DRTECH maintained profitability in the third quarter while continuing to expand its revenue base in the second half of this year.
The company said Friday that its third-quarter revenue reached 34.5 billion won, setting a record high for the third quarter. Operating profit stood at 2.2 billion won, while the company posted a net loss of 8.3 billion won.
The net loss was affected by unrealized foreign exchange translation losses on items such as foreign currency receivables, which arose from the decline in the won-dollar exchange rate during the quarter.
DRTECH said rising domestic and overseas demand for its dynamic detectors, surgical X-ray systems known as C-arms, and breast cancer diagnostic products drove its third-quarter performance.
By product, detectors accounted for 52 percent of cumulative revenue through the third quarter, followed by X-ray systems at 20 percent and mammography systems at 19 percent.
DRTECH is expanding its presence in major markets, including Japan, the United States and France, with its dynamic detector EXPEED. Revenue from the product more than doubled in the first nine months of this year from the same period a year earlier, driven by an increase in business with global companies.
The product is based on indium gallium zinc oxide (IGZO) semiconductor technology, which DRTECH developed for the world's first dynamic detector of its kind. It is increasingly replacing conventional dynamic detectors based on complementary metal-oxide-semiconductor (CMOS) technology.
"With rising CMOS semiconductor prices and supply instability, DRTECH's IGZO-based dynamic detectors are drawing attention as an alternative that offers both price competitiveness and supply stability," a company official said. "Global company A has abandoned CMOS-based detectors and switched to IGZO-based products, recently increasing its orders. Another customer for dental systems has also placed advance orders for supplies for the first half of next year."
DRTECH's C-arm system EXTRON is expanding its supply network beyond South Korea to the United States, Europe and the Middle East. Cumulative revenue from the product through the third quarter rose 45 percent from a year earlier.
EXTRON delivers radiation exposure levels less than one-fifth those of competing products, among the lowest in the world. Equipped with DRTECH's proprietary in-house-produced dynamic detector, it provides high-quality, high-resolution images in real time with relatively little distortion.
The company's new orthopedic-focused model, EXTRON6, combines space efficiency with high performance. It recently received U.S. Food and Drug Administration (FDA) clearance and began sales in the third quarter.
Cumulative revenue from DRTECH's breast cancer diagnostic system AIDIA and detector RoseM increased 16 percent year over year through the third quarter.
Sales of its premium 3D mammography system, AIDIA LUXE, have risen following the introduction of insurance reimbursement coverage at hospitals.
Orders are also increasing at home and abroad for AIDIA LUXE TRUMETRIC, a breast tomosynthesis-guided stereotactic biopsy system launched this year.
The diagnostic device uses three-dimensional coordinates to precisely target lesions such as microcalcifications and collect breast tissue samples for biopsy.
DRTECH has also received U.S. FDA clearance for its new human X-ray system, New EXSYS DEXi, which is equipped with four models of its proprietary X-ray generator, DXG.
The digital X-ray system combines optimized image processing and system control technologies. It is designed to improve user convenience, imaging efficiency, image quality and system integration.
Starting this month, DRTECH plans to supply its industrial bendable detector, EXTREAM FleX, which it developed as the world's first of its kind, to a global nondestructive testing (NDT) solutions company through an original design manufacturing (ODM) arrangement.
The company expects demand for industrial bendable detectors to grow as the NDT market accelerates its digital transformation.
"We recorded meaningful operating profits in the third quarter, following the second quarter, as we established a foundation for normalizing earnings and improving profitability," a DRTECH official said. "However, the sharp decline in the won-dollar exchange rate at the end of the third quarter compared with the end of the second quarter had an accounting impact on net income. This should be distinguished from losses arising from business operations."
"Regardless of net income, we are continuing to improve the profitability of our core business," the official added. "We will repay shareholders' trust through continued earnings improvement."
in THEBIO
