Nine-month interim report 2012/2013: Sectra increases order bookings and improves earnings
The IT and medical technology company Sectra (STO: SECT B) reported a strong third quarter of the 2012/2013 fiscal year, compared with the year-earlier period. Order bookings rose 77% to SEK 232.9 million (131.5). Net sales increased 4% to SEK 205.2 million (196.1) and operating profit was up 290% to SEK 21.1 million (5.4). The results correspond to an operating margin of 10.3% (2.8).
“Our positive earnings trend is primarily the result of our Medical Systems business area reducing the share of hardware sales to the benefit of increased sales of software licenses and services, which contributed to a higher operating margin. Accordingly, on a rolling 12-month basis, we achieved an operating margin of 11.8%,” says Torbjörn Kronander, President and CEO of Sectra AB.
For the nine-month period, Sectra’s net sales rose 2% to SEK 568.9 million (554.6) and the operating profit increased 52% to SEK 48.2 million (31.7). The result corresponds to an operating margin of 8.5% (5.7). The exchange and interest-rate trend had a negative impact on the Group’s net financial items, and profit before tax was SEK 45.4 million (52.6), corresponding to a profit margin of 8.0% (9.5). The comparisons relate to the result in the year-earlier period, excluding a nonrecurring item attributable to the divestment of the MicroDose business.
Despite the continued weak growth in the global economy, and Europe in particular, Sectra’s order bookings for the nine-month period rose 10% to SEK 566.1 million.
“While we have received several strategic orders in recent months, the fluctuations between the quarters are major. In the preceding fiscal year, we ended the year with an exceptionally strong fourth quarter, but in the current year we expect to close on a more normal note,” says Torbjörn Kronander.
Sectra’s growth strategy primarily involves expanding in the markets in which the company already has an established position, such as northern Europe and North America, and through business partners in specially selected growth markets.
After the third quarter, Sectra signed a multi-year agreement with the UK-based care consortium Salisbury, Wight and South Hampshire Domain NHS Trust.. The order pertains to a region-wide IT solution for the effective management and communication of medical images.
The information in this press release is such that Sectra AB (publ) is obligated to disclose in compliance with the Swedish Securities and Clearing Operations Act. The information was submitted for publication on March 5, 2013, at 8:00 a.m. (CET).
For further information, please contact:
Dr. Torbjörn Kronander, CEO and President, Sectra AB, +46 (0) 705 23 52 27
Press photos: http://flickr.com/photos/sectramedicalsystems
About the Sectra Group
Sectra was founded in 1978 and has its roots in Linköping University in Sweden. The company’s business operation includes cutting-edge products and services within the niche segments of medical IT and secure communication. Sectra has offices in 12 countries and operates through partners worldwide. Sales in the 2011/2012 fiscal year totaled SEK 823 million. The Sectra share is quoted on the NASDAQ OMX Stockholm exchange. For more information, visit www.sectra.com.