Annual Report • Feb 16, 2012
Annual Report
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• The first complete version of RayStation® was released in January
" Financially, RayStation® started to contribute significant revenues in conjunction with its installation at several customers at the end of the year. From a revenue viewpoint, the fourth quarter was the best ever with SEK 45.8 M in revenues compared with SEK 34.8 M in the fourth quarter 2010", says Johan Löf, President of RaySearch.
" In 2011, we successfully implemented a strategic shift in which we went from complete dependence on partners to establishing opportunities to sell directly to clinics in parallel with our partner-based business model. We have noted strong interest for RayStation® and a large number of business discussions are ongoing in North America, Europe and Asia so we hope to finalize several important deals in 2012, ", concludes Johan Löf.
| AMOUNTS IN SEK 000S | JAN–DEC | OCT-DEC | ||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | |
| Net sales | 126,103 | 117,728 | 45,772 | 34,758 |
| Operating profit | 27,624 | 39,873 | 14,643 | 15,371 |
| Operating margin, % | 21.9 | 33.9 | 32.0 | 44.2 |
| Profit for the period | 17,007 | 28,895 | 6,793 | 11,354 |
| Earnings per share, SEK | 0.50 | 0.84 | 0.20 | 0.33 |
| Share price at period end, SEK | 14.45 | 38.0 |
The information in this year-end report is such that RaySearch must disclose publicly in accordance with the Swedish Securities and Clearing Operations Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication on February 16, 2012 at 7:45 a.m.
In 2011, we successfully implemented a strategic shift in which we went from complete dependence on partners to establishing opportunities to sell directly to clinics in parallel with our partner-based business model. We therefore devoted considerable energy to developing the RayStation® treatment planning system and we expanded our organization to include sales and service functions. We were able to install the first clinical version of RayStation® in June and, in September, the first patient was treated at Massachusetts General Hospital in the US with a plan generated with RayStation®. This was followed in December by the first European patient to receive treatment at RISO, the Radiotherapeutic Institute in Deventer, in the Netherlands. In late 2011, we finished the first complete version of RayStation® that can perform all the most common forms of radiation therapy. The system now includes everything from everyday tools for basic forms of radiation therapy to a number of unique, advanced tools, such as our market-leading solutions for multi-criteria optimization and adaptive radiation therapy. We have thus passed all of the key development milestones for RayStation® and have the most modern and advanced product on the market. I cannot overstress just how important this is for us and we have now entered an entirely new era for RaySearch.
The successful development work laid the groundwork for sales successes, in particular, in North America where our sales team has been operating since January. In the European market, sales efforts for RayStation® also commenced during the year. We established a service organization in Stockholm to support our European customers and our first European sales representative started in October, based in Belgium. In Southern Europe and Asia, we will initially use local distributors rather than setting up our own local organizations. In September, we signed our first distribution agreement with the Italian distributor Tecnologie Avanzate and in November we signed a distribution agreement with Oncology Total Solution (OTS) in South Korea and Kang Li Da in China. All three companies have extensive experience in our field, so I am confident that these partnerships will be successful. We will continue to expand our organization in Europe and the US and establish relations with more distributors in Asia and Southern Europe. In total, we secured nine new orders for RayStation® in 2011. We are involved in an increasing number of procurements and now offer a complete clinical product, so opportunities to substantially increase our customer base appear very favorable in 2012.
Financially, RayStation® started to contribute significant revenues in conjunction with its installation at several customers at the end of the year. From a revenue viewpoint, the fourth quarter was the best ever with SEK 45.8 M in revenues compared with SEK 34.8 M in the year-earlier period. Revenues for the full-year 2011 rose by 7.1 percent and totaled SEK 126.1 M (117.7), which was the highest ever full-year revenue for RaySearch and was achieved despite a relatively weak first half of the year and declining exchange rates. With unchanged exchange rates, revenues would have increased by another SEK 9.1 M corresponding to a revenue increase of 14.9 percent. Profit declined to SEK 17.0 M for 2011, from SEK 28.9 M in the year-earlier period. The decline in profit was due to costs incurred for the development, marketing and build-up of sales and service organizations for RayStation®, which exceeded initial sales revenues.
The total number of licenses installed via partners and direct sales amounted to 1,014 (1,093). The decline in the number of licenses was primarily due to a lower sales volume via Philips, which accounts for the majority of partner sales. During the first six months of the year, Philips experienced some problems with its sales organization in the US, which have now been resolved. In the fourth quarter, compensation was received from Philips as part of a settlement regarding systems delivered by Philips to its customers in earlier years, thus countering part of the negative impact from falling sales volumes.
Sales via Nucletron increased compared with the year-earlier period. Nucletron was acquired by the Swedish company Elekta during the period. It is unclear what long term effect the acquisition by Elekta will have on our collaboration with Nucletron.
Sales of the COMPASS® quality assurance system via IBA Dosimetry declined somewhat in 2011. We are currently focusing on adapting the system to a new detector, which has the potential to boost sales via IBA Dosimetry. The new version is scheduled for launch in 2012.
RaySearch's collaboration with Varian continues and revenues increased during 2011, albeit from a low level. Sales of the product from the collaboration with Accuray were essentially in line with the preceding periods.
RaySearch's collaboration with Siemens began generating revenues during the second quarter of 2011. Under the terms of the agreement with Siemens, RaySearch has provided a number of treatment planning modules for advanced radiation therapy. However, Siemens has announced that it is closing its radiation therapy division. At this point in time, it is difficult to say exactly what this will mean but irrespective of Siemens' actions, RaySearch is guaranteed revenues from this collaboration for several years.
Another challenge is the lawsuit brought in May by the US company Prowess, which claims that we have infringed on a US patent controlled by Prowess. We believe there is no infringement and in addition, that the patent should be invalidated since there are older publications describing the same concept. We have a strong defense and hope to win the case. The court procedure is progressing slowly and the parties have mainly discussed procedural issues in 2011. In January 2012, an arbitration conference was arranged by the court to see if the parties could settle already at an early stage. Since Prowess maintained its demands, which were wholly unacceptable to RaySearch, these proceedings came to no avail. Consequently, the process continues and it is still difficult to predict how long it will take to resolve the dispute and the cost this will entail for RaySearch. However, it is clear that we will have to bear relatively substantial legal costs in 2012 to be able to mount a proper defense.
If we look ahead to 2012, the year will be characterized by continued intense work on RayStation®. While it is already a fantastic product, there is much we wish to add and we will work with many proposals for improvements that stem from our customers' clinical experienced. In addition, we will continue to work with our partners and, in parallel, strengthen our organization, primarily in sales and marketing. However, we are proceeding cautiously and will build the infrastructure step by step with the goal of a positive profit contribution from the direct sales effort also in the short-term. In 2011we laid the foundations for a growing customer base. We have noted strong interest and a large number of business discussions are ongoing in North America, Europe and Asia so we hope to finalize a few several key deals in 2012.
Stockholm, February 16, 2012
Johan Löf President & CEO RaySearch Laboratories AB(publ)
In October, RaySearch received two new orders for its RayStation® treatment planning system from the Baptist Hospital of Miami in Florida and the University Hospital of Columbia and Cornell in New York. The Baptist Hospital of Miami will primarily use RayStation® as a treatment planning system for advanced treatments, such as IMRT. At the University Hospital of Columbia and Cornell, RayStation® will function as an advanced research platform for the hospital's department of radiation oncology, where it will be used to model advanced workflows in multicriteria optimization of IMRT, four-dimensional image registration and dose accumulation, as well as other cutting-edge technologies.
In November, RaySearch entered into an exclusive distribution agreement with the South Korean distributor Oncology Total Solution Co. (OTS), based in Seoul, South Korea, and with the Chinese distributor Kang Li Da Trading Corporation, based in Beijing, China. Under the agreement, OTS will be fully responsible for marketing, sales and service for RaySearch's proprietary treatment planning system RayStation® in the South Korean market and Kang Li Da in the Chinese market. South Korea is one of the largest radiation therapy markets in Asia with approximately 80 radiation therapy clinics and the technology level is generally high with a long tradition of utilizing more advanced techniques such as IMRT. RayStation® is pending regulatory clearance in South Korea and the process is expected to be finalized in 2012. China is one of the largest markets for radiation therapy equipment in the world with approximately 1,300 clinics. Since there is a strong focus on improving healthcare in China, the radiation therapy sector is growing very rapidly and the number of clinics is expected to increase to 2,000 in less than five years. RayStation® is pending regulatory clearance in China and the approval process is expected to take approximately a year and a half.
In December, the first European cancer patient was treated utilizing a treatment plan generated by RaySearch's treatment planning system RayStation®. The treatment was carried out at RISO, the Radiotherapeutic Institute in Deventer, the Netherlands. RISO is a public independent radiotherapeutic institute offering radiotherapy for multiple hospitals in the region.
In January RaySearch announced that version 2.5 of RaySearch's RayStation® treatment planning system has been released for clinical use in Europe and USA and is pending regulatory approval in Canada. The new version includes a wide range of new features and improvements. RayStation® 2.5 includes all of RaySearch's marketleading optimization algorithms for VMAT, IMRT and 3D-CRT alongside a comprehensive set of tools for traditional 3D-CRT planning. This means that the system can be used clinically for treatment planning of all various treatment modalities of photon therapy. Using advanced deformable registration algorithms, RayStation® 2.5 also allows the users to perform dose tracking. This offers the possibility to perform accurate dose accumulation of any delivered or planned dose to any patient geometry using any combination of image data sets. RayStation® is the first treatment planning system that lets the clinicians monitor the impact of a changing patient geometry as the treatment progresses, and seamlessly adjust the treatment in the same system. The dose tracking functionality is available for installation in Europe but is pending regulatory clearance in USA and Canada.
During the fourth quarter of 2011, sales rose 31.7 percent year-on-year and amounted to SEK 45.8 M (34.8). Operating profit declined during the quarter to SEK 14.6 M (15.4), corresponding to an operating margin of 32.0 percent (44.2). Profit after tax totaled SEK 6.8 M (11.4) during the quarter. The substantial increase in sales derived from higher license revenues from RayStation® and from RaySearch's partnerships with Philips, and Varian. In the fourth quarter, compensation was received from Philips as part of a settlement regarding systems delivered by Philips to its customers in earlier years, which countered the negative impact from Philips' falling sales volumes.
Total sales for full-year 2011 increased 7.1 percent year-on-year and amounted to SEK 126.1 M (117.7). Sales consist primarily of license revenues via partners and support revenues. The total number of licenses sold via partners and direct sales was 1,014 (1,093) and license revenues during 2011 totaled SEK 105.1 M (96.3). The increase in license revenues was attributable to a substantial rise in revenues from direct sales of RayStation® and higher revenues from RaySearch's partnerships with Nucletron, Varian, Accuray and Siemens. During the year, support revenues declined 2.1 percent to SEK 21.0 M (21.4) since the decrease in support revenues from older products was not fully offset by support revenues from new products.
The company is dependent on trends in USD and EUR exchange rates against the SEK, since invoicing is denominated in USD and EUR and the bulk of the costs are in SEK. During 2011, revenues in USD were recognized at an average exchange rate of SEK 6.55, compared with SEK 7.15 in 2010. During 2011, revenues in EUR were recognized at an average exchange rate of SEK 9.05, compared with SEK 9.33 in 2010. Accordingly, currency effects had a negative impact on sales. At unchanged exchange rates, sales would have increased 14.9 percent compared with 2010. A sensitivity analysis of currency exposure indicates that the impact of a change in the average USD exchange rate of ±10 percent on the operating profit in 2011 was ± SEK 10.5 M and that the corresponding effect of a change in the average EUR exchange rate of ±10 percent was ± SEK 2.1 M. The company pursues the currency policy established by the Board of Directors.
Operating profit in 2011 amounted to SEK 27.6 M (39.9), corresponding to an operating margin of 21.9 percent (33.9). Operating expenses, excluding exchange-rate gains and losses, increased SEK 22.3 M compared with the preceding year to SEK 98.2 M. Other operating revenues and other operating expenses refer to exchange-rate gains and losses, with the net of these for 2011 amounting to revenue of SEK 0.1 M (expense: 1.8). The increase in operating expenses was mainly due to higher costs for research and development, as well as increased costs for marketing and sales and service personnel as a result of RaySearch's focus on direct sales of RayStation®.
As of December 31, 2011, 68 (63) employees were engaged in research and development. Research and development costs include payroll costs, consulting fees, computer equipment and premises. Before capitalization and amortization of development costs, research and development costs totaled SEK 84.9 M (75.5). The increase was primarily due to higher costs for consultants and an increase in the number of employees engaged in research and development activities. During 2011, capitalized development costs amounted to SEK 61.5 M (49.5). Amortization of capitalized development costs in 2011 totaled SEK 34.2 M (27.5). After adjustments for capitalization and amortization of development costs, research and development costs amounted to SEK 57.6 M (53.5).
Amortization of intangible fixed assets amounted to SEK 34.4 M (27.6) in 2011 and depreciation of tangible fixed assets totaled SEK 0.7 M (0.4). Overall, amortization and depreciation during 2011 amounted to SEK 35.1 M (28.0). Amortization and depreciation primarily pertained to capitalized development costs.
Profit after tax for 2011 totaled SEK 17.0 M (28.9), corresponding to earnings per share of SEK 0.50 (0.84).
The majority of RaySearch's existing customers are in the US. It should be noted that the proportion of license revenues derived from North America declined during the year. License revenues in 2011 were distributed as follows: North America 36 percent (47), Asia 27 percent (22), Europe and the rest of the world 37 percent (31).
Cash flow from operating activities during 2011 declined to SEK 33.9 M (62.8), mainly due to weaker earnings. Cash flow from investing activities declined to a negative SEK 63.1 M (neg: 50.8) due to higher development expenditure.
Cash flow for the year was a negative SEK 46.2 M (neg: 5.0), including a dividend payment of SEK 17.0 M (17.0). As of December 31, 2011, cash and cash equivalents amounted to SEK 28.7 M, compared with SEK 75.0 M on December 31, 2010. As of December 31, 2011, current receivables totaled SEK 67.2 M, compared with SEK 39.9 M on December 31, 2010. These receivables primarily comprised accounts receivable that were exceptionally high at the turn of the year due to significant sales invoiced in the last quarter. RaySearch has no interest-bearing liabilities.
Fixed assets primarily comprised capitalized development costs. Investments in intangible fixed assets in 2011 amounted to SEK 60.5 M (49.7) and investments in tangible fixed assets to SEK 2.5 M (2.4).
At the end of the fourth quarter, the number of employees in RaySearch was 87 (69). The average number of employees during January to December 2011 was 78 (64).
Since the financial reporting of the Parent Company corresponds in all material respects to the financial reporting of the Group, the comments for the Group are also relevant to a great extent for the Parent Company. Capitalization of development costs is recognized in the Group, but not in the Parent Company. During the year, the tax allocation reserve was reversed, which had a positive impact of SEK 8.4 M on earnings in the Parent Company.
The Annual General Meeting will be held at Spårvagnshallarna Conference Centre, Birger Jarlsgatan 57 A, Stockholm, Sweden on May 30, 2012 at 6:00 p.m. The Annual Report for 2011 will be available at RaySearch's office at Sveavägen 25 in Stockholm approximately one month prior to the date of the Annual General Meeting.
As RaySearch is currently in a phase of rapid expansion that requires capital, the Board and President propose that the Annual General Meeting approve that no dividend will be paid for 2011. The previous year the dividend amounted to SEK 0.50 per share, or SEK 17.1 M.
| AMOUNTS IN SEK 000S | JAN–DEC | OCT-DEC | ||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | |
| Net sales | 126,103 | 117,728 | 45,772 | 34,758 |
| Cost of goods sold | -442 | -92 | -60 | -2 |
| Gross profit | 125,661 | 117,636 | 45,712 | 34,756 |
| Other operating income | 1,067 | 0 | 0 | 0 |
| Selling expenses | -19,215 | -4,687 | -8,204 | -1,186 |
| Administrative expenses | -21,369 | -17,756 | -6,793 | -4,016 |
| Research and development costs | -57,575 | -53,500 | -15,265 | -13,806 |
| Other operating expenses | -945 | -1,820 | -807 | -337 |
| Operating profit | 27,624 | 39,873 | 14,643 | 15,371 |
| Result from financial items | 1,078 | 249 | 190 | 234 |
| Profit before tax | 28,702 | 40,122 | 14,833 | 15,605 |
| Tax | -11,695 | -11,227 | -8,040 | -4,251 |
| Profit for the period1) | 17,007 | 28,895 | 6,793 | 11,354 |
| Earnings per share before dilution (SEK) Earnings per share after dilution |
0.50 | 0.84 | 0.20 | 0.33 |
| (SEK) | 0.50 | 0.84 | 0.20 | 0.33 |
| AMOUNTS IN SEK 000S | JAN–DEC | OCT-DEC | ||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | |
| Profit for the period | 17,007 | 28,895 | 6,793 | 11,354 |
| Translation differences for the period | -81 | - | 141 | - |
| Comprehensive income for the period1) | 16,926 | 28,895 | 6,934 | 11,354 |
1) 100 % attributable to shareholders in the Parent Company.
| AMOUNTS IN SEK 000S | DEC 31, 2011 | DEC 31, 2010 |
|---|---|---|
| ASSETS | ||
| Intangible fixed assets | 161,096 | 133,981 |
| Tangible fixed assets | 3,978 | 3,157 |
| Deferred tax assets | 0 | 3,842 |
| Total fixed assets | 165,074 | 140,980 |
| Current receivables | 67,220 | 39,930 |
| Cash and cash equivalents | 28,704 | 75,016 |
| Total current assets | 95,924 | 114,946 |
| TOTAL ASSETS | 260,998 | 255,926 |
| EQUITY AND LIABILITIES | ||
| Equity | 196,697 | 196,762 |
| Deferred tax liabilities | 46,372 | 41,767 |
| Other long-term liabilities | 642 | 642 |
| Accounts payable | 6,582 | 5,743 |
| Other current liabilities | 10,705 | 11,012 |
| TOTAL EQUITY AND LIABILITIES | 260,998 | 255,926 |
| Pledged assets | 5,000 | 5,000 |
| Contingent liabilities | None | None |
| AMOUNTS IN SEK 000S | JAN–DEC | OCT-DEC | ||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | |
| Profit before tax | 28,702 | 40,122 | 14,833 | 15,605 |
| Adjusted for non-cash items 1) | 35,153 | 28,044 | 9,556 | 7,582 |
| Taxes paid | -3,639 | -2,710 | -1,416 | -1,118 |
| Cash flow from operating activities before | ||||
| changes in working capital | 60,216 | 65,456 | 22,973 | 22,069 |
| Cash flow from changes in working capital | -26,364 | -2,671 | -21,540 | -8,256 |
| Cash flow from operating activities | 33,852 | 62,785 | 1,433 | 13,813 |
| Cash flow from investing activities2) | -63,092 | -50,791 | -16,886 | -16,023 |
| Cash flow from financing activities | -16,991 | -16,991 | 0 | 0 |
| Cash flow for the period | -46,231 | -4,997 | -15,453 | -2,210 |
| Cash and cash equivalents at the beginning of | ||||
| the period | 75,016 | 80,013 | 44,016 | 77,226 |
| Exchange rate difference in cash and cash equivalents |
-81 | 141 | ||
| Cash and cash equivalents at the end of the | ||||
| period | 28,704 | 75,016 | 28,704 | 75,016 |
1) These amounts include amortization of capitalized development costs. 2) These amounts include capitalized development costs.
| AMOUNTS IN SEK 000S | JAN–DEC | |
|---|---|---|
| 2011 | 2010 | |
| Opening balance | 196,762 | 184,858 |
| Profit for the period | 17,007 | 28,895 |
| Translation difference for the period | -81 | 0 |
| Dividend paid | -16,991 | -16,991 |
| Closing balance | 196,697 | 196,762 |
Dividend of SEK 0.50 per share paid out with a record day of May 30.
| JAN–DEC | |||
|---|---|---|---|
| 2011 | 2010 | ||
| Total number of shares (opening and closing balance) | 34,282,773 | 34,282,773 | |
| Holding of treasury shares, opening balance | 299,628 | 299,628 | |
| Holding of treasury shares, closing balance | 299,628 | 299,628 | |
| Average number of treasury shares | 299,628 | 299,628 |
| AMOUNTS IN SEK 000S | JAN-DEC | OCT-DEC | ||||
|---|---|---|---|---|---|---|
| 2011 | 2010 | 2009 | 2011 | 2010 | 2009 | |
| Net sales | 126,103 | 117,728 | 83,687 | 45,772 | 34,758 | 36,365 |
| Operating profit | 27,624 | 39,873 | 40,862 | 14,643 | 15,371 | 23,812 |
| Operating margin, % | 21.9 | 33.9 | 48.8 | 32.0 | 44.2 | 65.5 |
| Profit margin, % | 22.8 | 34.1 | 49.3 | 32.4 | 44.9 | 65.5 |
| Profit for the period | 17,007 | 28,895 | 30,146 | 6,793 | 11,354 | 17,526 |
| Earnings per share, SEK | 0.50 | 0.84 | 0.88 | 0.20 | 0.33 | 0.51 |
| Return on capital employed, % | 14.6 | 21.0 | 24.6 | |||
| Return on equity, % | 8.6 | 15.1 | 18.0 | |||
| Equity/assets ratio, % | 75.4 | 76.9 | 79.3 | |||
| Adjusted equity per share at the end of the | ||||||
| period, SEK | 5.74 | 5.74 | 5.39 | |||
| Share price at the end of the period, SEK | 14.45 | 38.0 | 29.5 | |||
| Dividend per share | 0 | 0.50 | 0.50 |
| AMOUNTS IN SEK 000S | JAN–DEC | OCT-DEC | ||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | |
| Net sales | 131,827 | 117,728 | 51,130 | 34,758 |
| Cost of goods sold | -442 | -92 | -60 | -2 |
| Gross profit | 131,385 | 117,636 | 51,070 | 34,756 |
| Other operating income | 1,067 | 0 | 0 | 0 |
| Selling expenses | -10,564 | -4,687 | -4,418 | -1,186 |
| Administrative expenses | -21,346 | -17,728 | -6,786 | -3,995 |
| Research and development costs | -84,886 | -75,482 | -22,682 | -22,363 |
| Other operating expenses | -945 | -1,820 | -807 | -337 |
| Operating profit | 14,711 | 17,919 | 16,377 | 6,835 |
| Result from financial items | 940 | 5,038 | 181 | 5,023 |
| Profit after financial items | 15,651 | 22,957 | 16,558 | 11,858 |
| Appropriations | 9,800 | -3,941 | 1,373 | -3,941 |
| Profit before tax | 25,451 | 19,016 | 17,931 | 7,917 |
| Tax | -7,077 | -4,374 | -6,450 | -967 |
| Profit for the period | 18,374 | 14,642 | 11,481 | 6,950 |
| AMOUNTS IN SEK 000S | JAN–DEC | OCT-DEC | ||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | |
| Profit for the period | 18,374 | 14,642 | 11,481 | 6,950 |
| Translation differences for the period | - | - | - | - |
| Comprehensive income for the period | 18,374 | 14,642 | 11,481 | 6,950 |
| AMOUNTS IN SEK 000S | DEC 31, 2011 | DEC 31, 2010 |
|---|---|---|
| ASSETS | ||
| Intangible fixed assets | 117 | 312 |
| Tangible fixed assets | 3,978 | 3,157 |
| Financial fixed assets | 11,420 | 2,160 |
| Deferred tax assets | 0 | 3,842 |
| Total fixed assets | 15,515 | 9,471 |
| Current receivables | 72,753 | 44,727 |
| Cash and cash equivalents | 25,399 | 67,610 |
| Total current assets | 98,152 | 112,337 |
| TOTAL ASSETS | 113,667 | 121,808 |
| EQUITY AND LIABILITIES | ||
| Equity | 81,193 | 79,960 |
| Untaxed reserves | 15,341 | 25,140 |
| Accounts payable | 6,497 | 5,743 |
| Other current liabilities | 10,636 | 10,965 |
| TOTAL EQUITY AND LIABILITIES | 113,667 | 121,808 |
| Pledged assets | 5,000 | 5,000 |
| Contingent liabilities | None | None |
This interim report in summary for the Group was prepared in accordance with IAS 34 Interim Financial Reporting and the applicable provisions of the Swedish Annual Accounts Act. The Parent Company's financial statements were prepared pursuant to Chapter 9 of the Swedish Annual Accounts Act, Interim Financial Reporting. The same accounting policies and basis of computation that were applied in the most recent Annual Report were used to prepare the Group and Parent Company accounts. New or revised IFRS standards during 2011 have not affected RaySearch during the period and no known changes are expected to affect RaySearch during 2012.
Since RaySearch has only one segment, no segment reporting was prepared.
RaySearch's financial policy governing the management of financial risks was established by the Board of Directors and represents a framework of guidelines and rules in the form of risk mandates and limits for financial activities. RaySearch is affected primarily by exchange-rate risk. All of RaySearch's net sales are denominated in USD and EUR. In accordance with the established financial policy, no currency hedging is employed. The financial policy is updated at least once annually.
As a result of its activities, RaySearch is exposed to various operational risks, including the following: dependence on key persons, competition and strategic partnerships. RaySearch currently has partnerships with Philips, Nucletron, IBA Dosimetry, Varian, Accuray and Siemens. RaySearch also has several research partnerships. If RaySearch were to lose one or more of these partners, this could have a major impact on the company's sales, profit and financial position. This risk decreases as the percentage of direct sales increases.
For more detailed information about RaySearch's financial risk management and operational risks, refer to page 72 of the 2010 Annual Report.
No transactions between RaySearch and related parties materially affected the company's position and earnings.
Preparation of the year-end report requires that company management makes estimates that affect the reported amounts of assets, liabilities, revenues and expenses. The actual outcome may deviate from these estimates. The critical sources of uncertainty in the estimates are the same as those in the most recent Annual Report.
This year-end report was subject to review by the company's auditor. The review report is presented on page 15.
Stockholm, February 16, 2012
Erik Hedlund Johan Löf
Chairman of the Board President and Board member
Carl Filip Bergendal Hans Wigzell Board member Board member
To the Board of RaySearch Laboratories AB Corporate Registration Number: 556322-6157
I have reviewed the enclosed year-end report for RaySearch Laboratories AB (publ) for 2011. The Board of Directors and the President are responsible for the preparation of this year-end report in accordance with IAS 34 and the Swedish Annual Accounts Act. My responsibility is to express a conclusion on the year-end report based on my review.
I have conducted my review in accordance with the Swedish standard for such reviews, (SÖG) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Company. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially more limited in scope than an audit conducted in accordance with ISA and generally accepted auditing standards in Sweden. The measures taken during a review do not enable me to obtain assurance that I would become aware of all significant matters that might be identified in an audit. Thus, the conclusion expressed on the basis of a review does not offer the same degree of assurance as a conclusion based on an audit.
Based on my review, nothing has come to my attention that causes me to believe that the enclosed interim report has not been prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act for the Group and the Swedish Annual Accounts Act for the Parent Company.
Stockholm, February 16, 2012
Anders Linér Authorized Public Accountant KPMG
Johan Löf, President Tel: +46 (0)8-545 061 30 [email protected]
RaySearch Laboratories AB (publ) Corporate Registration Number: 556322-6157 Sveavägen 25 SE- 111 34 Stockholm Sweden
| Interim report for the first quarter | May 23, 2012 |
|---|---|
| Annual General Meeting | May 30, 2012, 2, at 6:00 p.m. |
| The Annual General Meeting will be held at Spårvagnshallarna | |
| Conference Centre, Birger Jarlsgatan 57 A, Stockholm, Sweden | |
| Interim report for the first six months | August, 2012 |
ABOUT RAYSEARCH
RaySearch Laboratories is a medical technology company that develops advanced software solutions for improved radiation therapy of cancer. RaySearch's products are mainly sold through license agreements with leading partners such as Philips, Nucletron, IBA Dosimetry, Varian, Accuray and Siemens. To date, 15 products have been launched through partners and RaySearch's software is used at some 1,800 clinics in more than 30 countries. In addition, RaySearch offers the proprietary treatment planning system RayStation® directly to clinics. RaySearch was founded in 2000 as a spin-off from Karolinska Institutet in Stockholm and the company is listed in the Small Cap segment on NASDAQ OMX Stockholm
For more information about RaySearch, visit www.raysearchlabs.com.
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