Interim report January – June 2006
Continued Sales Growth and Internationalization
• Sales soared 91% to MSEK 111.7 (58.4), a 34% increase for comparable units.
• Operating loss as expected, MSEK 13.7 (-5.3).
• Loss after tax totalled MSEK 11.7 (-2.0).
• Loss per share was SEK 0.85 (-0.14).
• Operating result for the twelve-month period is expected to be negative, though better than 2005.
• Ortivus was selected to be a provider in Great Britain as part of one of the world’s biggest healthcare IT initiatives.
• Secures market-leading position in cardiology monitoring systems in Sweden.
• Several new distribution agreements signed; in line with internationalization strategy.
Important events after the reporting period
• Rights issue 28% oversubscribed and successfully completed.
Summary of the second quarter 2006
The Company continued to pursue its international expansion initiatives during the second quarter. Interest in the company’s products is great in several European markets and distribution agreements were signed in Greece, Spain, and the Netherlands. Additional distribution agreements are expected during the upcoming quarter. The accelerated product development, mainly for MobiMed and CoroNet, continued during the second quarter, with a gradual reduction to normal levels expected during the second half of the year.
As was previously announced, Fujitsu chose Ortivus as a “Preferred Supplier” of ambulance applications within the framework of ”Connecting for Health,” Great Britain’s large government healthcare IT initiative and one of the biggest healthcare IT projects in the world. The agreement is for MobiMed Electronic Patient Record (ePR) and includes software, training, service, and support for electronic medical records for an estimated 800 ambulances. Fujitsu is in the process of simplifying its extremely complex agreement structure for subcontractors and therefore the work of formulating the remaining commercial terms of the agreement has been somewhat delayed.
Prospects for the German market have changed radically in just a short time. The major players are fighting for market share, causing end customer prices to plummet and, along with them, gross margins. Nevertheless, the Company’s growth in volume in the German market is good and is expected to be at least in line with general market growth within its areas of application.
CoroNet continued to achieve new successes and the company won a very important order from Uppsala University Hospital, initially for MSEK 6.1. Shipment will begin during the third quarter.
In order to implement its proactive campaigns the company’s short- and long-term capital requirements were ensured by the now essentially concluded new share issue, which brought an injection of capital of about MSEK 173 before share issue expenses. For more information about the issue, please see PDF-file ”Full report”.
Future reporting dates:
January – September will be published on November 7, 2006
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
E-mail: mikael.strindlund@ortivus.com
Please also visit: www.ortivus.com