PERIOD, JAN-SEP FULL YEAR
(MSEK) 2017 2016 Change 2017 2016 Change 2016
Order intake 55,5 28,2 97% 145,0 71,6 103% 113,5
Revenues 33,2 22,5 48% 91,1 55,4 64% 82,7
Gross profit 19,5 12,3 59% 53,4 30,8 73% 46,8
Gross profit margin 59% 55% 59% 56% 57%
Operating loss $-1,4$ $-7,9$ 82% $-11,2$ $-25,9$ 57% $-30,4$
Net results after tax $-1,7$ $-8,0$ 79% $-11,8$ $-26,6$ 56% $-31,2$
Cash 17,9 5,7 214% $\overline{\phantom{a}}$ $\overline{\phantom{a}}$ 0,0
Share price* 33,90 10,90 211% $\overline{\phantom{a}}$ ٠ 12,1
Order backlog 140,0 68,2 105% ٠ ٠ 83,5
out of which Products 98,7 50,9 94% 61,3
out of which Service contracts 41,3 17,3 139% 22,2
*SEK, balance sheet day

COMMENTS FROM THE CEO

C-RAD received its largest order ever and continue to drive sustained growth

In the third quarter we continued to grow considerable with repetitive significant growth in order intake as well as in revenues. Order inflow doubled and revenue increased with sizeable 48 percent compared to the same period last year. This positive trend that is reflected in the results is in line with the fundamentals of our growth strategy and will continue to drive long term growth.

Looking to the aggregated development during 2017 orders developed with 103 percent and revenues with 64 percent. This is witnessing the increased demand in the market place for C-RAD´s innovative products and we continue to see these favourable opportunities in the market. The strongest region measured in order intake was the EMEA region with a growth of over 300 percent. We received two large orders for two prestigious customers with a total value of 29 mSEK - one for a New Karolinska Hospital in Stockholm, Sweden and one from the University Hospital in Freiburg, Germany. The largest order in C-RAD's history includes C-RAD's cutting edge surface tracking technology as well as other products C-RAD is distributing for the newly built university hospital in Stockholm – New Karolinska Hospital.

The order back log doubled over last year and amounts to about 140 MSEK, out of which 100 MSEK related to Products and 40 MSEK related to Life Cycle Business (Service and support). 80 percent of the order back log for Products is normally realized as revenues within 12 months, while the service contracts cover a period of 5 years in average and the expected revenues for the coming 12 months is 6,0 MSEK.

Growing revenues, a high gross profit margin of 59 percent, and a stable cost structure, led to a significantly improved EBITDA result compared to the same period last year. By the investments made in developing an international sales force and to strategically expand the sales organization, the third quarter showed a positive operating cash flow.

In September C-RAD participated at the annual conference of the American Society for radiation Therapy and Oncology (ASTRO) in San Diego. Customers had the opportunity to experience the existing C-RAD products, but also two new products that we presented to our customers for the first time. cPatient is an additional technological innovation, an optical system that allows to verify the patient based on facial recognition prior to treatment. This is another leap to make treatments safer. The second product cConnect is an online service platform to increase the uptime of systems at the customer based on predictive service analysis.

It is a very encouraging development C-RAD has taken during this year. I believe the progress is a very positive signal of a long-term demand, at the same time individual quarters might show volatile results moving forward. The fundamental driver for the development is the increasing awareness of the need for accurate patient positioning solutions in the radiation therapy market. From the broad acceptance of the C-RAD solutions and the positive impact on the treatment quality, patients are the one benefiting most. C-RAD has a very good position and is serving the cancer centers with a well proven, innovative solution advancing cancer care, says Tim Thurn, CEO of C-RAD.

FINANCIAL DEVELOPMENT, GROUP

ORDER INTAKE

Order intake during the third quarter amounted to 55.5 MSEK compared to 28.2 MSEK in the previous year, an increase of 97 percent. Order intake growth was primarily driven by the EMEA region and the large order from Elekta Instruments AB in Sweden for Nya Karolinska Solna (NKS) of 21.0 MSEK and the order from University Medical Center Freiburg in Germany of 7.8 MSEK. Good progress was also seen in Asia, with order intake in primarily Japan and China. The decrease in the US region during Q3 is expected to be temporary and due to volatility between the quarters. The development in the US for the first three quarters in full was very good. Order intake for January to September amounted to 145 MSEK compared to 71.6 MSEK in the previous year, an increase of 103 percent. This means that we have already in the third quarter of 2017 exceeded order intake for the full year 2016.

Sales of positioning products increased by 84 percent during the third quarter 2017 compared to the same period in 2016. Order intake for Distribution products increased substantially as the order from NKS included a large number of Distribution products.

REVENUES

Revenues increased from 22.5 MSEK during the third quarter 2016 to 33.2 MSEK during the third quarter 2017, an increase of 48 percent. EMEA stood for the large part of the deliveries during the quarter following their strong order intake during the last quarters. The average delivery time for products is around six months. Revenues for January – September increased from 55.4 MSEK in 2016 to 91.1 MSEK in 2017, +64 percent. Also concerning the revenues, we have now exceeded the full year figure for 2016.

SEASONALITY

There is a seasonal pattern in C-RAD's operations. The second half of the year and the fourth quarter in particular are usually the strongest periods, both in terms of order intake and revenues. This is due to the fact that a large number of customers are hospitals and clinics, which have annual budgets per calendar year. As the larger part of C-RAD's cost base is fixed, fluctuations in revenue has a direct impact on the quarterly operating profit.

ORDER BACKLOG AND ORDER CONVERSION RATE

The order backlog represents orders that have been received but not delivered and invoiced. The backlog amounted to 140 MSEK at the end of third quarter 2017 compared to 68.2 MSEK at the same period 2016, an increase of 105 percent. From the total order backlog, 98.7 (50.8) MSEK involves products and 41.3 (17.3) MSEK refer to Life Cycle Business (service contracts). 6 MSEK of the order backlog for Life Cycle Business will be recognized as revenue within 12 months, as service contracts are recognized as revenue over the contract period. This can be compared to revenues of 4.3 MSEK for the last 12 months. The service contract can be up to eight years while the average duration is around five years.

The weighted average delivery time for products recognized as revenue in the third quarter was five months. This is the time from receiving an order until the order is delivered and revenue recognized. In the graph below the development of the order backlog is presented. Service contracts are presented separately from Q4 2014 onwards.

GROSS PROFIT

Gross profit was 59 percent during the third quarter 2017, compared to 55 percent in the corresponding period in 2016. The gross profit has continually improved during the last quarters as a result of C-RAD's focus on improving the supply chain. Fluctuations in gross profit can be expected in shorter periods as it is dependent on the product mix and market as well as the exchange rate fluctuations. Gross profit for the whole period January – September was 59 (55) percent.

OPERATIONAL EXPENSES

Operational expenses for the third quarter 2017 amounted to -8.0 MSEK compared to -9.0 MSEK in the previous year. Operational expenses for January – September amounted to -25.7 (-25.0) MSEK.

PERSONNEL EXPENSES

Personnel expenses for the third quarter 2017 amounted to -12.4 (-10.3) MSEK. The increase compared to last year is mainly related to the expansion of operations, which entails sales resources being enhanced. Compared to the second quarter of 2017, personnel cost decreased by 0.8 MSEK. As the majority of the C-RAD employees are located in Sweden, the decrease is in part due to reverse holiday accruals in conjunction with the summer vacations. Personnel expenses for January – September amounted to -37.8 (-29.4) MSEK.

The average number of employees increased from 43 in Q3 2016 to 46 in the corresponding period in 2017. At the end of September 2017, the number of employees in the Group amounted to 47 (46).

CAPITALIZED DEVELOPMENT COSTS

Capitalized development costs amounted to 22.5 (20.4) MSEK at the end of September. Capitalizations during Q3 2017 of 1.1 (0.3) MSEK are related to GEMini (0.8 MSEK) and continued development of the Positioning products (0.3 MSEK).

GEMini is continually showing good progress in performance test, both in short-term repetitive tests and long-term. Further verification of the product is needed, but we continue to be confident of the technical success of the project.

RESULTS BEFORE TAX

Net results before tax during the quarter amounted to -1.7 MSEK compared to -8.0 MSEK in 2016. For the full period January to September, result before tax amounted to -11.8 (-26.6) MSEK.

FINANCING AND CASH FLOW

By September 30, C-RADs total available funds amounted to 37.6 MSEK. Cash balance was 17.9 MSEK, out of which 5,6 MSEK in own bank assets and 12,2 MSEK refer to utilization of the invoice discounting solution. Remaining available funds of 19.7 MSEK refer to unutilized credit facilities. The invoice discounting solution limit was temporarily increased with 8 MSEK during the quarter. The higher level is valid until February, 2018. Positive cash flow during July-September amounted to 9.1 (-9,8) MSEK. The positive operating cash flow of 10 (-13,9) MSEK is primarily related to increased payments from clients.

Positive cash flow for January – September 2017 amounted to 5.6 MSEK. Cash flow from financing amounted to 13,1 MSEK, due to usage of the invoice discounting solutions with Erik Penser Bank AB which amounted to MSEK 12.2 as per September 30, and cash flow from the warrant program. Negative operating cash flow amounted to -3.3 MSEK. Capitalized development costs are included in investment activities, but not as adjustment for non-cash it

NET FINANCIAL INCOME

Net financial income for the quarter amounts to -0.3 (-0.1) MSEK. For the period January – September, it amounts to -0.6 (-0.7) MSEK.

SIGNIFICANT RISKS AND UNCERTAINTIES

Reference is made to the Annual Report for 2016 page 56-59, regarding significant risks and uncertainties, and how these are managed. The capitalized development costs for the Gemini project amounts to 2.5 MSEK for the first nine months of 2017. Until the project is launched and starts to generate revenues, a certain degree of uncertainty prevails. If the project does not develop in line with expectations, the Company will be forced to write down all or part of the capitalized development costs. Valuations of intangible assets and deferred tax asset are based on future sales and order backlog under the assumption that sufficient funding will be available for future expectations to be fulfilled.

OTHER SIGNIFICANT EVENTS DURING THE QUARTER

There were no other significant events during the quarter.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

There are no significant events to report for the period following September 30.

PARENT COMPANY

No operations are carried in the Parent Company except for Group Management and administration. For the full period January – September, revenues for the Parent Company amounted to 12.6 (14.0) MSEK and operating loss amounted to -2.8 (-0.3).

UPCOMING EVENTS

October 27, 2017 Webcast Q3, 2017, time: 11.00. For more information and registration, visit www.c-rad.com.
January 31, 2018 Q4, 2017 report
April 26, 2018 Q1, 2018 report
April 26, 2018 Annual General Meeting 2018, Uppsala. Time and place will be announced later.

NOMINATION COMMITTEE

C-RAD's Nomination Committee ahead of the 2018 Annual General Meeting comprises:

  • Per Hamberg
  • Olle Stenfors
  • Lars Nyberg

The Nomination Committee has appointed Per Hamberg as Chairman of the Committee. The Nomination Committee is tasked ahead of the 2017 Annual General Meeting with preparing proposals pertaining to the number of Board members, Board fees, the composition of the Board, election of the Chairman of the Board, election of the Chairman of the Annual General Meeting, auditors' fees and the election of auditors as well as guidelines for appointing the Nomination Committee.

Proposal to the nomination committee can be delivered via email: [email protected] no later than February 9, 2018.

OTHER INFORMATION

This interim report provides a true and fair view of the Group's operations, financial position and earnings. If there are any deviations between the reports in English and Swedish, the Swedish version is valid. This interim report has been reviewed by the company auditors.

Tim Thurn CEO

For more information: Tim Thurn, CEO, Phone: +46 (0)18 66 69 30

C-RAD AB (publ) Bredgränd 18, SE-753 20 Uppsala, Sweden Telephone +46 (0)18 - 66 69 30 www.c-rad.com Corp. reg. no 556663-9174

Since December 2014, C-RAD AB has been listed on the Nasdaq Stockholm exchange Small Cap list. The information in this interim report is such that C-RAD is required to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, on Oct 27, 2017 at 8:30 am.

AUDITOR'S REPORT

C-RAD AB corp. reg. no. 556663-9174

INTRODUCTION

We have reviewed the condensed interim financial information (interim report) of C-RAD AB as of 30 September 2017 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information 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.

SCOPE OF 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 we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

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.

Stockholm, 27 October 2017 Öhrlings PricewaterhouseCoopers AB

Michael Bengtsson Authorized Public Accountant

Consolidated Income Statement in brief Q3 Q3 Jan-Sep Jan-Sep FY
Mkr 2017 2016 2017 2016 2016
Revenues 33,2 22,5 91,1 55,4 82,7
Raw material and consumables -13,7 -10,1 -37,8 -24,6 -35,9
Gross profit 19,5 12,3 53,4 30,8 46,8
Gross profit margin 59% 55% 59% 56% 57%
Other external expenses -8,0 -9,0 -25,7 -25,0 -33,7
Personnel expenses -12,4 -10,3 -37,8 -29,4 -41,5
Capitalized development costs 1,1 0,3 3,1 1,9 3,5
Depreciation -1,1 -1,5 -4,1 -4,6 -5,9
Other operating income/expenses -0,4 0,2 -0,1 0,4 0,5
Total operating expenses -20,8 -20,2 -64,5 -56,7 -77,1
Operating income -1,4 -7,9 -11,2 -25,9 -30,4
Financial income 0,0 0,0 0,0 0,0 0,0
Financial costs -0,3 -0,1 -0,6 -0,7 -0,9
Income before tax -1,7 -8,0 -11,8 -26,6 -31,2
Tax 0,0 0,0 0,0 0,0 0,0
Net income -1,7 -8,0 -11,8 -26,6 -31,2
(Attributable to Parent company´s shareholders)
Results per share before dilution -0,05 -0,29 -0,38 -1,08 -1,21
Results per share after dilution -0,05 -0,29 -0,38 -1,08 -1,21
Consolidated Statement of Comprehensive Income Q3 Q3 Jan-Sep Jan-Sep FY
MSEK 2017 2016 2017 2016 2016
Net income -1,7 -8,0 -11,8 -26,6 -31,2
Other comprehensive income
Income/expenses recognized in equity
Exchange differencies on translating foreign operations -1,3 -0,1 -1,5 -0,1 -0,3
Other comprehensive income of the period (after tax) -3,0 -8,1 -13,3 -26,7 -31,5
Total comprehensive income for the period -3,0 -8,1 -13,3 -26,7 -31,5
(Attributable to Parent company´s shareholders)
Segment Reporting Q3 Q3 Jan-Sep Jan-Sep FY
MSEK 2017 2016 2017 2016 2016
MSEK 2017 2016 2017 2016 2016
Revenues by segment
Positioning 33,0 22,3 90,7 54,8 82,0
Imaging 0,2 0,2 0,5 0,5 0,7
Total revenues 33,2 22,5 91,1 55,4 82,7
Income by segment
Positioning -1,3 -7,8 -10,8 -25,5 -29,5
Imaging -0,1 -0,1 -0,4 -0,4 -0,8
Operating income -1,4 -7,9 -11,2 -25,9 -30,4
Revenue per gegraphical market
North America 8,2 5,8 22,6 18,9 30,3
EMEA 21,2 11,1 50,2 28,4 38,6
APAC 3,8 5,6 18,3 8,0 13,7
Total 33,2 22,5 91,1 55,4 82,7

Segment reporting is based on the same accounting principles as applied in the consolidated financial statement for 2016.

Consolidated Balance Sheet in brief
MSEK
30-9-2017 30-9-2016 31-12-2016
Intangible assets
Intangible assets 27,7 26,6 27,0
Tangible assets 2,4 4,7 3,3
Long-term receivables 0,1 0,2 0,1
Deferred tax receivables 7,1 7,1 7,1
Total non-current assets 37,3 38,6 37,5
Inventory 6,8 8,3 6,4
Current receivables 48,0 39,3 45,5
Cash and liquid assets 17,9 5,7 12,7
Total current assets 72,7 53,3 64,6
Total assets 110,0 91,9 102,1
Equity 58,3 54,0 70,6
Convertible bonds 0,0 11,8 11,8
Other long-term liabilities 0,3 0,7 0,6
Total non-current liabilities 0,3 12,6 12,5
Current liabilities 51,4 25,4 19,0
Total current liabilities 51,4 25,4 19,0
Total equity and liabilities 110,0 91,9 102,1
Consolidated Cash Flow Statement in brief Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec
MSEK 2017 2016 2017 2016 2016
Operating income (1,4) (7,9) (11,2) (25,9) (30,4)
Adjustment for non-cash items 1,5 1,9 4,4 4,9 5,7
Interests received 0,0 0,0 0,0 0,0 0,0
Interests paid (0,3) (0,1) (0,6) (0,7) (0,9)
Cash flow from operating activites before working capital changes (0,1) (6,1) (7,4) (21,7) (25,5)
Changes in working capital 10,1 (7,9) 4,0 (14,6) (19,2)
Cash flow from operating activites 10,0 (13,9) (3,3) (36,3) (44,6)
Investments (1,5) (0,4) (4,3) (2,7) (4,0)
Cash flow from investing activities (1,5) (0,4) (4,3) (2,7) (4,0)
Share issue 0,0 0,0 0,0 40,2 61,6
Premiums received for warrants 0,2 0,1 0,9 0,1 0,1
Amortization of loans 0,4 5,3 12,2 0,4 0,0
New borrowings 0,0 (0,8) 0,0 (0,6) (5,0)
Cash flow from financing activities 0,6 4,6 13,1 40,1 56,7
Net increase (decrease) in cash and cash equivalents 9,1 (9,8) 5,6 1,1 8,1
Cash and liquid assets at beginning of period 9,1 15,5 12,7 4,4 4,4
Exchange rate differences (0,3) 0,0 (0,3) 0,2 0,2
Cash and liquid assets at end of period 17,9 5,7 17,9 5,7 12,7
Change in Group Equity Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec
MSEK 2017 2016 2017 2016 2016
Opening balance 61,3 61,6 70,6 40,0 40,0
Share issue (0,0) 0,1 1,0 45,6 67,0
Cost of Share Issue 0,0 0,0 0,0 (5,3) (5,4)
Equity part of convertible loan (0,0) 0,1 0,0 0,1 (0,2)
Changes in the period 0,0 0,3 1,0 40,5 61,5
Total comprehensive income for the period (3,0) (8,0) (13,3) (26,6) (30,9)
Closing balance at end of period 58,3 54,0 58,3 54,0 70,6
Parent Company Income Statement in brief Jan-Sep Jan-Sep Jan-Dec
MSEK 2017 2016 2016
Revenues 12,6 14,0 19,8
Operating expenses -14,1 -13,7 -18,0
Operating income -1,5 0,4 1,8
Financial items -1,3 -0,7 -12,7
Income before tax -2,8 -0,3 -10,9
Tax 0,0 0,0 0,0
Net income -2,8 -0,3 -10,9
Parent Company Balance Sheet in brief
MSEK
30-9-2017 30-9-2016 31-12-2016
Intangible assets 4,6 5,4 5,2
Tangible assets 0,0 0,0 0,0
Financial assets 165,3 157,1 170,2
Total non-current assets 170,0 162,6 175,4
Current receivables 1,2 0,9 0,8
Cash and liquid assets 0,2 0,7 0,5
Total assets 171,4 164,1 176,7
Restricted equity 4,4 4,1 4,4
Unrestricted equity 152,3 143,5 154,1
Total equity 156,7 147,7 158,5
Convertible bonds 0,0 11,7 11,7
Other non-current liabilities 0,3 0,7 0,6
Total non-current liabilities 0,3 12,5 12,4
Convertible bonds 11,7 0,0 0,0
Other current liabilities 2,6 4,0 5,8
Total current liabilibites 14,3 4,0 5,8
Total equity and liabilities 171,4 164,1 176,7

Group Review per quarter

Income Statement
(MSEK)
Q3
2017
Q2
2017
Q1
2017
Q4
2016
Q3
2016
Q2
2016
Q1
2016
Q4
2015
Q3
2015
Q2
2015
Q1
2015
FY
2016
FY
2015
Revenues 33,2 32,2 25,8 27,3 22,5 15,6 17,3 20,5 15,4 15,1 15,2 82,7 66,2
Cost of Sale -13,7 -13,6 -10,4 -10,6 -10,1 -7,2 -8,0 -10,5 -8,8 -6,2 -6,6 -35,9 -32,1
Gross Profit 19,5 18,6 15,4 16,7 12,4 8,4 9,3 10,0 6,6 8,9 8,6 46,8 34,1
Other external expenses -8,0 -8,9 -8,8 -9,4 -9,0 -8,3 -7,0 -7,8 -6,6 -6,2 -6,0 -33,7 -26,6
Personnel expenses -12,4 -13,2 -12,2 -12,1 -10,3 -9,3 -9,8 -8,7 -8,3 -7,9 -6,2 -41,5 -31,1
Capitalized development costs 1,1 0,9 1,1 1,6 0,3 0,9 0,7 1,4 0,6 1,2 1,1 3,5 4,3
Depreciation -1,1 -1,4 -1,6 -1,3 -1,5 -1,5 -1,6 -1,9 -1,7 -0,9 -1,1 -5,9 -5,6
Other operating income/expenses
Operating expenses
-0,4
-20,8
-0,1
-22,7
0,5
-21,0
0,1
-21,1
0,2
-20,3
0,1
-18,1
0,2
-17,5
1,1
-15,9
2,4
-13,6
-1,3
-15,1
2,3
-9,9
0,5
-77,1
4,5
-54,5
Operating income -1,4 -4,1 -5,6 -4,4 -7,9 -9,7 -8,2 -5,9 -7,0 -6,2 -1,3 -30,4 -20,4
Financial items. net -0,3 -0,2 -0,2 -0,2 -0,1 -0,3 -0,3 0,0 -0,4 0,2 -0,6 -0,9 -0,8
Income before tax -1,7 -4,3 -5,8 -4,6 -8,0 -10,0 -8,5 -5,9 -7,4 -6,0 -1,9 -31,2 -21,2
Tax 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
Net income -1,7 -4,3 -5,8 -4,6 -8,0 -10,0 -8,5 -5,9 -7,4 -6,0 -1,9 -31,2 -21,2
Balance Sheet
(MSEK)
Q3
2017
Q2
2017
Q1
2017
Q4
2016
Q3
2016
Q2
2016
Q1
2016
Q4
2015
Q3
2015
Q2
2015
Q1
2015
FY
2016
FY
2015
Non-current assets
Current assets
37,3
72,7
37,3
69,9
37,5
62,3
37,5
64,6
38,6
53,3
38,9
47,9
38,9
41,5
39,7
33,9
40,0
29,0
38,0
42,5
36,3
32,3
37,5
64,6
39,7
33,9
Total assets 110,0 107,2 99,8 102,1 91,9 86,8 80,4 73,6 69,0 80,5 68,6 102,1 73,6
Equity 58,3 61,3 64,8 70,6 54,0 61,6 30,5 40,0 46,2 55,4 36,4 70,6 40,0
Non-current liabilities 0,3 12,3 12,4 12,5 12,6 12,7 28,2 12,8 13,1 11,7 16,8 12,5 12,8
Current liabilities 51,4 33,6 22,6 19,0 25,3 12,5 21,7 20,8 9,7 13,4 15,4 19,0 20,8
Total equity and liabilities 110,0 107,2 99,8 102,1 91,9 86,8 80,4 73,6 69,0 80,5 68,6 102,1 73,6
Cash Flow Statement Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY FY
(MSEK) 2017 2017 2017 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015
Operating cashlow
Cashflow from investing activities
10,0
-1,5
-13,3
-2,8
-3,5
-1,6
-8,2
-0,8
-13,9
-0,4
-11,4
-1,7
-11,0
-0,7
-3,5
-1,4
-5,1
-1,2
-10,1
-1,7
-8,1
0,0
-44,6
-4,0
-22,9
-6,0
Cashflow from financing activities 0,6 12,7 7,6 15,9 4,5 22,0 13,8 4,8 0,0 20,4 2,9 56,7 25,7
Totals -0,9 -3,4 2,5 6,9 -9,8 8,9 2,1 -0,1 -6,3 8,6 -5,2 8,1 -3,2
Key Ratios Q3
2017
Q2
2017
Q1
2017
Q4
2016
Q3
2016
Q2
2016
Q1
2016
Q4
2015
Q3
2015
Q2
2015
Q1
2015
FY
2016
FY
2015
Total order intake (MSEK) 55.5 49,3 40,2 41,9 28,2 30,4 13,0 26,7 23,0 16,3 22,1 113,5 88,1
Quarterly change (%) 13% 23% -4% 49% -7% 134% -51% 16% 41% -26% -10% n/a n/a
Change compared to same period last year (%) 97% 62% 209% 57% 23% 87% -41% 9% 30% 48% 51% 29% 29%
Total Revenues (MSEK) 33,2 32,2 25,8 27,3 22,5 15,6 17,3 20,5 15,4 15,1 15,2 82,7 66,2
Quarterly change (%) 3% 25% -5% 21% 44% -10% -16% 33% 2% -1% -18% n/a n/a
Change compared to same period last year (%) 48% 106% 49% 33% 46% 3% 14% 9% 47% 16% 37% 25% 24%
Gross Margin (percent of Revenues) 59% 59% 60% 57% 55% 54% 54% 51% 43% 59% 57% 57% 52%
EBIT-margin (percent of Revenues) -4% -13% -22% -16% -35% -62% -47% -29% -45% -41% -9% -37% -31%
Profit margin (percent of Revenues) -5% -13% -22% -17% -36% -64% -49% -29% -48% -40% -13% -38% -32%
Earnings per share before dilution (SEK) -0,1 -0,14 -0,20 -0,16 -0,29 -0,44 -0,39 -0,28 -0,33 -0,28 -0,09 -1,21 -0,99
Equity per share before dilution (SEK) 1,98 2,08 2,20 2,75 2,18 2,65 1,38 1,82 2,10 2,52 1,80 2,39 1,82
Equity per share after dilution (SEK) 1,87 1,97 2,07 2,59 2,05 2,49 1,29 1,70 1,96 2,36 1,70 2,26 1,70
Last paid share price (SEK) 33,9 22,60 14,80 12,10 10,90 9,10 8,60 15,10 15,60 15,80 15,20 12,10 15,10
Equity/asset ratio (percent) 53% 59% 60% 57% 55% 54% 54% 51% 43% 59% 57% 69% 54%
Cash Balance (MSEK) 17,9 9,1 2,4 12,7 5,7 11,0 6,7 4,4 4,6 10,9 2,4 12,7 4,4
Number of employees at end of period 47 46 48 46 46 41 41 41 39 32 28 46 41
Average number of outstanding shares (millions) 29,5 29,5 29,5 25,7 24,7 23,3 22,0 22,0 22,0 20,7 20,3 25,7 21,3
Average number of diluted shares (millions) 31,2 31,1 31,3 27,3 26,3 24,8 23,6 22,8 23,5 22,0 21,5 25,5 22,5
Number of outstanding shares at end of period (millions) 29,5 29,5 29,5 29,5 27,5 27,5 22,0 22,0 22,0 22,0 20,3 29,5 22,0
Number of outstanding warrants at end of period (millions 1,7 1,8 1,8 1,8 1,6 1,5 1,5 1,5 1,5 1,5 1,2 1,8 1,5

NOTES

Accounting principles

Oct-Dec This interim report is prepared, for the Group, in accordance with IAS 34, RFR1 "Redovisning för koncerner" and the Annual Accounts Act and, for the Parent company, the Annual Accounts Act and RFR 2.

There has been no significant changes to existing accounting policies or new applied acccounting principles in 2017 beside the changed accounting classifications that is bescribed here below, thus the applied accounting principles are in all other aspects consistent with what is stated in note 1 in the Financial Statements for 2016.

Changed accounting classifications and recalculated quarterly statements for C‐RAD

In order to achieve more simplicity and an improved correlation between the external reportig and the managements assessments of the business, C‐RAD has decided to change the reporting method for revenues and certain expenses.

Previously, Group revenues have been reported as revenues plus capitalized development costs and other revenue (primarily referring to exchange rate gains). To improve simplicity by reporting group revenue equalling group sales revenue, capitalized development costs is now reported as a correction item under operating expenses. Other revenue is also reported under operating expenses together with other operating expenses as "other operating income/expenses".

Gross profit and gross profit margin are significant concepts for C‐RAD's management. To highlight this, the term "gross profit" is now included in the group income statement. Gross profit equals revenues less raw materials and consumables, which was preciously reported under "Operating expenses".

These changes does not affect previously reported EBITDA, operating income, income before tax or net income, nor does it have any effect on the reported balance sheets or cash flow. C‐RAD has retrospectively recalculated the items affected by these changes, which can be found in the "Group review per quarter".

The new accounting classifications apply as of January 1st, 2017 and is included for the first time in the interim report for Januari ‐ September, 2017, with recalculated comparable figures.

Accounting principles

This interim report is prepared, for the Group, in accordance with IAS 34, RFR1 "Redovisning för koncerner" and the Annual Accounts Act and, for the Parent company, the Annual Accounts Act and RFR 2.

There has been no significant changes to existing accounting policies or new applied acccounting principles in 2017, thus the applied accounting principles are consistent with what is stated in note 1 in the Financial Statements for 2016.

C‐RAD has reviewed what impact IFRS 15, the new standard for revenue recognition, will have on the company's revenue reporting. The Company's assessment is that the application of the new standard will not imply any significant changes to the current revenue recognition for the Group. The new standard will be applied as of January 1st, 2018.

C‐RAD has reviewed what impact IFRS 9, the new standard for financial instruments, will have on the company's revenue reporting. The Group is currently not hedging interest or currency exposure meaning that this change will not imply any changes in the Group Accounting. The new standard must be applied for financial years beginning on or after January 1, 2018.

Updated IFRS standards and interpretations from IFRIC have no impact on the Group or the Parent Company's results or financial position.

Exchange rates

The financial statements are presented in SEK, the functional currency of C‐RAD. Sales and orders are largely generated in foreign currency, mainly EUR and USD and, in addition, foreign subsidiaries and associates are included in the consolidation. Orders, order back‐log and income statement are translated at the period‐average exchange rate while balance sheet items are translated at the closing rate. The average EUR rate during January ‐ September 2017 was 9.6 (9.4), while the average USD rate in the period was 8.6 (8.4). Closing rate for EUR was 9.6 (9.6) och USD 8.1 (8.6).

Related party transactions

C‐RAD has purchased printing material from Thurn Transmedia Com to an amount of 3 KSEK. The owner of Thurn Transmedia Com is related to the CEO of C‐RAD, Tim Thurn.

Capitalized development costs

Development expenses that fulfil the recognition criteria in IAS38 are capitalized. At least annually an impairment test is performed. The progress of current development projects is reviewed on a regular basis.

Deferred tax

Deferred tax assets are reviewed at the end of each reporting period and adjusted in line with the probable future taxable result.

Contingent liabilities

Contingent liability of SEK 2 000 000 in the Parent company refer to guarantee committment for subsidiary.

Pledges

The pledges refer to to a chattle mortgage for the Companys credit line with Nordea and Erik Penser Bank AB (security of 12.150.000 SEK) and a chattel mortgage with NUTEK (1,470,000 SEK).

Talk to a Data Expert

Have a question? We'll get back to you promptly.