INTERIM REPORT Q2 2009
(NGM:SCN)
April-June 2009 in brief for the SCN group
• Net sales for the period amounted to MSEK 7.0
• EBIT amounted to MSEK -11.3
• Loss for the period amounted to MSEK -4.8
• Earnings per share, basic and diluted, amounted to SEK -0.31
• New distribution contracts signed for thin400, Immulina and Coldizin, adding new markets in Europe
• New Board Member elected: the Norwegian investor Tore Eiklid
• Directed share issue decided by the Board increasing equity with 3.7 MSEK
January-June 2009 in brief for the SCN group
• Net sales for the period amounted to MSEK 18.5
• EBIT amounted to MSEK -17.8
• Profit for the period amounted to MSEK 4.2
• Earnings per share, basic and diluted, amounted to SEK 0.25
Comments by CEO Ulf Söderberg
“As I projected in my latest statement, the first half of 2009 has been a challenging time for SCN. As many other companies, we have been struggling with a very difficult financial situation, and we must continue to ensure that SCN comes out of the global financial crisis stronger than when it came upon us.
In order to accomplish this, we are working in line with the action plan which was communicated during Q1. So far things are going according to plan, and during Q3 and Q4 our continuous cost reductions and the measures taken to improve the company’s cash situation and overall financial situation will continue to show results. Examples of measures taken are the transaction where we used parts of our shareholding in Scandivir to convert debts and the share issue intended to strengthen the company’s equity base and financial situation, both of which were carried out during Q2. The interest-bearing debts have decreased by 52 percent since year end 2008 and amounted to MSEK 25 at the end of the second quarter. Another example is the agreement with Hirapharm, where they took over a non-core distribution agreement against a cash consideration, enabling SCN to further reduce our debt. We have also reduced our overhead expenses, consisting of personnel costs and other external costs, with approximately 45 percent compared to the same period 2008.
However, we have not only been working with reducing costs and debts. The key to future profitability is increasing revenue, and this is the other key objective of the action plan. During Q2 our latest product, thin400, has been successfully launched in Norway and Finland, success stories which we hope to be able to repeat during Q3 and Q4 in the other countries where we have signed contracts.
Given the facts above, I am optimistic about the future in spite of the current situation. SCN has assets with great potential, both in terms of products and people. We have a strong team of dedicated members of management, and our Board was recently strengthened through the election of the Norwegian investor Tore Eiklid who I am very glad to welcome to SCN. We are all intent on securing a positive future development, and on doing what it takes to make that happen.”
(For full report se attached file.)