2008-08-20 Ortivus interim report Jan-June 2008
• Turnover amounted to SEK 66.5 million (80.6).
• Operating income amounted to SEK -43.5 million (-13.0).
• The operating income has been charged with depreciation amounting to SEK -30.0 million related to the German subsidiary. Excluding this depreciation, the operating profit amounted to SEK -13.5 million (-13.0).
• Earnings after tax were SEK -42.3 million (-12.8).
• Profit per share before and after dilution amounted to SEK -2.04 (-0.62).
Important events which occurred after the report period
• Ortivus sells German subsidiary.
• Decision to introduce share price related incentive program for parent company employees.
SUMMARY OF THE SECOND QUARTER 2008
During the second quarter net sales decreased with MSEK 12,1, primarily due to changed market conditions in England, lower sales in Sweden and currency exchange effects related to the weaker dollar. During the period, work continued on the cultivation of the markets outside of the Nordic region for CoroNet and MobiMed together with our industrial partners. In Italy, our partner received an important CoroNet order of approximately MSEK 1 from a specialist centre for cardiac rehabilitation. A co-operation with the Swiss medtech company Schiller was presented at the European Fair on Emergency Rescue and Mobility (Rettmobil) in Germany. The joint solution, which stirred considerable interest, connects Mobimed wirelessly with Schiller's defibrillator. At the end of May, Ortivus' partner Fujitsu pulled out of the English IT project NHS Connecting for Health (CfH). It is difficult to say how Ortivus will be affected by this, since there is yet no plan for the continued implementation of the CfH-project. With MobiMed and our long-term presence, we are however well positioned for the new possibilities we believe will arise in England in the future.
In Germany, the MobiMed reference project in Neuss is running according to plan. The Ortivus solution will there contribute to swifter handling of cardiac arrest patients in demand of acute PCI treatment.
The number of CoroNet and MobiMed tenders in Sweden has been limited lately, which has led to lower sales during the quarter. During the quarter, St Göran Hospital in Stockholm signed a contract for further installation of CoroNet.
The dominating segment ambulance care continues to develop positively within the North American operations. For the minor segment, Police/Fire services, characterised by software projects with long lead times, orders received have been low. The development efforts regarding the new system platform continues, which creates a strong foundation for the continued marketing and sales of the North American products.
In order to strengthen liquidity, a loan of MSEK 25 was taken from some of the company's larger shareholders. Jan B Andersson, with experience from Medtech as well as IT companies, was recruited as CEO with the mission to actively improve Ortivus market position. Jan B Andersson comes most recently from TietoEnator where he managed all Healthcare operations in Scandinavia. Jan B Andersson took up his position on August 11 2008. An extraordinary general meeting approved a warrant program for the company’s management. The program encompasses 500,000 warrants, and was fully subscribed for.
For further information
Jan B Andersson, CEO, phone +46 705 294 741, or E-mail; firstname.initial.lastname@ortivus.com
Håkan Cranning, CFO, phone 08-446 45 00 alt. mobile +46 73-834 46 18, or E-mail; firstname.lastname@ortivus.com
Also visit www.ortivus.com