• Net sales for the period amounted to SEK 69.0 M (69.9)
• Profit after tax was SEK 36.2 M (29.1)
• Earnings per share after tax amounted to SEK 3.17 (2.56)
• Operating profit amounted to SEK 33.5 M (39.6)
• Cash flow from operating activities was SEK 30.1 M (41.4)
Johan Löf, President and CEO of RaySearch Laboratories AB, comments on the fourth quarter and year-end report for 2006 as follows:
“Sales during the fourth quarter rose 10 percent to SEK 21.2 M. It is pleasing to note that the measures taken by Nucletron to increase sales of OM-Optimizer, OM-Machine and OM-Machine+ are now showing results. Philips had a strong close to its order bookings during the fourth quarter. However, the installation process for several major clinics and public hospitals will not take place until the beginning of 2007, and this in turn had a restraining effect on sales for RaySearch.
Sales in 2006 were at the same level as a year earlier. Sales amounted to SEK 69 M and the number of licenses sold was 816. A certain increase in sales could be noted from Nucletron as a result of a strong fourth quarter, while revenues from Philips declined somewhat due to a postponement of installations at the end of the year. Support revenues rose during the year by 69 percent to SEK 16 M.
The most significant event during 2006 was that we finalized the negotiations with Philips and conclude an agreement in the area of adaptive radiation therapy. The agreement involves three new products and development work is now in full operation regarding these products. The advantage of adaptive radiation therapy is that it enhances geometrical precision by taking into account changes in the patient’s anatomy during treatment. Higher doses can be delivered to the tumor at the same time as the risk of side effects is reduced.
In the preceding interim report, we were able to announce that an agreement had been signed with Nucletron relating to treatment planning of radiation therapy with protons. Demand for treatment planning products for protons in the treatment of cancer is increasing rapidly, as major international congresses have confirmed. We anticipate that the long-term development and license agreement with Nucletron will result in an innovative system for treatment planning and optimization of radiation therapy using protons.
The cooperation initiated by RaySearch and Scanditronix-Wellhöfer during the year relating to quality assurance within IMRT is proceeding according to plan. The system, named COMPASS, has been demonstrated internationally to doctors and physicists and has received many positive responses. Altogether, three quality-assurance products will be developed, the first two of which will be launched commercially during 2007.
During 2006, the establishment of several important alliances broadened the base for the development of new products within radiation therapy of cancer. We are now entering a new phase in which we will be launching products resulting from these significant joint projects. We are expanding our product portfolio continuously and I wish to emphasize that we are continuously conducting discussions with several partners about further cooperations, I am highly optimistic about future developments for RaySearch.”
Stockholm, February 7, 2007
RaySearch Laboratories AB
Johan Löf, President and CEO
For further information, contact:
Johan Löf, President and CEO
RaySearch Laboratories AB
Telephone: +46 (0)8-545 061 30
johan.lof@raysearchlabs.com
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