• Net sales for the period amounted to SEK 50.7 M (29.0) • Profit after tax totaled SEK 21.0 M (10.1) • Earnings per share after tax amounted to SEK 1.86 (0.96) • Operating profit amounted to SEK 29.0 M (11.1) • Cash flow from operating activities amounted to SEK 32.7 M (10.1)
Johan Löf, President and CEO of RaySearch Laboratories AB, comments on the first nine months of the year as follows: “The growth rate has remained high and RaySearch reports a sales increase of 75 percent for the first nine months of the year compared with the year-earlier period. Operating profit rose 161 percent to SEK 29.0 M for the corresponding period. For the third quarter, we report a doubling of sales and a threefold increase in operating profit compared with the corresponding period in the preceding year. This should be considered in light of the fact that the third quarter of the year is relatively slow for our industry. We report excellent cash flow and very good liquidity. In other words, RaySearch’s financial position is strong. Regarding the sales of OM-Optimizer, a number of customers have postponed purchasing Oncentra MasterPlan until after receipt of a so-called service pack from Nucletron. This service pack, released on the last day of September, has caused a shift in the sales trend for OM-Optimizer. OM-Optimizer has attracted considerable interest – for example, Nucletron recently announced that the Northern Ireland Cancer Center in Belfast has purchased Oncentra MasterPlan and OM-Optimizer. In March, the hospital is scheduled to open a new unit, consisting of 13 workstations, at which radiation therapy using IMRT (Intensity Modulated Radiation Therapy) and RaySearch’s technology are to be central elements. Half a year ago, RaySearch and Philips signed a Letter of Intent to sign a development and license agreement in adaptive radiation therapy, which is the next major technological advance in radiation therapy. The negotiations, which have been under way since then, have fallen behind due to the high degree of detail of the agreement. It is our hope that a final agreement is not too distant. The agreement will have considerable significance for our expanding operations in adaptive radiation therapy. Some significant events that occurred after the close of the third quarter are worth mentioning. At the large annual ASTRO meeting, we had the pleasure of presenting the results of research carried out at Toronto’s Princess Margaret Hospital using RaySearch’s adaptive radiation therapy system, as the main theme of a plenary session given to 5,000 attendees. The response was very positive. It is also encouraging that we recently signed a Letter of Intent regarding a forthcoming agreement with Scanditronix-Wellhöfer, the leading player in the market for dosimetry measurement equipment, last week. Joining forces will enable the companies to create efficient, competitive systems for automated quality assurance of IMRT. There is currently a great need among clinics for new solutions in this area, since the quality assurance process is highly personnel-intensive. Scanditronix-Wellhöfer is at the very forefront of detector technology and has a large installed base in a market segment to which we have not had access previously. An upcoming agreement implies a natural and exciting expansion of RaySearch’s product portfolio.” Stockholm, November 16, 2005 RaySearch Laboratories AB Johan Löf, CEO