GuruFocus -
- Order Intake: SEK100 million, a decline of 40% or 38% in constant currencies from Q3 '23.
- Revenue: SEK100 million, down 10% from the same quarter last year or 7% in constant currencies.
- EBIT Margin: 17% for the quarter.
- Order Backlog: SEK735 million, same level as Q3 last year.
- Gross Profit: SEK72.7 million, with a margin of 73% compared to 65% last year.
- Operating Expenses (OpEx): SEK53.7 million, slightly increased from SEK51.7 million last year.
- EBIT: SEK17.4 million, compared to SEK18.9 million a year ago.
- Cash Position: SEK118.7 million at quarter end, down from SEK142 million at the beginning of the quarter.
- EMEA Order Intake: Decreased 77% to SEK23 million.
- Americas Order Intake: Up 10% to SEK28 million; Revenue declined 10% to SEK23 million.
- APAC Order Intake: Up 11% to SEK48 million; Revenue increased 43% to SEK45 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- C-Rad AB (FRA:24C) maintains a strong financial stability with a solid profitability despite challenges in the EMEA region.
- The company has a comprehensive interoperability portfolio interfacing with major LINAC, Proton, and CT vendors, enhancing its market position.
- C-Rad AB is expanding its global presence, particularly in less mature Southeast Asian markets and Latin America, which strengthens its resilience.
- The APAC region showed strong performance with an 11% increase in order intake and a 43% increase in revenue.
- 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.
- Order intake for the third quarter declined by 40% from the previous year, falling below expectations.
- Revenue decreased by 10% compared to the same quarter last year, primarily due to lower order intake and backlog conversion timing.
- The EMEA region experienced a significant 77% decrease in order intake, impacted by macroeconomic slowdown and slower decision-making.
- Cash flow was negatively affected by increased receivables related to Proton orders, leading to a decrease in cash at quarter end.
- Concerns were raised about investor confidence following a private presentation that allegedly led to a stock price drop.
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
Q: When do you expect the acceptance test for the Proton orders to be completed, and can you disclose the amount tied up in working capital?
A: The timing of the final acceptance test varies by customer, making it difficult to predict. The working capital effect this quarter is largely due to Proton orders, but I cannot provide an exact number. - Linda Frolen, CFO
Q: Can you indicate if the tied-up working capital will be freed up in the fourth quarter or next year?
A: I cannot specify regarding the Proton orders, but managing the balance sheet is a primary focus for me as the new CFO. - Linda Frolen, CFO
Q: There was a private presentation at an Investor Day in September, after which the stock price dropped. Was asymmetrical information given to investors?
A: The information shared at the Pareto conference was not new. Any perception of asymmetry is due to how the information was reported, which is beyond our control. - Cecilia de Leeuw, CEO
Q: Do you understand the negative optics of the situation regarding the private presentation and its impact on investor confidence?
A: The information was not new, and the presentation or display by the reporter is their responsibility. - Cecilia de Leeuw, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.