May 10, 2017 / 5:00 AM / 6 months ago

IBA cuts margin guidance on customer construction delays

May 10 (Reuters) - Belgian medical equipment maker Ion Beam Applications (IBA) slightly lowered margin expectations on Wednesday, citing recent delays in project execution in its core proton therapy business.

IBA, which makes proton therapy machines to treat cancer, cut its 2017 operating margin guidance to 10-12 percent from 11-12 percent previously.

“The implementation of several projects has been deferred due to construction delays faced by some of our clients, leading us to slightly adjust our full year guidance for 2017,” Chief Executive Olivier Legrain said in a statement, adding that the 15-20 percent revenue growth target for the year remains unchanged.

The company now expects margins to settle around 13 percent in 2018, down from 13-15 percent, but its 2020 guidance of a 15 percent operating margin remains unchanged.

IBA also reported a 13.4 percent rise in first-quarter revenue to 73.3 million euros ($79.8 million), boosted by recovering revenue at its dosimetry business, which makes testing and calibration equipment for a range of applications.

Revenue at the core proton therapy business was up 12 percent year on year. ($1 = 0.9189 euros) (Reporting by Wout Vergauwen; Editing by David Goodman)

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