In This Article:
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Order Intake: SEK100 million, a decline of 40% or 38% in constant currencies from Q3 '23.
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Revenue: SEK100 million, down 10% from the same quarter last year or 7% in constant currencies.
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EBIT Margin: 17% for the quarter.
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Order Backlog: SEK735 million, same level as Q3 last year.
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Gross Profit: SEK72.7 million, with a margin of 73% compared to 65% last year.
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Operating Expenses (OpEx): SEK53.7 million, slightly increased from SEK51.7 million last year.
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EBIT: SEK17.4 million, compared to SEK18.9 million a year ago.
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Cash Position: SEK118.7 million at quarter end, down from SEK142 million at the beginning of the quarter.
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EMEA Order Intake: Decreased 77% to SEK23 million.
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Americas Order Intake: Up 10% to SEK28 million; Revenue declined 10% to SEK23 million.
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APAC Order Intake: Up 11% to SEK48 million; Revenue increased 43% to SEK45 million.
Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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C-Rad AB (FRA:24C) maintains a strong financial stability with a solid profitability despite challenges in the EMEA region.
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The company has a comprehensive interoperability portfolio interfacing with major LINAC, Proton, and CT vendors, enhancing its market position.
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C-Rad AB is expanding its global presence, particularly in less mature Southeast Asian markets and Latin America, which strengthens its resilience.
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The APAC region showed strong performance with an 11% increase in order intake and a 43% increase in revenue.
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C-Rad AB has a healthy EBIT margin of 17% and a strong balance sheet with no long-term debt, allowing for future growth investments.
Negative Points
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Order intake for the third quarter declined by 40% from the previous year, falling below expectations.
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Revenue decreased by 10% compared to the same quarter last year, primarily due to lower order intake and backlog conversion timing.
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The EMEA region experienced a significant 77% decrease in order intake, impacted by macroeconomic slowdown and slower decision-making.
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Cash flow was negatively affected by increased receivables related to Proton orders, leading to a decrease in cash at quarter end.
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Concerns were raised about investor confidence following a private presentation that allegedly led to a stock price drop.
Q & A Highlights
Q: How should we think about the gross margin in Q4 given the high levels due to Proton orders in the last two quarters? Do you have any orders left to deliver in the fourth quarter? A: We do have Proton orders in our backlog, but the timing of their delivery is uncertain. Typically, the underlying gross margin is around 63% to 65%, but it will be boosted in quarters with Proton deliveries. It's too early to say if this will happen in Q4. - Linda Frolen, CFO