• Net sales for the period amounted to SEK 69.9 M (39.5) • Profit after tax totaled SEK 29.1 M (11.2) • Earnings per share after tax amounted to SEK 2.56 (1.07) • Operating profit amounted to SEK 39.6 M (12.5) • Cash flow from operating activities amounted to SEK 41.4 M (12.9) • License agreement with Scanditronix-Wellhöfer finalized in February 2006
Johan Löf, President and CEO of RaySearch Laboratories AB, comments on the year-end results as follows: “RaySearch performed very strongly during the year. Sales amounted to SEK 70 M for 2005, an increase of 77 percent compared with 2004. Operating profit tripled, amounting to SEK 40 M, which was higher than RaySearch’s sales in 2004. In the fourth quarter of 2005, the growth rate was even higher than for the year in total. Sales for the quarter totaled SEK 19.2 M, which was an increase of 83% compared with the year-earlier period. There was an eight-fold increase in operating profit to SEK 10.6 M. It is satisfying that the rate of growth is so high and that there is a strong upward trend. The company has a strong financial position, with solid cash flow and a very high level of liquidity. During the year, the company sold 847 licenses, which is an increase of nearly 400 licenses compared with the preceding year. Sales of RayMachine tripled. RayOptimizer maintained a stable level at about 300 licenses. Following its introduction during the year, 125 licenses were sold for OM-Optimizer. The positive trend for RayMachine is stimulating. RayMachine was very well received by customers. For example, a leading representative for UCSF Medical Center at the University of California in San Francisco stated that RayMachine can reduce treatment time from 30 to 15 minutes in the most complex IMRT treatments of the head and neck. The time-savings for the medical sector are substantial and are achieved while maintaining the quality of the healthcare. Regarding the development of OM-Optimizer during the year, results proved significantly lower than expectations. This is possibly the result of delays, but the collaboration partner Nucletron has now undertaken a number of measures to increase sales, including strengthening its marketing organization. In 2005, a Letter of Intent was signed with Philips to agree a long-term development and licensing contract relating to adaptive radiation therapy. Due to the complexity of the contract, negotiations have taken longer than expected. We hope that a contract will be finalized in a not too distant future. This collaboration will be of major importance to our activities in adaptive radiation therapy. In November, we signed a Letter of Intent with Scanditronix-Wellhöfer, the market leader in dosimetry equipment. It is highly satisfying that it was possible to announce the signing of the final contract yesterday. Based on this contract, the companies can create an effective and competitive system for the automated quality control of IMRT. All hospitals that provide treatment with IMRT are potential customers. Scanditronix-Wellhöfer is at the forefront of detector technology and has an extensive installation base within an industry segment to which RaySearch has had no access to date. Overall, there has been strong sales growth for our products. As a result of the agreement with Scanditronix-Wellhöfer, we now cooperate with a third partner, in addition to Philips and Nucletron.. We have every reason to be optimistic about the future of RaySearch.” February 7, 2006 RaySearch Laboratories AB Johan Löf, CEO For further information, contact: Johan Löf, CEO RaySearch Laboratories AB Telephone: +46 (0)8-545 061 30 johan.lof@raysearchlabs.com