Image credit: DRTECH booth, RSNA 2017
On November 13th, DRTECH published its financial results for Q3 2020. These results show that sales continued to grow strongly during the quarter. Total company sales reached ₩13.3 bn, compared with ₩11.4 bn during Q3 2019, an increase of approximately +16% year-on-year. This took cumulative 2020 sales to ₩41.3 bn, compared with ₩33.3 bn during 2019, an increase of approximately +24% year-on-year.
From a product perspective, the sales growth during the quarter was driven by higher sales from indirect-type detectors, x-ray system sales and ‘software & other’. Higher sales from these product categories were partially offset by lower sales from direct-types detectors and detectors for mammography.
The companies portfolio of indirect detectors encompasses the EXPRIMER, EXTREAM and EXPEED branded products which are a-Si TFT-type detectors deposited with CsI or GoS scintillator. During the quarter, sales from indirect detectors increased by +36%, relative to Q3 2019, resulting in cumulative 2020 sales growth of +38%.
During April-20, DRTECH entered the mammography system market through the launch of AIDIA, predicated upon its EXSYS x-ray detector technology. Initial sales have been brisk and system plus EXSYS detector sales accounted for 10% of total company sales during the first nine months of 2020. The company seeks to compete with the larger incumbent OEMs, Hologic, GE Healthcare and Siemens Healthineers, through differentiating its systems with its detector technology. The AIDIA systems uses a large panel size as well as applying two detectors with the industry’s smallest pixel size. This helps to reduce repeat examinations, especially for larger patients, as well as deliver exceptional image quality.
During the quarter, sales from ‘software & other’ increased by +50%, relative to Q3 2019, resulting in cumulative 2020 sales growth of +53%. This encompasses the Truview branded image processing solutions.
Production volumes
The company operates two core production plants, one located at its headquarters in Seongnam-si, South Korea and the other based in Changzhou, China. For the first nine months of 2020, the company reported consolidated maximum production capacity of 3,465 detector units. In terms of production volumes, the company reported total production of 3,100 units.
| Subsidery | Incorporation | Control |
|---|---|---|
| DRTECH North America Inc | USA | 100% |
| DRTECH Europe GmbH | Germany | 100% |
| DRTECH Shanghai | China | 100% |
| DRTECH in China | China | 100% |
| DRTECH in Japan | Japan | 100% |
| Seetech Medical Co., Ltd | Korea | 70% |
The Group acquired 180,000 new common stocks of Ctech Medical Co., Ltd. during the current quarter and included them in the subsidiaries subject to consolidation, and acquired an additional 30,000 old common stocks during the current quarter. During the previous year, DRTECH In JAPAN was established and acquired with a 100.0% stake and included in the subsidiaries subject to consolidation.
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