First quarter interim report, May - July 2004: Weak start to Sectra's fiscal year

First quarter interim report, May - July 2004: Weak start to Sectra's fiscal year Sectra reports net sales of SEK 79.4 million (96.0) for the first quarter. Profit after net financial items amounted to SEK 3.3 million (12.2), corresponding to a profit margin of 4.2% (12.7). Earnings per share amounted to SEK 0.07 (0.25). "We had a weak start to the fiscal year, with earnings that were also affected by increased costs resulting from our large investments in the mammography market," says Jan-Olof Brüer, President and CEO of Sectra AB. Comparable profit after net financial items excluding Mamea Imaging AB amounted to SEK 11.4 million (12.9), corresponding to a profit margin of 14.3% (12.7). There is major growth potential in the mammography area and Sectra aims to become a leading supplier in this market. In 2-4 year's time, Sectra's goal is that the mammography operations will account for a substantial part of the overall business. During the quarter, Sectra signed a seven-year agreement with Dr. Gray's Hospital in Elgin, Scotland, for the digitization of the hospital's radiology operations. The agreement is for Sectra's integrated IT solution, which includes a radiological information system (RIS) and systems for processing and archiving of radiology images (PACS). This is the first time that Sectra has sold RIS outside Scandinavia. "Since the structure of the UK and Scandinavian healthcare sectors is very similar, the requirements imposed on RIS are also similar. Accordingly, we can now also offer RIS to the UK market and thus satisfy the demand of the British healthcare providers for an integrated IT solution for radiology," says Jan-Olof Brüer. Following the close of the quarter, Sectra concluded an agreement with Dutch authorities regarding a national adaptation of Sectra's Tiger XS security terminal to the country's security requirements. This marks a breakthrough for Tiger XS in the European market for defense and public authorities. "Our mobile communications system Tiger is designed in such a way that it can be adapted to new markets. Many countries have special national requirements for the protection of sensitive information and with Tiger XS, our new security terminal, we provide a cost-effective way of satisfying these requirements", says Jan-Olof Brüer. Sectra's operations Sectra has its roots in Linköping Institute of Technology and is one of Sweden's fastest growing high-tech companies in IT. Since the mid-1980s, Sectra has successfully conducted development and sales of advanced medical IT and telecommunications products. Today, the business includes products in medical systems and secure communication systems. Business is conducted in eight countries with a total of 350 employees. Sales for fiscal year 2003/2004 amounted to SEK 495 million. Since March 1999, Sectra's shares have been quoted on the O list of Stockholmsbörsen (Stockholm Exchange). ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/09/07/20040906BIT21340/wkr0001.pdf First quarter report, full version