Quarterly Report • Nov 18, 2021
Quarterly Report
Open in ViewerOpens in native device viewer
Johan Löf, CEO of RaySearch.
• The COVID-19 pandemic with temporary reorganizations in healthcare also had a negative impact on sales in the third quarter. RaySearch expects that the negative effects of the COVID-19 pandemic on the company's sales and earnings will continue for some months to come, mainly because orders may be delayed.
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | OCT 2020- | FULL-YEAR | ||
|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | SEP 2021 | 2020 | |
| Net sales | 136,419 | 119,130 | 453,100 | 491,777 | 612,935 | 651,612 |
| Operating profit/loss | -26,561 | -29,477 | -36,763 | 11,126 | -51,355 | -3,466 |
| Operating margin, % | -19.5 | -24.7 | -8.1 | 2.3 | -8.4 | -0.5 |
| Profit/loss for the period | -21,990 | -26,182 | -31,347 | 5,084 | -45,511 | -9,080 |
| Earnings/loss per share before/after dilution, SEK | -0.64 | -0.76 | -0.91 | 0.15 | -1.33 | -0.26 |
| Cash flow from operating activities | 47,356 | 78,486 | 209,765 | 280,003 | 265,851 | 331,508 |
| Cash flow for the period | -10,088 | 21,720 | -51,638 | 83,388 | -73,136 | 61,890 |
| Return on equity, % | -3.2 | -3.7 | -4.6 | 0.7 | -6.7 | -1.3 |
| Equity/assets ratio, %, at the end of the period | 56.7 | 57.0 | 56.7 | 57.0 | 56.7 | 54.0 |
| Share price at the end of the period, SEK | 61.5 | 87.7 | 61.5 | 87.6 | 61.5 | 82.7 |
1 For definitions of key ratios, see page 20.
The COVID-19 pandemic once again negatively impacted RaySearch's sales in the third quarter of 2021. Market conditions were particularly challenging in Europe and North America, while the market situation improved in Asia.
In the third quarter, order intake amounted to SEK 128 M (138), down 8 percent year-on-year. However, net sales rose 15 percent to SEK 136 M (119), the result of a 37-percent increase in license revenue and a 12-percent increase in support revenue, comprising 49 percent (51) of net sales.
Operating loss totaled SEK -27 M (-29), corresponding to an operating margin of -19 percent (-25).
Cash flow was SEK -10 M (22) in the third quarter, attributable to investments in our new head office.
ovIn line with the abating pandemic, we are gradually increasing our sales activities. For example, we participated in ESTRO in Madrid in August, as well as ASTRO in Chicago in October. Historically, these trade fairs have been very important for our sales. However, since physical sales activities have been restricted for so long, it may take time before the full sales effect is regained.
Since it is uncertain how long the pandemic will have a negative effect on RaySearch's revenue, we will also be further intensifying our focus on costs now. We are planning to adjust our operations in various ways to achieve substantial cost
savings. For example, our travel expenses will be significantly reduced compared with the pre-pandemic period by holding virtual meetings with customers and partners whenever this proves a viable alternative to physical meetings. In a normal year, RaySearch would participate in about 150 market events all over the world. Another key cost-cutting measure is to significantly reduce this participation and shift our focus to virtual marketing events instead. Until the effects of the pandemic subside, we will neither engage consultants nor recruit any new employees.
In the upcoming quarters, however, our operating expenses will increase slightly year-on-year, mainly because several product launches have led to an increase in depreciation. Overall, we expect that profitability will remain under pressure in the short term before sales return to normal and the cost savings take full effect.
The pandemic has posed serious challenges for RaySearch. Nonetheless, we have elected to continue our strategically important product expansion while continuing to develop our existing products.
At the end of 2020, we launched two new products – RayIntelligence and RayCommand. Both products are part of a significant diversification of our software portfolio. RayIntelligence is our platform for data-driven oncology and machine learning. The service is a cloud-based system for analysis, monitoring and continuous improvement of cancer treatment performance. This software-as-a-service (SaaS) is fully integrated with our RayStation treatment planning system and our RayCare oncology information system, enabling cancer centers to consolidate, structure and search data to personalize the treatments and improve patient outcomes. RayIntelligence is RaySearch's first system to be offered via annual subscription only, which means that customers pay for the software on a regular basis and don't need to make an upfront investment.
RayCommand is a treatment control system that offers uniform management and control of the main systems in a treatment room, i.e. the treatment device, treatment table, imaging system and patient positioning devices. In addition, RayCommand is a B2B-product that we out-license to manufacturers of radiation therapy machines, who then sell the system
to cancer centers as an integrated part of their machinery. One of our first customers for this system is MedAustron, which offers complete centers for ion beam radiation therapy. Early next year, RayCommand will be taken into clinical use for the first time, and this will take place at their center in Austria. This is a key milestone for RaySearch, particularly as the center also uses RayStation and RayCare, and this will be the first time that these three products are all taken into clinical use simultaneously.
In 2021, our development of RayStation and RayCare has continued unabated. One of the main new features in RayStation is that we introduced support for Accuray's CyberKnife device, and in September, we could announce that the first patient had been treated with a combination of both RayStation and CyberKnife. This was carried out by our customer CHUV in Switzerland. Since RayStation already supports TomoTherapy and Radixact, this means that RayStation now offers complete support for Accuray devices.
The focus for RayCare has been improved workflows and the integration of RayCare with various treatment devices. The biggest news in RayCare 5B, which is scheduled for release in December this year, is that users will be able to configure their workflows on their own, something that previously required assistance from RaySearch. That will make it easier for cancer centers to implement and adapt RayCare to their specific way of working and entail less work for RaySearch.
Another important area is the integration of RayCare with various treatment devices since this is one of the key features of an oncology information system. In October this year, a first patient was treated with Accuray's Radixact device combined with RayCare at La Clinique Générale-Beaulieu, part of the Swiss Medical Network group. This was also the first time that RayCare has been used for treatment with a photon beam linear accelerator.
Regarding the integration with Varian's TrueBeam®, the work with Varian has intensified during the fall. When Varian releases a new version of TrueBeam, validation tests are planned. RaySearch's primary clinical partner in this testing will be Iridium Network in Antwerp, Belgium. After successful validation, Iridium plans to connect RayCare to their TrueBeam systems and to transition to RayCare as their only oncology information system. This will pave the way for other clinics who are interested in RayCare and who have been waiting for interoperability with Varian's TrueBeam to be validated.
In the early stages of the pandemic, the World Health Organization (WHO) discovered that one-third of European countries had reported partial or widespread disruptions in cancer care. Some national surveys showed that as many as 10 percent or more of all new cancer cases have remained undetected over the past year. Cancer centers and their care teams will quite simply need all of the tools they can find in order to diagnose, treat and manage the inevitable wave of post-COVID cancer cases on a large scale, and as efficiently as possible.
Efficient use of resources in cancer care has long been a focus area for RaySearch. Our software enables, for example, faster and automated creation of a treatment plan for each patient, shorter treatment duration without compromising treatment quality, and more efficient scheduling of treatment devices and health professionals. In June this year, we initiated a partnership with CHUV, a Swiss center, to study the efficiencies and improvements that can be achieved with the clinical implementation of RayStation, RayCare and RayIntelligence. Our joint expectation is that we will achieve a significant improvement in the clinic's overall efficiency, as well as increasing the quality and safety of the center's radiation therapy.
It is gratifying to report that our business operations have not experienced any major problems in terms of our R&D or our delivery capacity during the pandemic. We have made it through this period due to a joint effort, and I would like to thank all our employees – especially for the flexibility, creativity and dedication they have shown when we have restructured our core business into new digital and virtual ways of working.
With our product portfolio, our stable customer base and a very strong team, we have every opportunity to succeed in both existing and new markets.
Stockholm, November 18, 2021
Johan Löf CEO and founder
RaySearch operates in a market with uneven order flows where large individual orders can have a substantial impact on revenue recognition between the quarters and, because the company has limited (less than 10 percent) variable costs for license revenue, operating profit is affected by an amount that is nearly as high. For this reason, a longer perspective than a few quarters should be taken.
In the third quarter of 2021, order intake declined 7.7 percent to SEK 127.9 M (138.5). License order intake declined 4.3 percent to SEK 46.2 M (48.3), while order intake for support declined 12.4 percent to SEK 69.1 M (78.9).
| Rolling 12 | Full-year | ||||||
|---|---|---|---|---|---|---|---|
| Order intake (amounts in SEK M) | Q3-21 | Q2-21 | Q1-21 | Q4-20 | Q3-20 | months | 2020 |
| Licenses | 46.2 | 55.6 | 78.0 | 109.7 | 48.3 | 289.6 | 378.0 |
| Hardware | 7.9 | 9.3 | 12.1 | 26.7 | 8.3 | 56.0 | 69.5 |
| Support (incl. warranty support) | 69.1 | 116.6 | 48.6 | 95.9 | 78.9 | 330.1 | 377.4 |
| Training and other | 4.7 | 8.2 | 6.5 | 6.8 | 3.0 | 26.1 | 29.9 |
| Total order intake | 127.9 | 189.8 | 145.1 | 239.1 | 138.5 | 701.9 | 854.8 |
| Order backlog (amounts in SEK M) | Q3-21 | Q2-21 | Q1-21 | Q4-20 | Q3-20 | ||
| Licenses | 105.3 | 115.0 | 129.6 | 127.0 | 112.6 | ||
| Hardware | 38.4 | 36.9 | 48.5 | 50.3 | 36.8 | ||
| Support (incl. warranty support) | 1,009.2 | 1,001.7 | 974.2 | 942.6 | 1,028.3 | ||
| Training and other | 59.5 | 59.9 | 54.8 | 49.4 | 50.8 | ||
| Total order backlog at the end of the period | 1,212.4 | 1,213.4 | 1,207.1 | 1,169.2 | 1,228.5 |
In the first nine months of 2021, order intake declined 24.8 percent to SEK 462.7 M (615.6). License order intake declined 33.0 percent to SEK 179.9 M (268.3), while order intake for support declined 16.8 percent to SEK 234.2 M (281.5). The change was largely due to the COVID-19 pandemic, which did not affect the company's operations until the second quarter of 2020.
At September 30, 2021, the total order backlog amounted to SEK 1,212.2 M (1,228.5), which is expected to generate revenue of approximately SEK 407 M over the next 12 months. The remaining amount in the order backlog mainly pertains to support obligations, which are primarily expected to generate revenue over a subsequent four-year period.
In the third quarter of 2021, net sales rose 14.5 percent to SEK 136.4 M (119.1). The change was attributable to higher license sales, which rose 37.4 percent to SEK 55.7 M (40.5), primarily due to the COVID-19 pandemic, which had a negative impact on revenue in the third quarter of the preceding year. The change in sales at unchanged currencies was 11.9 percent (- 13.7).
Support revenue rose 11.9 percent to SEK 67.3 M (60.2), accounting for 49 percent (51) of net sales in the third quarter. Hardware sales, which have a limited profit margin, declined 27.0 percent to SEK 7.1 M (9.7). Excluding hardware, sales rose 18.2 percent year-on-year.
| Revenue (amounts in SEK M) | Q3-21 | Q2-21 | Q1-21 | Q4-20 | Q3-20 | Rolling 12 months |
Full-year 2020 |
|---|---|---|---|---|---|---|---|
| License revenue | 55.7 | 63.4 | 82.6 | 81.1 | 40.5 | 282.7 | 340.8 |
| Hardware revenue | 7.1 | 19.8 | 15.4 | 10.2 | 9.7 | 52.5 | 48.0 |
| Support revenue | 67.3 | 67.5 | 61.9 | 63.9 | 60.2 | 260.6 | 243.9 |
| Training and other revenue | 6.4 | 3.9 | 2.1 | 4.6 | 8.8 | 17.0 | 18.9 |
| Net sales | 136.4 | 154.6 | 162.1 | 159.8 | 119.1 | 612.9 | 651.6 |
| Change in sales, corresp. period, % | 14.5 | -5.6 | -22.4 | -31.8 | -17.5 | -15.6 | -12.1 |
| Change in organic sales, corresp. period, % | 11.9 | 4.5 | -14.2 | -28.5 | -13.7 | -11.2 | -10.3 |
In the first nine months of 2021, net sales declined 7.9 percent to SEK 453.1 M (491.8). The change was attributable to lower license revenue, which declined 22.4 percent to SEK 201.6 M (259.7), a result of the COVID-19 pandemic and negative currency effects. The change in sales at unchanged currencies was -3.5 percent (-0.9).
During the first nine months of 2021, net sales had the following geographic distribution: North America, 36 percent (40); Asia, 25 percent (22); Europe and the rest of the world, 39 percent (38).
In the third quarter of 2021, operating loss totaled SEK - 26.6 M (-29.5), representing an operating margin of -19.5 percent (-24.7).
The earnings improvement was largely attributable to higher license revenue and positive currency translation effects.
In the third quarter, operating expenses rose 9.7 percent to SEK 163.0 M (148.6). The change was largely due to the increase in number of employees, and higher amortization expense.
In the third quarter, net exchange gains and losses amounted to SEK 3.5 M (-8.7), due to the fact that a large proportion of the Group's receivables are denominated in USD
and EUR, which strengthened against the SEK in the third quarter compared with the end of the second quarter. Adjusted for these currency translation effects, operating loss would have totaled SEK -30.1 M (-20.8) in the third quarter and operating expenses would have risen 19.0 percent (-17.9).
During the first nine months, operating loss totaled SEK -36.8 M (11.1), representing an operating margin of -8.1 percent (2.3). The weaker earnings were largely attributable to lower license revenue where, for example, the first quarter of 2020 was strong and unaffected by the pandemic.
Consolidated sales and earnings are impacted by USD/EUR to SEK exchange rates, since most sales are invoiced in USD and EUR, while most costs are denominated in SEK.
At unchanged exchange rates, the change in sales was 11.9 percent in the third quarter of 2021 compared with the yearearlier period. In addition, the Group's exchange gains on balance sheet items amounted to SEK 3.5 M (-8.7) in the third quarter. Currency effects therefore had a positive impact on net sales and operating profit in the third quarter 2021.
A sensitivity analysis of the Group'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 2.4 M in the third quarter of 2021, while a corresponding change in the EUR exchange rate would have impacted consolidated operating profit by approximately +/- SEK 1.6 M.
The Group follows the financial policy established by the Board, whereby exchange-rate fluctuations are not hedged.
RaySearch is a research and development-oriented company that makes significant investments in the development of software solutions for improved cancer treatment. At September 30, 2021, 217 employees (203) were engaged in R&D, corresponding to 51 percent (50) of the total number of employees.
| Capitalization of development costs | Q3-21 | Q2-21 | Q1-21 | Q4-20 | Q3-20 | Rolling 12 months |
Full-year 2020 |
|---|---|---|---|---|---|---|---|
| Research and development costs | 57.9 | 68.0 | 64.9 | 65.2 | 51.5 | 256.1 | 243.4 |
| Capitalization of development costs | -40.0 | -52.5 | -51.5 | -53.1 | -40.7 | -197.1 | -195.6 |
| Amortization of capitalized development costs | 43.2 | 40.1 | 39.2 | 36.8 | 36.3 | 159.4 | 137.2 |
| Research and development costs | 61.2 | 55.7 | 52.6 | 48.9 | 47.1 | 218.4 | 185.0 |
In 2021, RaySearch continued to invest in both existing products and future products. Overall, research and development costs rose 7.1 percent to SEK 190.9 M (178.2) in the first nine months of 2021, corresponding to 42 percent (36) of the Group's net sales.The increase was attributable to a higher number of employees in research and development.
Development costs of SEK 144.0 M (142.5) were capitalized, up 1.1 percent, corresponding to 75 percent (80) of total research and development costs.
Amortization of capitalized development costs rose 22.1 percent to SEK 122.6 M (100.4), and the increase was attributable to an expansion of development activities, and that amortization periods had commenced for all products, including RayCommand and RayIntelligence.
Research and development costs (after adjustments for capitalization and amortization of development costs) rose 24.5 percent to SEK 169.5 M (136.2).
In the third quarter of 2021, total amortization and depreciation increased 11.7 percent to SEK 62.2 M (55.7), of which amortization of intangible fixed assets accounted for SEK 43.3 M (36.3), mainly related to capitalized development costs. Depreciation of tangible fixed assets amounted to SEK 19.1 M (19.3).
Total amortization and depreciation during the first nine months amounted to SEK 180.3 M (157.7), of which amortization of intangible fixed assets amounted to SEK 122.8 M (100.6), mainly related to capitalized development costs. Depreciation of tangible fixed assets amounted to SEK 57.4 M (57.1).
In the third quarter of 2021, loss after tax totaled SEK -22.0 M (-26.2), representing loss per share of SEK -0.64 (-0.76) before and after dilution. Loss after tax during the first nine months of 2021 totaled SEK -31.3 M (profit: 5.1), bringing loss per share before and after dilution to SEK -0.91 (profit: 0.15).
Tax expense for the first nine months of the year amounted to SEK 8.4 M (-2.5), corresponding to an effective tax rate of 21.1 percent (32.8).
In the third quarter of 2021, cash flow from operating activities was SEK 47.4 M (78.5) and the change was largely attributable to a decrease in working capital, which mainly comprises various types of receivables from customers, such as accounts receivable and current and long-term unbilled customer receivables where payment plans have been drawn up. During the first nine months of the year, cash flow from operating activities was SEK 209.8 M (280.0).
At the end of the period, the company's total customer receivables amounted to 39 percent (35) of net sales over the past 12 months. Working capital amounted to 3 percent (9) of net sales over the past 12 months. The decline was attributable to increased payments from customers, including advance payments from customers.
During the third quarter, cash flow from investing activities was SEK -45.6 M (-45.4). Investments in intangible fixed assets amounted to SEK -40.0 M (-40.7) and consisted of capitalized development costs for the company's products – RayStation, RayCare, RayCommand and RayIntelligence. Investments in tangible fixed assets amounted to SEK -5.6 M (-4.7), mainly related to investments in a new head office in Stockholm.
Cash flow from financing activities was SEK -11.9 M (-11.4) during the third quarter of 2021 and SEK -84.7 M (-35.1) during the first nine months. The change was largely due to a repayment of SEK 50 M on the company's credit facility in the second quarter.
Cash flow for the period was SEK -10.1 M (21.7) for the third quarter and SEK -51.6 M (83.4) for the nine first months. At September 30, consolidated cash and cash equivalents amounted to SEK 120.6 M (194.1).
At September 30, 2021, RaySearch's total assets amounted to SEK 1,172 M (1,244) and the equity/assets ratio was 56.7 percent (57.0).
Current receivables amounted to SEK 339 M (340). The receivables mainly comprise various types of customer receivables.
RaySearch's credit facilities comprise a revolving loan facility of up to SEK 300 M and an overdraft facility of SEK 50 M, both maturing in May 2022. RaySearch intends to refinance its existing credit facilities. Chattel mortgages amounted to SEK 100 M. At September 30, 2021, short-term loans totaling SEK 0 M (50) had been raised under the company's revolving loan facility and SEK 0 M (0) of the credit facility had been drawn.
At September 30, 2021, consolidated net cash amounted to SEK 53.0 M (31.5). The change was largely due to a repayment of SEK 50 M on the company's credit facility in the second quarter.
During the January-September period of 2021, the average number of employees in the Group was 418 (392). At the end of the third quarter, the Group had 428 (403) employees, of whom 319 (300) were based in Sweden and 109 (103) in foreign subsidiaries.
RaySearch Laboratories AB (publ) is the Parent Company of the RaySearch Group. Since the Parent Company's operations are consistent with the Group's operations in all material respects, the comments for the Group are also largely relevant for the Parent Company.
Differences in profitability between the Parent Company and the Group are attributable to the Parent Company accounting for a relatively high proportion of operating expenses, and to the capitalization of development costs being recognized in the Group but not in the Parent Company. The Parent Company was also not affected by the changes pertaining to lease recognition under IFRS 16, and instead continues to recognize lease payments as operating lease payments. This reduces operating profit compared with if IFRS 16 had been applied.
The Parent Company's current receivables mainly comprise receivables from Group companies and external customers.
The RayStation® treatment planning system was sold to more leading cancer centers, including National Cancer Centre Singapore (NCCS), Centro de Tratamiento e Investigación sobre cáncer Luis Carlos Sarmiento Angulo (CTIC) in Colombia, and Queen Elizabeth Hospital (QEH) in Hong Kong. In addition, Iridium Network in Belgium expanded its existing RayStation installation.
In September, Iridium Network in Belgium, one of RaySearch's development partners for RayCare, decided to invest in RayCare as its primary oncology information system.
In September, RayStation was taken into clinical use together with Accuray's CyberKnife therapy device at Centre hospitalier universitaire vaudois (CHUV) in Switzerland.
In September, RaySearch's CFO Peter Thysell resigned to take up a CFO position with another company.
In October, RaySearch and IBA expanded their existing collaboration around proton therapy in the areas of FLASH radiotherapy, proton arc therapy and the treatment of tumors in motion.
In October, RaySearch and Mevion Medical Systems expanded their existing collaboration on the development of treatment planning methods for FLASH radiotherapy with the Mevion S250i Proton Therapy System.
When access is granted to the new head office premises in the fourth quarter of 2021, total consolidated assets are expected to increase approximately SEK 466 M in accordance with IFRS 16.
Torbjörn Wingårdh was appointed new CFO of RaySearch as of November 15, 2021.
The COVID-19 pandemic is affecting people and companies all over the world and posing a challenge for all businesses. RaySearch is monitoring the situation and the effects of the pandemic closely and is prepared to take action and align the company's operations if needed.
Sales. The ongoing COVID-19 pandemic also had a negative impact on RaySearch's sales in the third quarter due to continued restrictions and rising case numbers, mainly the Delta variant in several countries. As a result, many hospitals were forced to temporarily re-prioritize and freeze investments in order to handle the COVID-19 pandemic. Market conditions were particularly challenging in North America and some European countries, while the company noted a normalization in Asia.
Delivery capacity. As a software company, RaySearch is well equipped for remote collaboration and both our R&D and delivery capacity have remained relatively unscathed by the COVID-19 pandemic to date.
COVID-19 did not have any major impact on the company's assessment items in the third quarter.
It is still difficult to say how the ongoing pandemic will affect the coming quarters with any great certainty. The situation has stabilized and is beginning to normalize in many countries, but many countries have also registered an increase in new cases, mainly the Delta variant.
In addition, as soon as the vaccination program takes effect, we expect sales to normalize again since underlying need and demand for effective software solutions for cancer care remain unchanged compared with pre-pandemic levels. Since sales activities have been restricted for some time, however, it may take time before the full sales effect is regained. We see no major challenges in terms of R&D or the company's delivery capacity.
Overall, the company expects that the negative effects of the COVID-19 pandemic on the company's sales and earnings will continue for some months to come. However, due to uncertainty surrounding how long the COVID-19 pandemic will last and the extent of the economic impacts, RaySearch will continue to focus on protecting the company's cash flow and liquidity.
Major unmet need for RaySearch's software solutions unchanged.The underlying need for effective software solutions for cancer care remains unchanged since treatment for cancer patients is a high priority. The company's assessment is that the market and demand for the company's products will normalize and return to previous levels when the COVID-19 pandemic has subsided.
Continued focus on efficiencies and digitization. One effect of the COVID-19 pandemic could be a further acceleration of the ongoing digital transformation. The pandemic has drastically highlighted the major potential and benefits of digital technology, which could be positive for RaySearch's operations in the long term because the company's software solutions enable cancer centers to improve their efficiency.
At September 30, 2021, the total number of registered shares in RaySearch was 34,282,773, of which 8,454,975 were Class A and 25,827,798 Class B shares. The quotient value was SEK 0.50 and the company's share capital amounted 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 September 30, 2021, the total number of voting rights in RaySearch was 110,377,548.
At September 30, 2021, the number of shareholders in RaySearch was 6,674 according to Euroclear, and the largest shareholders were as follows:
| Share | |||||
|---|---|---|---|---|---|
| Class A | Class B | capital, | |||
| Name | shares | shares | Total shares | % | Votes, % |
| Johan Löf | 6,243,084 | 418,393 | 6,661,477 | 19.4 | 56.9 |
| Invesco fonder | 0 | 4,000,000 | 4,000,000 | 11.7 | 3.6 |
| La Financière de l'Echiquier | 0 | 2,254,273 | 2,254,273 | 6.6 | 2.0 |
| First AP Fund | 0 | 1,982,448 | 1,982,448 | 5.8 | 1.8 |
| Swedbank Robur Funds | 0 | 1,800,000 | 1,800,000 | 5.3 | 1.6 |
| Anders Brahme | 1,150,161 | 200,000 | 1,350,161 | 3.9 | 10.6 |
| Second AP Fund | 0 | 1,220,942 | 1,220,942 | 3.6 | 1.1 |
| Carl Filip Bergendal | 1,061,577 | 139,920 | 1,201,497 | 3.5 | 9.7 |
| Nordnet Pension | 0 | 1,015,162 | 1,015,162 | 3.0 | 0.9 |
| C WorldWide Asset Management | 0 | 851,612 | 851,612 | 2.5 | 0.8 |
| Total, 10 largest shareholders | 8,454,822 | 13,882,750 | 22,337,572 | 65.2 | 89.2 |
| Others | 153 | 11,945,048 | 11,945,201 | 34.8 | 10.8 |
| Total | 8,454,975 | 25,827,798 | 34,282,773 | 100.0 | 100.0 |
Source: Euroclear, FI and MorningStar.
The Annual General Meeting (AGM) of RaySearch Laboratories AB (publ) will be held on Wednesday, May 25, 2022 at 6:00 p.m. at the company's head office premises at Eugeniavägen 18, Stockholm, Sweden. Shareholders wishing to have a matter addressed at the AGM must submit a written request thereof to the Board of Directors. The request should normally be received by the Board of Directors at least seven (7) weeks before the AGM is due to take place.
As a global Group with operations in different parts of the world, RaySearch is exposed to various risks and uncertainties, such as market risk, operational and legal risk, as well as financial risk pertaining to exchange-rate fluctuations, interest rates, liquidity and financing opportunities. RaySearch's risk management aims to identify, measure and reduce risks related to the Group's transactions and operations. For more information about risks and risk management, refer to pages 9-11 and 39-40 of RaySearch's 2020 Annual Report. There have been no significant changes with any impact on the risks reported. This also applies to the risks and uncertainties arising from the COVID-19 pandemic that could affect RaySearch's sales, earnings and financial position.
RaySearch's customers are healthcare providers and the company's operations are somewhat characterized by seasonal variations that are typical for the industry, whereby the fourth quarter is normally the strongest – mainly because many customers have budgets that follow the calendar year.
Sustainability is a key aspect of RaySearch's strategy and operations, and the company is working actively to become a sustainable enterprise. The primary aim of RaySearch's operations is to help cancer centers improve and save the lives of cancer patients. With our innovative software solutions, we are continuously striving to improve and streamline workflows in clinical environments and to improve treatment outcomes for cancer patients. The customer value we create presents business opportunities for RaySearch, but also major social benefit and economic gains.
The negative environmental impact of the company's products is limited. The company's environmental impact is mainly related to the purchase of goods and services, energy use and transportation. RaySearch aims to contribute to sustainable development and therefore works actively to improve the company's environmental performance wherever this is economically viable. More information about the company's environmental and sustainability initiatives is available in the company's Sustainability Report on pages 62-68 of RaySearch's 2020 Annual Report.
The Board of Directors and CEO give their assurance that this interim report gives a true and fair view of the Group's and the Parent Company's operations, position and earnings, and describes the significant risks and uncertainties facing the Parent Company and the companies included in the Group.
Stockholm, November 18, 2021 The Board of Directors of RaySearch Laboratories AB (publ)
Lars Wollung Chairman of the Board Johan Löf CEO and Board member Carl Filip Bergendal Board member
Britta Wallgren Board member Hans Wigzell Board member Johanna Öberg Board member
We have performed a review of the interim financial information (interim report) for RaySearch Laboratories AB (publ) at September 30, 2021 and for the nine-month period that ended on that date. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express an opinion on this interim report based on our review.
We have conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Information 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 audit and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards.
The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the opinion expressed on the basis of a review does not give the same assurance as an opinion expressed on the basis of an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act for the Group, and in accordance with the Swedish Annual Accounts Act for the Parent Company.
Stockholm, November 18, 2021
Ernst & Young AB
Anna Svanberg Authorized Public Accountant
Johan Löf, CEO Tel: +46 (0)8 510 530 00 E-mail: [email protected] Peter Thysell, CFO Tel: +46 (0)70 661 05 59 E-mail: [email protected]
The information contained in this interim report is such that RaySearch Laboratories AB (publ) is obliged to disclose under the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication on November 18, 2021 at 7:45 a.m. CET.
CEO Johan Löf and CFO Peter Thysell will present RaySearch's interim report for January-September 2021 at a teleconference to be held in English on Thursday, November 18, 2021 at 10:00-10:30 a.m. CET.
For login details to the teleconference, please register on: http://emea.directeventreg.com/registration/5435207
| February 23, 2022 |
|---|
| April 29, 2022 |
| May 18, 2022 |
| May 25, 2022 |
| August 25, 2022 |
| November 17, 2022 |
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | OCT 2020- FULL-YEAR | |||
|---|---|---|---|---|---|---|
| Note | 2021 | 2020 | 2021 | 2020 | -SEP 2021 | 2020 |
| Net sales 2.3 |
136,419 | 119,130 | 453,100 | 491,777 | 612,935 | 651,612 |
| Cost of goods sold1 | -6,448 | -8,088 | -39,464 | -33,820 | -49,018 | -43,374 |
| Gross profit | 129,971 | 111,042 | 413,636 | 457,957 | 563,917 | 608,238 |
| Other operating income | 6,684 | 2,228 | 27,187 | 6,383 | 39,087 | 18,283 |
| Selling expenses | -71,726 | -62,551 | -204,559 | -217,590 | -278,198 | -291,229 |
| Administrative expenses | -27,131 | -22,207 | -85,208 | -79,500 | -111,998 | -106,290 |
| Research and development costs | -61,189 | -47,085 | -169,522 | -136,173 | -218,390 | -185,041 |
| Other operating expenses | -3,170 | -10,904 | -18,297 | -19,951 | -45,773 | -47,427 |
| Operating profit/loss | -26,561 | -29,477 | -36,763 | 11,126 | -51,355 | -3,466 |
| Loss from financial items | -878 | -1,177 | -2,962 | -3,561 | -2,413 | -3,012 |
| Profit/loss before tax | -27,439 | -30,654 | -39,725 | 7,565 | -53,768 | -6,478 |
| Tax | 5,449 | 4,472 | 8,378 | -2,481 | 8,257 | -2,602 |
| Profit/loss for the period2 | -21,990 | -26,182 | -31,347 | 5,084 | -45,511 | -9,080 |
| Other comprehensive income | ||||||
| Items to be reclassified to profit or loss | ||||||
| Translation difference of foreign operations for the period | 712 | -368 | 1,390 | -687 | 39 | -2,037 |
| Comprehensive income for the period2 | -21,278 | -26,550 | -29,957 | 4,397 | -45,472 | -11,118 |
| Earnings/loss per share before and after dilution (SEK) | -0.64 | -0.76 | -0.91 | 0.15 | -1.33 | -0.26 |
1 Comprises costs for hardware and license costs paid, but not amortization of capitalized development costs, which is included in research and development costs. 2 Fully (100 percent) attributable to Parent Company shareholders.
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | FULL YEAR |
||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | 2020 | |
| Opening balance | 685,672 | 736,415 | 694,351 | 705,468 | 705,468 |
| Profit/loss for the period | -21,990 | -26,182 | -31,347 | 5,084 | -9,080 |
| Other comprehensive income for the period | 712 | -368 | 1,390 | -687 | -2,037 |
| Closing balance | 664,394 | 709,865 | 664,394 | 709,865 | 694,351 |
| AMOUNTS IN SEK 000s Note |
Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 |
|---|---|---|---|
| ASSETS | |||
| Intangible fixed assets | 508,025 | 470,590 | 486,817 |
| Tangible fixed assets | 175,217 | 207,540 | 186,768 |
| Deferred tax assets | 21,076 | 21,224 | 7,226 |
| Other long-term receivables | 8,263 | 10,980 | 26,928 |
| Total fixed assets | 712,581 | 710,334 | 707,739 |
| Inventories | 21,295 | 13,760 | 9,110 |
| Current receivables | 317,586 | 326,229 | 399,309 |
| Cash and cash equivalents | 120,589 | 194,140 | 168,746 |
| Total current assets | 459,470 | 534,129 | 577,165 |
| TOTAL ASSETS | 1,172,051 | 1,244,463 | 1,284,904 |
| EQUITY AND LIABILITIES | |||
| Equity | 664,394 | 709,865 | 694,351 |
| Deferred tax liabilities | 111,849 | 123,573 | 108,749 |
| Long-term interest-bearing liabilities | 50,380 | 66,013 | 53,788 |
| Total long-term liabilities | 162,229 | 189,586 | 162,537 |
| Accounts payable | 30,076 | 11,128 | 19,864 |
| Current interest-bearing liabilities | 17,226 | 96,651 | 92,519 |
| Other current liabilities | 298,126 | 237,233 | 315,633 |
| Total current liabilities | 345,428 | 345,012 | 428,016 |
| TOTAL EQUITY AND LIABILITIES | 1,172,051 | 1,244,463 | 1,284,904 |
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | OCT 2020 | FULL-YEAR | ||
|---|---|---|---|---|---|---|
| Note | 2021 | 2020 | 2021 | 2020 | -SEP 2021 | 2020 |
| Profit/loss before tax | -27,439 | -30,654 | -39,725 | 7,565 | -53,768 | -6,478 |
| Adjusted for non-cash items1) | 57,528 | 63,267 | 162,827 | 165,658 | 231,392 | 234,223 |
| Taxes paid | 682 | -8,176 | -9,829 | -21,151 | -16,890 | -28,212 |
| Cash flow from operating activities before changes in working capital |
30,771 | 24,437 | 113,273 | 152,072 | 160,734 | 199,533 |
| Cash flow from changes in operating receivables | 12,102 | 71,485 | 130,889 | 141,095 | 41,946 | 52,152 |
| Cash flow from changes in operating liabilities | 4,483 | -17,436 | -34.397 | -13,164 | 63,171 | 79,823 |
| Cash flow from operating activities | 47.356 | 78,486 | 209.765 | 280,003 | 265,851 | 331,508 |
| Cash flow from investing activities | -45.569 | -45,372 | -176.687 | -161,499 | -245,362 | -225,593 |
| Cash flow from financing activities | -11,875 | -11,394 | -84,716 | -35,116 | -93,625 | -44,025 |
| Cash flow for the period | -10,088 | 21,720 | -51,638 | 83,388 | -73,136 | 61,890 |
| Cash and cash equivalents at the beginning of the period | 128,815 | 173,728 | 168,746 | 113,858 | 194,140 | 113,858 |
| Exchange-rate difference in cash and cash equivalents | 1,862 | -1,308 | 3,481 | -3,106 | -415 | -7,002 |
| Cash and cash equivalents at the end of the period | 120,589 | 194,140 | 120,589 | 194,140 | 120,589 | 168,746 |
1 These amounts mainly include amortization of capitalized development costs, right-of-use assets and unrealized currency effects.
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | FULL-YEAR | ||
|---|---|---|---|---|---|
| Note | 2021 | 2020 | 2021 | 2020 | 2020 |
| Net sales | 99,038 | 81,281 | 331,943 | 363,388 | 489,623 |
| Cost of goods sold1) | -2,144 | -3,928 | -15,293 | -19,649 | -24,095 |
| Gross profit | 96,894 | 77,353 | 316,650 | 343,739 | 465,528 |
| Other operating income | 6,467 | -4,724 | 26,706 | -1,844 | 9,163 |
| Selling expenses | -43,247 | -36,679 | -121,250 | -123,887 | -167,012 |
| Administrative expenses | -27,216 | -22,258 | -85,387 | -79,854 | -106,702 |
| Research and development costs | -58,096 | -51,613 | -191,345 | -178,648 | -243,950 |
| Other operating expenses | -2,712 | -4,212 | -17,455 | -11,600 | -38,713 |
| Operating loss | -27,910 | -42,133 | -72,081 | -52,094 | -81,686 |
| Profit/loss from financial items | -311 | 3 | -1,082 | 394 | 17 |
| Loss after financial items | -28,221 | -42,130 | -73,163 | -51,700 | -81,669 |
| Appropriations | - | - | - | - | 82,306 |
| Profit/loss before tax | -28,221 | -42,130 | -73,163 | -51,700 | 637 |
| Tax on profit for the period | 5,600 | 6,077 | 14,343 | 8,290 | -4,136 |
| Loss for the period | -22,621 | -36,053 | -58,820 | -43,410 | -3,499 |
1 Comprises costs for hardware and royalties but not amortization of capitalized development costs, which is included in research and development costs.
| AMOUNTS IN SEK 000s | JUL-SEP | JAN-SEP | FULL-YEAR | ||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | 2020 | |
| Loss for the period | -22,621 | -36,053 | -58,820 | -43,410 | -3,499 |
| Other comprehensive income | - | - | - | - | - |
| Comprehensive income for the period | -22,621 | -36,053 | -58,820 | -43,410 | -3,499 |
| AMOUNTS IN SEK 000s Note |
Sept 30, 2021 | Sept 30, 2020 | Dec 31, 2020 |
|---|---|---|---|
| ASSETS | |||
| Intangible fixed assets | 634 | 867 | 808 |
| Tangible fixed assets | 65,022 | 40,408 | 43,863 |
| Shares and participations | 3,958 | 1,911 | 1,911 |
| Deferred tax assets | 20,924 | 17,066 | 5,879 |
| Long-term receivables from Group companies | 18,252 | 39,820 | 25,426 |
| Other long-term receivables | 7,583 | 7,876 | 9,411 |
| Total fixed assets | 116,373 | 107,948 | 87,298 |
| Inventories | 917 | 439 | 176 |
| Current receivables | 284,584 | 352,823 | 356,270 |
| Cash and bank balances | 43,741 | 102,083 | 107,711 |
| Total current assets | 329,242 | 455,345 | 464,157 |
| TOTAL ASSETS | 445,615 | 563,293 | 551,455 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Restricted equity | |||
| Share capital | 17,141 | 17,141 | 17,141 |
| Statutory reserve | 43,630 | 43,630 | 43,630 |
| Total restricted equity | 60,771 | 60,771 | 60,771 |
| Unrestricted equity | |||
| Retained earnings | 202,699 | 206,198 | 206,198 |
| Loss for the year | -58,820 | -43,410 | -3,499 |
| Total non-restricted equity | 143,879 | 162,788 | 202,699 |
| Total equity | 204,650 | 223,559 | 263,470 |
| Untaxed reserves | 32,615 | 114,921 | 32,615 |
| Long-term liabilities | 879 | - | 879 |
| Accounts payable1) | 35,138 | 14,851 | 30,156 |
| Current interest-bearing liabilities | 0 | 49,762 | 49,649 |
| Other current liabilities1) | 172,333 | 160,200 | 174,686 |
| Total current liabilities | 207,471 | 224,813 | 254,491 |
| TOTAL EQUITY AND LIABILITIES | 445,615 | 563,293 | 551,455 |
1 Comparative figures have been reclassified from other current liabilities to accounts payable with regard to intra-group accounts payable; 6.5 MSEK for Sept 30, 2020 and 11.1 MSEK for Dec 31, 2020.
The RaySearch Group applies International Financial Reporting Standards (IFRS) as adopted by the EU. The accounting policies applied are consistent with those described in the 2020 Annual Report for RaySearch Laboratories AB (publ), which is available at www.raysearchlabs.com This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act.
RaySearch Laboratories AB (publ) is the Parent Company of the RaySearch Group. The Parent Company applies the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. The Parent Company's operations are consistent with the Group's operations in all material respects.
Differences in profitability between the Parent Company and the Group are attributable to the Parent Company accounting for a relatively high proportion of operating expenses, and to the capitalization of development costs being recognized in the Group but not in the Parent Company. The Parent Company was also not affected by IFRS 16, and will continue to recognize lease payments on a straight-line basis over the lease term. This reduces operating profit compared with if IFRS 16 had been applied.
The Parent Company's current receivables mainly comprise receivables from Group companies and external customers.
RaySearch conducts sales of goods and services in various regions. Revenue from sales of licenses and hardware is recognized in profit or loss at a point in time, while revenue from sales of training and support is recognized over time.
| AMOUNTS IN SEK 000s | JUL-SEP | ||||
|---|---|---|---|---|---|
| 2021 | 2020 | Change | OCT 2020- SEP 2021 |
Full-year 2020 |
|
| Revenue by type | |||||
| Licenses | 55,676 | 40,510 | 37.4% | 282,713 | 340,802 |
| Support | 67,322 | 60,164 | 11.9% | 260,641 | 243,913 |
| Hardware | 7,066 | 9,685 | -27.0% | 52,533 | 48,026 |
| Training and other | 6,355 | 8,771 | -27.5% | 17,048 | 18,871 |
| Total revenue from contracts with customers | 136,419 | 119,130 | 14.5% | 612,935 | 651,612 |
| Revenue by geographic market | |||||
| North America | 44,841 | 39,692 | 13.0% | 207,010 | 241,476 |
| APAC | 37,692 | 33,349 | 13.0% | 164,625 | 162,078 |
| Europe and rest of the world | 53,886 | 46,089 | 16.9% | 241,300 | 248,058 |
| Total revenue from contracts with customers | 136,419 | 119,130 | 14.5% | 612,935 | 651,612 |
| Revenue by date for revenue recognition | |||||
| Goods/services transferred at a point in time | 62,742 | 50,195 | 25.0% | 335,246 | 388,828 |
| Services transferred over time | 73,677 | 68,935 | 6.9% | 277,689 | 262,784 |
| Total revenue from contracts with customers | 136,419 | 119,130 | 14.5% | 612,935 | 651,612 |
| AMOUNTS IN SEK 000s | JAN–SEP | ||||
|---|---|---|---|---|---|
| 2021 | 2020 Change | OCT 2020- SEP 2021 |
Full-year 2020 |
||
| Revenue by type | |||||
| Licenses | 201,635 | 259,724 | -22.4% | 282,713 | 340,802 |
| Support | 196,744 | 180,016 | 9.3% | 260,641 | 243,913 |
| Hardware | 42,301 | 37,794 | 11.9% | 52,533 | 48,026 |
| Training and other | 12,420 | 14,243 | -12.8% | 17,048 | 18,871 |
| Total revenue from contracts with customers | 453,100 | 491,777 | -7.9% | 612,935 | 651,612 |
| Revenue by geographic market | |||||
| North America | 163,931 | 198,397 | -17.4% | 207,010 | 241,476 |
| APAC | 110,832 | 108,285 | 2.4% | 164,625 | 162,078 |
| Europe and rest of the world | 178,337 | 185,095 | -3.7% | 241,300 | 248,058 |
| Total revenue from contracts with customers | 453,100 | 491,777 | -7.9% | 612,935 | 651,612 |
| Revenue by date for revenue recognition | |||||
| Goods/services transferred at a point in time | 243,936 | 297,518 | -18.0% | 335,246 | 388,828 |
| Services transferred over time | 209,164 | 194,259 | 7.7% | 277,689 | 262,784 |
| Total revenue from contracts with customers | 453,100 | 491,777 | -7.9% | 612,935 | 651,612 |
Preparation of the interim report requires that company management make estimates that affect the carrying amounts. The actual outcome could deviate from these estimates. The critical sources of uncertainty in the estimates are the same as those in the most recent Annual Report.
RaySearch's financial assets and liabilities comprise billed and unbilled receivables, cash and cash equivalents, accrued expenses, accounts payable, bank loans and lease liabilities. Long-term receivables and lease liabilities are discounted, while other financial assets and liabilities have short maturities. Accordingly, the fair values of all financial instruments are deemed to correspond approximately to their carrying amounts.
The provision for expected credit losses is a weighted assessment of payment history, reports from external credit rating agencies and other customer-specific information. At the end of September 2021, the credit loss provision amounted to SEK 26.0 M (20.8), corresponding to 11 percent (8) of total customer receivables. The increased credit loss provision despite lower total receivables was mainly related to a customer in the US. While the Group's credit losses have historically been limited, incurred credit losses have increased over the past five years to about 1.1 percent of the company's average customer receivables.
In March, the Parent Company issued a short-term loan of SEK 200,000 to Vinstandelsstiftelsen RayFoundation on market terms. The short-term loan was repaid in full to the Parent Company in the second quarter.
In 2021, in addition to his Board assignment, Chairman of the Board Lars Wollung has also served as senior advisor to the company on a consultancy basis. The consultancy engagement is remunerated on market terms with a fixed fee of SEK 250,000 per quarter.
| AMOUNTS IN SEK 000s | Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Chattel mortgages | 100,000 | 100,000 | 100,000 |
| Guarantees | 27,833 | 15,145 | 14,340 |
The year-on-year increase was largely attributable to bank guarantees issued for the new office premises.
| 2021 | 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|---|
| AMOUNTS IN SEK 000s | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 |
| Order intake | ||||||||
| Total order intake | 127,853 | 189,750 | 145,131 | 239,125 | 138,480 | 177,133 | 300,018 | 277,217 |
| Income statement | ||||||||
| Net sales | 136,419 | 154,579 | 162,102 | 159,835 | 119,130 | 163,758 | 208,889 | 234,499 |
| Change in sales, % | 14.5 | -5.6 | -22.4 | -31.8 | -17.5 | -13.7 | 20.7 | 6.9 |
| Operating profit/loss | -26,561 | -22,463 | 12,261 | -14,592 | -29,477 | -10,954 | 51,557 | 22,468 |
| Operating margin, % | -19.5 | -14.5 | 7.6 | -9.1 | -24.7 | -6.7 | 24.7 | 9.6 |
| Profit/loss for the period | -21,990 | -16,467 | 7,110 | -14,164 | -26,182 | -9,196 | 40,462 | 18,937 |
| Net margin, % | -16.1 | -10.7 | 4.4 | -8.9 | -22.0 | -5.6 | 19.4 | 8.1 |
| Cash flow | ||||||||
| Operating activities | 47,356 | 58,077 | 104,332 | 51,505 | 78,486 | 135,443 | 66,074 | 81,139 |
| Investing activities | -45,569 | -70,843 | -60,275 | -64,094 | -45,372 | -55,913 | -60,214 | -60,992 |
| Financing activities | -11,875 | -61,624 | -11,217 | -8,909 | -11,394 | -13,618 | -10,104 | -12,370 |
| Cash flow for the period | -10,088 | -74,390 | 32,840 | -21,498 | 21,720 | 65,912 | -4,244 | 7,777 |
| Capital structure | ||||||||
| Equity/assets ratio, % | 56.7 | 57.8 | 52.7 | 54.0 | 57.0 | 56.2 | 55.8 | 55.8 |
| Net debt | -52,983 | -50,385 | -65,952 | -22,439 | -31,476 | 206 | 73,231 | 56,869 |
| Debt/equity ratio | -0.1 | -0.1 | -0.1 | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 |
| Net debt/EBITDA | -0.3 | -0.3 | -0.4 | -0.1 | -0.1 | 0.0 | 0.3 | 0.2 |
| Per share data, SEK | ||||||||
| Earnings/loss per share before dilution | -0.64 | -0.48 | 0.21 | -0.41 | -0.76 | -0.27 | 1.18 | 0.55 |
| Earnings/loss per share after dilution | -0.64 | -0.48 | 0.21 | -0.41 | -0.76 | -0.27 | 1.18 | 0.55 |
| Equity per share | 19.38 | 20.00 | 20.49 | 20.25 | 20.71 | 21.48 | 21.79 | 20.58 |
| Share price at the end of the period | 61.5 | 87.40 | 89.50 | 82.70 | 87.50 | 86.50 | 57.60 | 107.20 |
| Other | ||||||||
| No. of shares before/after dilution, 000s | 34,282.8 | 34,282.8 | 34,282.8 | 34,282.8 | 34,282.8 | 34,282.8 | 34,282.8 | 34,282.8 |
| Average no. of employees | 418 | 414 | 412 | 404 | 399 | 391 | 386 | 331 |
| AMOUNTS IN SEK 000s | Oct 2020- | Jul 2020- | Apr 2020- | Jan 2020- | Oct 2019- | Jul 2019- | Apr 2019- | Jan 2019- |
|---|---|---|---|---|---|---|---|---|
| Sep 2021 | Jun 2021 | Mar 2021 | Dec 2020 | Sep 2020 | Jun 2020 | Mar 2020 | Dec 2019 | |
| Order intake | ||||||||
| Total order intake | 701,859 | 712,486 | 699,868 | 854,755 | 892,846 | 951,160 | 1,144,639 | 1,046,238 |
| Income statement | ||||||||
| Net sales | 612,935 | 595,646 | 604,825 | 651,612 | 726,276 | 751,495 | 777,395 | 741,584 |
| Operating profit/loss | -51,355 | -54,271 | -42,762 | -3,466 | 33,594 | 56,726 | 96,489 | 68,169 |
| Operating margin, % | -8.4 | -9.1 | -7.1 | -0.5 | 4.6 | 7.5 | 12.4 | 9.2 |
| Cash flow | ||||||||
| Cash flow | -73,136 | -41,328 | 98,972 | 61,890 | 91,165 | 55,970 | -5,811 | -3,385 |
| Cash flow adjusted for repayment of bank loans |
-23,136 | 8,672 | 98,972 | 61,890 | 91,165 | 55,970 | 69,189 | 71,615 |
The interim report refers to a number of non-IFRS financial measures that are used to provide investors and company management with additional information to assess the company's operations. The various non-IFRS measures used to complement the IFRS financial statements are described below.
| Non-IFRS measures | Definition | Reason for using the measure |
|---|---|---|
| Order intake | The value (transaction price) of all orders received and changes to | Order intake is an indicator of future revenue and thus a key figure |
| existing orders during the current period | for the management of RaySearch's operations | |
| Order backlog | The value of orders at the end of the period that the company has | The order backlog shows the value of orders already booked by |
| yet to deliver and recognize as revenue, meaning remaining | RaySearch that will be converted to revenue in the future. | |
| performance obligations. | ||
| Net sales/Order intake | Recognized net sales in relation to total order intake during the | The measurement is used to monitor the recognized revenue in |
| corresponding period | relation to sales, which is part of the reason for the change in order | |
| backlog. | ||
| Change in sales | The change in net sales compared with the year-earlier period | The measure is used to track the performance of the company's |
| expressed as a percentage | operations between periods | |
| Change in sales at | Change in sales at unchanged exchange rates, i.e. excluding | This measure is used to monitor underlying change in sales driven |
| unchanged currencies | currency effects | by alterations 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 measure the margin before sales, research, |
| development and administrative expenses | ||
| Operating profit/loss | Calculated as profit for the period before financial items and tax | Operating profit/loss provides an overall picture of the total |
| generation of earnings in operating activities | ||
| Operating profit adjusted for | Calculated as operating profit less other operating | Operating profit provides an overall picture of the total generation of |
| currency translation effects | income/expenses | earnings in operating activities excluding currency translation |
| effects for balance sheet items | ||
| Operating margin | Operating profit expressed as a percentage of net sales | Together with sales growth, the operating margin is a key element |
| for monitoring value creation | ||
| Net margin | Profit for the period as a percentage of net sales for the period | The net margin shows the percentage of net sales remaining after |
| the company's expenses have been deducted | ||
| Cash flow adjusted for | Cash flow for the period less cash flow from changes to bank loans | The measurement shows the underlying cash flow before financing |
| changes in bank loans | activities, but including amortization of lease liabilities. | |
| Equity per share | Equity divided by number of shares at the end of the period | The measurement shows the return generated on the owners' |
| invested capital per share | ||
| Rolling 12 months' sales, | Sales, operating profit or other results measured over the past 12- | This measure is used to more clearly illustrate the trends for sales, |
| operating profit or other | month period | operating profit and other results, which is relevant because |
| results | RaySearch's revenue is subject to monthly variations | |
| Working capital | Working capital comprises inventories, operating receivables and | This measure shows how much working capital is tied up in |
| operating liabilities, and is obtained from the statement of financial position. Operating receivables comprise accounts receivable, |
operations and can be shown in relation to net sales to demonstrate the efficiency with which working capital has been |
|
| other current/long-term receivables and non-interest bearing | used | |
| prepaid expenses and accrued income. Operating liabilities include | ||
| other non-interest bearing long-term liabilities, advance payments | ||
| from customers, accounts payable, other current liabilities and | ||
| non-interest bearing accrued expenses and deferred income. | ||
| Return on equity | Calculated as profit/loss for the period as a percentage of average | Shows the return generated on the owners' invested capital from a |
| equity. Average equity is calculated as the sum of equity at the end | shareholder perspective | |
| of the period plus equity at the end of the year-earlier period, | ||
| divided by two | ||
| Equity/assets ratio | Equity expressed as a percentage of total assets at the end of the | This is a standard measure to show financial risk, and is expressed |
| period | as the percentage of the total restricted equity financed by the | |
| owners | ||
| Net debt | Interest-bearing liabilities less cash and cash equivalents | This measure shows the Group's total indebtedness |
| and interest-bearing current and long-term receivables | ||
| Debt/equity ratio | Net debt in relation to equity | The measure shows financial risk and is used by management |
| to monitor the Group's indebtedness | ||
| EBITDA | Operating profit before financial items, tax, | The measurement is a way to evaluate the result without taking into |
| depreciation/amortization and impairment | consideration financial decisions or taxes | |
| Net debt/EBITDA | Net debt at the end of the period in relation to operating profit | A relevant measure from a credit perspective that shows the |
| before depreciation and amortization over the past 12-month period |
company's ability to handle its debt | |
| AMOUNTS IN SEK 000s | Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Working capital | |||
| Accounts receivable (current billed customer receivables) | 151,448 | 141,732 | 156,811 |
| Current unbilled customer receivables | 82,383 | 100,942 | 143,941 |
| Long-term unbilled customer receivables | 8,263 | 10,877 | 26,928 |
| Inventories | 21,295 | 13,760 | 9,110 |
| Other current receivables (excl. tax) | 79,283 | 42,996 | 74,980 |
| Accounts payable | -30,076 | -11,128 | -19,864 |
| Other current liabilities (excl. tax) | -296,757 | -237,170 | -312,791 |
| Working capital | 15,839 | 62,009 | 79,115 |
| AMOUNTS IN SEK 000s | Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 |
| Net debt | |||
| Current interest-bearing liabilities | 17,226 | 96,651 | 92,519 |
| Long-term interest-bearing liabilities | 50,380 | 66,013 | 53,788 |
| Cash and cash equivalents | -120,589 | -194,140 | -168,746 |
| Net debt | -52,983 | -31,476 | -22,439 |
| AMOUNTS IN SEK 000s | OCT 2020- | OCT 2019 | Full-year |
| -SEP 2021 | -SEP 2020 | 2020 | |
| EBITDA | |||
| Operating profit/loss | -51,355 | 33,594 | -3,466 |
| Amortization and depreciation | 236,409 | 205,611 | 213,293 |
| EBITDA | 185,054 | 239,205 | 209,827 |
| CHANGE IN SALES AT UNCHANGED CURRENCIES | OCT 2020- | OCT 2019 | Full-year |
| -SEP 2021 | -SEP 2020 | 2020 | |
| Net sales for the year | 610,115 | 726,276 | 651,612 |
| Currency adjustment | 31,915 | -6,466 | 13,805 |
| Adjusted Net sales | 642,030 | 719,810 | 665,417 |
| Net sales, preceding year | 726,276 | 726,528 | 741,584 |
| Organic growth | -11.2% | 0.9% | -10.3% |
RaySearch Laboratories AB (publ) Box 3297 SE-103 65 Stockholm, Sweden
Sveavägen 44, Floor 7 SE-111 34 Stockholm, Sweden Tel: +46 (0)8 510 530 00 www.RaySearchlabs.com Corp. Reg. No. 556322–6157
RaySearch Laboratories AB (publ) is a medical technology company that develops innovative software solutions for improved cancer treatment. The company develops and markets the RayStation treatment planning system and RayCare oncology information system to cancer centers all over the world and distributes the products through licensing agreements with leading medical technology companies.
In December 2020, the RayCommand treatment control system and RayIntelligence oncology analytics system were also launched. RaySearch's software is now used by more than 2,600 centers 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
The company's vision is a world where cancer is conquered and RaySearch's mission is to provide innovative software to continuously improve cancer treatment.
A radiation therapy center essentially needs two software platforms for its operations: a treatment planning system, and an information system. With RayStation and RayCare, RaySearch will strengthen its position and continue to grow with high profitability. The company's strategy is based on a strong focus on innovative software development with leading functionality, support for efficient workflows – including via digitization and automation with machine learning – broad support for a wide range of treatment modes and radiation therapy devices, close collaboration with world-leading cancer centers and industrial partners, and extensive investment in research and development.
RaySearch's main revenue is generated by customers paying an initial license fee for the right to use RaySearch's software and an annually recurring service fee for access to updates and support. All software systems are developed at RaySearch's head office in Stockholm, and distributed and supported by the company's global marketing organization.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.