Louvain-La-Neuve, Belgium, January 5, 2018 - IBA (Ion Beam Applications S.A., EURONEXT), the world’s leading provider of proton therapy solutions for the treatment of cancer, today provides a trading update ahead of the Company’s full year results on March 22, 2018.
Further to the Company’s announcement this morning of the signature of a proton therapy contract in Argentina worth EUR 10-15 million, IBA is finalizing late stage negotiations for contracts with at least four proton therapy prospects that had been expected to be signed in 2017. IBA continues to be confident in signing these contracts, however, the timescale for when final signature will be received is difficult to determine. Consequently, the Company will not meet its previously announced full year 2017 revenue guidance and will report a negative REBIT.
Taking into account the strength of its equipment and service backlog, its pipeline and its cost control measures, IBA will return to a positive REBIT and net profit after tax in 2018. However due to the difficulty in predicting the timing of signature of proton therapy contracts and the impact this has on IBA’s revenue recognition, IBA is withdrawing all other guidance until further notice.
IBA has put into action a number of measures to drive growth and profitability, whilst continuing to improve on tight cost controls and efficiencies. Revenue recognition from the conversion of the Proton Therapy and Other Accelerators backlog is on track (Q317: EUR 284 million for equipment expected to be converted over three years and EUR 682 million for services expected to be converted over a median of eight years) and Dosimetry continues to demonstrate good performance. Upgrades of existing proton therapy systems and services also remain strong sources of future revenues. A reorganization of the Company’s Proton Therapy business unit was conducted in 2017 as part of the plan to further enhance efficiency, project management and delivery. This, alongside the collaborations announced with Elekta and Vinci Construction last year, will further reinforce IBA leadership in offering highly competitive and attractive proton therapy solutions to its customers worldwide.
Olivier Legrain, Chief Executive Officer of IBA commented: “The fundamentals of the proton therapy market continue to be solid, as demonstrated by the number of projects for which we are in late stage negotiations and the numerous prospects we are pursuing across all global markets. IBA remains fully focused on driving growth and has moved quickly to mitigate the 2017 challenges resulting from customer project delays and more competitive market conditions. Alongside our strategic partnerships and ongoing focus on cost controls and maintaining the world’s most competitive and attractive proton therapy offering, IBA will continue to drive towards a positive REBIT and net profit after tax in 2018 and beyond.”