To expand in the Canadian market is part of our long-term growth plan. Canada has some unique healthcare challenges that we are prepared to address with our flexible and intuitive software. Sectra has highly-satisfied customers in Canada, but we still have a relatively small market share. This is something we believe we can improve through increased local presence.
I am proud to say that the close partnership we have with all our customers in combination with clear crisis management processes has made this an efficient, although tough journey. We have worked around the clock, also over the weekend, to get systems back up at record times. As a medical IT company with its roots in cybersecurity, we have a big advantage in situations like these.
With Sectra as our vendor, we will be able to smoothly expand the solution as we grow, to include additional hospitals and medical disciplines. That advantage, as well as the possibility to geographically work from anywhere, were especially important to us in our choice of vendor. From our earlier experience with Sectra, we know that the solution has very high system availability and that Sectra’s support team will be there for us when we need assistance.
Our focus on cancer care through integrated diagnostics allows for great synergies with City of Hope. We are honored to be working with such a prominent cancer research organization.
We are elated to partner with a highly-esteemed institution like UPHS. We look forward to joining forces to accomplish our mutual goals of enhanced patient care and improved diagnostic outcomes.
Sectra’s proven track record of high availability and stable integrations with other systems were important aspects in our choice of vendor. Another key factor is that the solution is delivered through the cloud, which increases efficiency and reliability.
The US is one of the markets where our largest business area, Imaging IT Solutions, is growing and capturing market shares with its medical IT systems. Over the past three years, the US operations have reported average sales growth in excess of 20% per year. I recently returned from the US, where we once again received the prestigious award of “Best in KLAS” for our top ranking in customer satisfaction. This is the fourth consecutive year that Sectra’s system for managing medical images has received this award in the US, and the third year globally. In my opinion, the fact that we have won this award for so many years in a row is directly attributable to our close cooperation with customers, our strong corporate culture and our outstanding employees.
Our basic view is that it is better to be big in a few countries than to be small in many. Our goal is to be the largest or second largest supplier in the countries where we have subsidiaries. Just as we began operating in France last year, we plan to open offices in one or two additional countries during the coming year.
Within the Secure Communications business area, we have turned a loss into a profit. With new security approvals from NATO and the Netherlands, the business area has begun delivering the latest generation of Sectra’s Tiger products – products that protect phone calls and data communications from eavesdropping. While the business area’s focus on the growth of the new critical infrastructure product area will hamper its earnings trend in the short term, it will ultimately contribute to continued expansion.
With this joint solution from Sectra, information will follow the patient instead of the other way around. Sectra’s proven track record of extremely high system availability was another important aspect for us in the choice of vendor and is also key in delivering efficient healthcare.
Sectra is a pioneer in mobile voice encryption, with over 20 years’ experience of mastering mobile secure communication systems. With this partnership, now with the formal approval from NATO, we are making smartphone technology available to a large group of users who were not previously able to use it due to security concerns.
We are seeing a growing trend of increased patient engagement. Patients are becoming more keen to have access to their own medical records, for example to be able to have a deeper dialog with their physician or to bring along their medical images for treatment at another hospital. The extended capabilities of our solution will make it easier for healthcare providers to meet that demand, and thus help healthcare to become more inclusive and patient-centered.
A major factor for choosing Sectra was their high system uptime rates and strong physician satisfaction rankings in KLAS. Our radiologists enjoyed the enterprise wide system to distribute images quickly and efficiently across a very large geographic area. This will result in increased efficiencies for our business and referring physicians while providing swifter results for our patients.
To receive these accolades from users all over the globe, demonstrates the quality of our people and our software, regardless of where in the world or where in the hospital these customers work. It also shows our dedication to making our customers successful in every discipline we choose to enter—in radiology as well as in the broader field of enterprise imaging or cybersecurity
To maintain Sectra PACS as ‘Best in KLAS’ for four straight years demonstrates the consistency of what we do and the strength of our products and people. Our recent success is most definitely attributable to this prestigious distinction.
I’m pleased to be working with Sectra on expanding our image storage in a secure environment. The ability to archive both radiology and cardiology images in the cloud allows our providers to retrieve and share images to better collaborate on and coordinate care for our patients.
Implementing a pathology solution on this scale requires integration between several different IT solutions throughout the 50 labs. Sectra’s philosophy and proven track record of implementing standard-based integration is a core strength for us, which makes me extra proud to be part of this unique project.
Poland is a large market where healthcare reforms have been made in order to modernize hospitals. These conditions make Poland an interesting market for us. Opta-Tech’s experience and stable market position makes it an important business partner.
We want to offer an efficient workflow for radiologists and other diagnosticians, and have been looking for a fast PACS with integrated reporting. Sectra's toolbox allows us to work efficiently from a single work spot.
Västerbotten County Council is a good example of the type of healthcare providers that are among the first to adopt digital pathology in the market. They are a geographically distributed region and as such can see an interesting business case for going fully digital in pathology by being able to share digital images rather than sending physical glass slides.
Our group prides itself in being a radiological practice that combines best of breed innovation with a human-centered approach to healthcare. Sectra’s solution, with its track record of extremely high system availability and continuous development, suits us very well. In addition, with Sectra’s solution we will be able to efficiently expand the system to other departments if we want to do so in the future.
Russian healthcare providers are starting to digitize pathology making this an interesting market for us. BioVitrum’s previous experience and network in pathology makes them an important business partner for us. Also, through this addition to our distribution network we can now deliver a solution for integrated diagnostics to this market.
With a vision of contributing to a healthier and safer society, Sectra delivers stable solutions with a high level of availability for some of society’s most critical functions. Both internal and external customer satisfaction surveys confirm that our customers appreciate our efforts. In a recent survey of decision-makers in the North American healthcare market, Sectra once again outranked its competitors. This high level of customer satisfaction and long-term future focus is helping to strengthen our position in Sectra’s niche areas.
Quality is profitable. We delivered a strong financial performance in the second quarter, with continued positive trends with respect to the Group’s sales, operating profit and cash flow—despite the fact that our results were adversely impacted by currency effects, particularly in the UK, and that earnings for the second quarter were charged with long-term investments in future growth areas such as digital pathology and IT security for critical infrastructure. Our investments in these areas are growing as the markets mature, which will have a dampening effect on our earnings trend for the current fiscal year.
Although order bookings for the quarter showed an adequate improvement, we will not be entirely satisfied until our annual growth rate increases further. We are seeing light at the end of the tunnel for the Secure Communications business area, both in terms of the existing crypto business and in the new area of critical infrastructure, where we are experiencing strong market interest.
Healthcare in Africa is entering a phase of modernization. This partnership with Tecmed Africa enables Sectra to be part of that transformation and, based on our extensive experience from markets where similar modernization has taken place, help African hospitals to tackle their challenges.
Sectra’s enterprise image management platform enables healthcare providers that already have a stable archive for radiology images to conveniently expand that existing infrastructure to also capture, store and share other types of medical images. Having medical images in the same system increases efficiency for the IT department and facilitates collaboration across disciplines.
ProMedica and Sectra have a long history of collaboration. The ability to easily access images from both radiology and cardiology will allow us to continue delivering excellent patient care and improve communication between disciplines.
With Sectra, we have found the most efficient enterprise imaging solution for us. The solution will enable our radiologists and physicians to work within the same system regardless of their location, sharing both information and workload. This will create significant progress towards our constant goal of improving patient care.
Sectra has impressed once again with a very high Net Promoter Score among its PACS customers. No one else seems to be engendering this much loyalty. The fact that Sectra can maintain high scores with both IT approaches is unique.
The Sectra IEP deployed throughout Wales has significantly improved the transfer of radiology images. It has facilitated the work of users of all staff grades, many of whom work outside radiology, to request and transfer images in a fast and secure way
A major factor influencing our choice of Sectra PACS is its enhanced efficiency for viewing the entire spectrum of breast imaging studies.
This approval for RESTRICTED is confirmation that the Sectra/Samsung solution meets the highest demands and user needs for security in an environment where new serious threats against smartphones are appearing more and more frequently.
High operational reliability and usability were important criteria in our choice of radiology solution – criteria that Sectra was able to meet. It was also crucial that the solution could be integrated with our existing VNA in order to facilitate joint regional work processes and efficient, region-wide collaboration and information exchange. Our hope is that this will contribute to improved quality and higher productivity in healthcare by providing better access to updated clinical information
Thanks to our cooperation with Sectra, we now have the opportunity to offer a complete treatment chain for this serious disease, from initial risk assessment to follow-up and possibly further examinations and treatment.
We reported a stable first quarter and the key figures for our financial goals remain above our target levels. Order bookings exceeded net sales on an annual basis, but were below the level recorded in the comparative quarter. Order volumes vary considerably between quarters, since individual multiyear customer contracts can be significant in size. Nevertheless, we must keep an eye on this trend. The Group’s sales, operating profit and cash flow increased during the quarter, despite unfavorable currency fluctuations.
We operate in niche markets where there is a growing need for the products and solutions offered by Sectra. Our order bookings are significantly higher than our net sales, and we have a growing number of customers with multiyear managed-services agreements, which provide long-term stability. The Group’s financial position is favorable, and we have several exciting initiatives in the pipeline that we hope will contribute to future growth.
This contract with Premier reflects the success we have had with Sectra DoseTrack over the last three years. Our software flexibility and customizations confirm our ongoing dedication to customer satisfaction.
On course to realizing our vision - with satisfied customers, innovative offerings and achieved financial goals
We have been using Sectra’s solution for quite some time and, with 100% uptimes, it was an obvious choice to extend the contract with Sectra.
“Our Group-financed managed-services agreements for medical IT systems had the greatest impact on the Group’s positive performance in terms of sales, operating profit and cash flow. Several customers with extensive agreements deployed Sectra’s systems in late 2014/2015 and early 2015/2016. This had a positive effect on the performance of the Imaging IT Solutions business area. Managed-services agreements are handled by our financing unit, which has grown more than 60% and is now the Group’s second-largest operation.
I am delighted to announce that we have fulfilled all of the Group’s financial goals, despite the fact that not all areas performed as expected. Please note that a more precise definition has been established for Sectra’s growth goal, since the previous target could be interpreted in different ways. However, both definitions of the growth goal – which is based on operating profit per share – were fulfilled.
Sectra has a strong brand – not only in medical IT, but also in the highly advanced IT security segment. While Imaging IT Solutions performed well, the Secure Communications business area has failed to meet our expectations for several years. We are now refocusing our efforts in this area through the launch of analysis and monitoring services for customers in the energy sector, the largest subsegment within critical infrastructure. Players in this area have significant value that must be protected. Unauthorized data access could result in the loss of human lives, serious injuries, major financial losses or jeopardize the safety of the entire country. Helping customers in the energy sector to protect their control systems is fully in line with our vision of contributing to a healthier and safer society. This new venture is an important part of our ongoing efforts to restore profitable growth in the Secure Communications business area.
With his keen business sense, leadership qualities and understanding of the sector, Simo Pykälistö has the right prerequisites to drive the business area’s growth program, where our focus is on broadening the business area’s offering to new customer segments, primarily critical infrastructure.
Energy and water distribution are areas in which we see an opportunity to contribute to a stable and secure society by leveraging Sectra’s unique expertise in data security and threat analyses. Accordingly, we are expanding our offering in secure communication with security assessments and monitoring services for such operations that are essential to society. These are services that allow customers to make use of the opportunities presented by new technology without increasing their exposure to risks.
To reap the full benefits of the IoT, there’s an obvious need for intelligent security assessments.
For the third consecutive year, Sectra topped its segment in the industry’s most important customer satisfaction survey for IT systems in healthcare. The survey was performed by the analyst company KLAS, and our system for managing medical images, Sectra PACS, was ranked highest in Europe, the US and globally. Sectra was awarded top ratings for the stability and ease-of-use of its system, as well as for its employees, proactive service, high-quality implementation and training. This ranking in the KLAS survey shows that customers have a high level of confidence in Sectra and our ability to help them deliver efficient healthcare of the highest quality.
Order bookings are significantly higher than our net sales, which bodes well for the future since many orders are spread over a long period, and we are growing in all areas. Although we are making progress in all areas, I must emphasize that it is unsatisfactory that we have not succeeded in reversing the earnings trend in Secure Communications. Our ongoing efforts to boost our international sales and broaden the business area’s offering to include new customer segments had a negative impact on profit for the period and were not sufficient to entirely compensate for our declining sales to our principal customer in Sweden. In the long term, these efforts are expected to restore our margins and growth to an acceptable level.
To me, winning both the Global and the US awards for customer satisfaction proves that our consistent strategy to develop medical IT solutions that really make a difference to our customers’ daily work is paying off.
Sectra truly listens to their customers, and that results in innovation and continued training to ensure the product is well maintained and high performing. Over the last few years, the other vendors in this category have failed to react to industry needs and be innovative.