Nucletron reports strong growth in first half of 2010

VEENENDAAL, THE NETHERLANDS, 8 September 2010 – Nucletron, the knowledge-based leader in radiation oncology, today announced significant growth in sales and financial results over the first half year of 2010. Sales grew by 11.3% to EUR 57.0 million, compared to EUR 51.2 million in the first half of 2009. EBITDA increased by 19.3% from EUR 6.3 million to EUR 7.5 million. Nucletron maintains its outlook for 2010 of a sales growth that exceeds the market growth of 7% and continues to expect profitability levels to reach 20% (EBITDA as % of sales) in the medium term.

Jos Lamers, CEO of Nucletron, comments: "We have realized a strong 2010 so far looking at the significant sales growth of 11%, where the market is at a 7% growth rate. Our profitability margins have also improved further. With our continued focus on innovation and global expansion, including our recently opened offices in Brazil and the Middle-East, we expect to continue to outperform the market."

Increasing awareness of brachytherapy

As the global market leader in brachytherapy, Nucletron is aware of its special responsibility to continue developing state-of-the-art products and to support the increase in the use of brachytherapy worldwide as a critical treatment option in the fight against cancer. In March 2010 Nucletron launched a global awareness campaign to raise awareness and increase the adoption of brachytherapy as a very precise, efficient and effective form of radiotherapy for the treatment of cancer. This included a new website, http://www.aboutbrachytherapy.com/, as well as other turnkey resources aimed at educating patients, clinicians, media, and policymakers alike to the value of brachytherapy. Several new product programs and the development of new software allowing tumors to be precisely treated also drove growth in the first six months of 2010.

Expansion of radiotherapy footprint

Nucletron believes that increasing the awareness on the benefits of brachytherapy needs a strong global footprint. Nucletron opened new offices in the Middle East as well as in Brazil as a hub for Latin America, and will continue to expand its footprint in the coming years.

Sales growth in all regions

Nucletron reported a strong growth in the first half of 2010, with sales of EUR 57.0 million, compared to EUR 51.2 million in the first six months of 2009. Product sales accounted for 55% of sales, while service sales represented 45% of sales.

Brachytherapy is the company’s main activity, accounting for 54% of sales in the first half of 2010. Brachytherapy product sales showed a strong growth of 27% versus last year, the result of Nucletron’s many efforts to grow the brachytherapy market.

Sales growth was realized in all four worldwide regions. The company generated 38% of sales in Europe in the first half of 2010, with North America accounting for 30% of total sales, Asia-Pacific for 23% and emerging markets for 9%.

Nucletron’s EBITDA for the first half of 2010 increased by 19.3% to EUR 7.5 million, compared to EUR 6.3 million in the same period of 2009. This was mainly a result of the increased sales, in combination with an increased spending in medical marketing, sales and R&D.

Outlook

Nucletron maintains its outlook for 2010 of a revenue growth that will exceed the 7% growth forecast for the radiotherapy market, as announced at the publication of the 2009 results. The growth in revenues will further increase profitability, despite the ongoing higher investments in medical marketing, sales and R&D. Nucletron continues to expect profitability levels to reach 20% (EBITDA as % of sales) in the medium term. Strong cash-flow generation will enable continued reduction in debt with EUR 7.5 – 10.0 million in 2010.

The objectives for the second half of 2010 are focused on further increasing the awareness on the benefits of brachytherapy to physicians, patients and payers. Nucletron has seen good success of its approach especially in Southern Europe, and will expand this success to other parts of the world. Furthermore, it is expected that Oncentra, software for treatment planning, will pick up further momentum as it will see significant innovation in the second half of 2010, both for its external beam and for its brachytherapy offering.

About Nucletron

Nucletron provides state of the art radiotherapy solutions for cancer treatment that meet the evolving needs of patients, their caregivers and healthcare professionals around the world. Nucletron has unmatched global leadership in brachytherapy, a very precise, highly effective and well-tolerated treatment option for healthcare providers, tailored to the needs of individual patients. We work with clinical teams to constantly improve and develop an innovative portfolio of integrated products, software and services that assures excellent patient outcomes. Headquartered in Veenendaal, The Netherlands, Nucletron employs more than 500 employees, with offices in 15 countries, and products available in more than 100 countries around the world. Please visit http://www.nucletron.com/ to learn more about our healthcare solutions.