Interim report January – September 2006
• Net sales soared 44% to MSEK 148.5 (103.3), a 13% increase for comparable units.
Operating loss totaled MSEK 29.0 (loss: 13.5).
• Loss after tax totaled MSEK 18.8 (loss: 9.1).
• Loss per share was SEK 1.14 (loss: 0.62)
• Performance for the twelve-month period will be affected by restructuring costs in Germany
and is therefore expected to be significantly worse than 2005. This is a change compared to previous forecast.
Significant events after the reporting period
• Restructuring in Germany because of drastically changed market conditions.
Summary of the third quarter 2006
The third quarter has been characterized by intensive marketing activities for MobiMed and CoroNet. The Company received a strategic order for MobiMed in Italy. In close collaboration with Philips Medical Systems, the company will deliver equipment for over 70 emergency vehicles and 40 hospitals and emergency service centers in Piemonte in Northern Italy. Collaboration with other vendors is an important component of the Company’s strategy. Interest in MobiMed Electronic Patient Record (”ePR”) is great, and Ortivus received the first orders on the Swedish market.
After the success for MobiMed and CoroNet on the home market the Company is now building up its international sales channels. Establishment through distributors has occurred on selected European markets during the first half of the year, and more agreements will be signed during 2006. The goal of establishing sales channels will therefore be achieved. In general, international promotion of MobiMed and CoroNet has taken longer than expected, in part because of the delayed product launches. The international orders received for instance in Canada, Italy and Great Britain, confirms the company’s international growth.
As part of the internationalization strategy, Ortivus participated at the World Congress of Cardiology in Barcelona in early September. It is the world’s biggest conference in cardiovascular medicine and is attended by over 25,000 cardiologists. Ortivus presented solutions for cardiac care, which attracted great interest.
In Great Britain the Company is now waiting for the final commercial terms related to the agreement for the ”Connecting for Health”-project. The agreement has been delayed because of Fujitsu’s efforts to simplify the complex agreement structure in relation to the responsible organization, the National Health Service (NHS). Fujitsu’s has stated that it intends to complete the contract during December this year. The NHS has now decided to subsidize even hardware under the Connecting for Health scheme, which means great potential for upselling of MobiMed hardware and ECG equipment during the upcoming years.
In North America the US company continues to develop favorably, with strong profitability and revenue growth. Market share for invoicing services for emergency services amounts to about 40%, which means a market-leading position. During the quarter the company began deliveries to a new large prestigious customer.
In Germany competition has dramatically changed over a very short period, as was previously stated, resulting in substantially lower end-customer prices for the entire market. This has affected the Company’s profitability. Ortivus does not expect market prices to return to earlier levels over the next one to two years and therefore the Company has initiated several measures since the end of the reporting period to ensure rapid restructuring of its German operations (see ”Significant events after the reporting period” in enclosed PDF for more information).
Future reporting dates:
Year-End-Report will be published on February 23, 2007.
For more information:
Mikael Strindlund, CEO, Ortivus,
telephone +46 (0)8-446 45 00 or mobile: +46 (0)70-269 53 03
Please also visit: www.ortivus.com