Interim report for Sectra AB (publ) for the nine months ended January 31, 2006: Strong third quarter

Sectra reported its strongest quarter for the current fiscal year and the best third quarter ever. Net sales in the third quarter rose to SEK 146.1 million (117.7), an increase of 24.1% compared with the corresponding period in the preceding year. Profit after net financial items increased by 19.8% to SEK 27.2 million (22.7). Order bookings for the quarter amounted to SEK 168.7 million (184.3).

For the nine-month period, Sectra’s net sales rose by 23.8% to SEK 391.6 million (316.4). Profit after net financial items amounted to SEK 45.5 million (55.4), corresponding to a profit margin of 11.6%, (17.5). Order bookings for the period increased 8.9% to SEK 424.1 million (389.6). “The quarterly figures for sales and profit were the highest we have ever reported for a third quarter. Successful sales of medical systems contributed to the increase through higher revenues from sales, service and support in all markets,” says Jan-Olof Brüer, CEO and President of Sectra AB. “The profit margin for the nine-month period was affected by our long-term initiatives to strengthen our position in important markets. As previously communicated, we are now in a phase in which we are making significant investments in new sales and support channels,” says Jan-Olof Brüer. During the quarter, Sectra acquired 20% of ImaXperts BV, a Dutch distributor of medical systems. This acquisition was part of the effort to expand the distribution network and service organization for medical systems. In mammography, clinics in Switzerland, Austria, Germany, New Zealand and Sweden ordered the digital Sectra MicroDose Mammography system during the third quarter. “The mammography market is growing rapidly, and revenues from the sale of our digital mammography system are increasing,” says Jan-Olof Brüer. During the quarter, Sectra signed a three-year framework agreement for deliveries of the Tiger XS mobile encryption unit with the Dutch Defense Department. The new contract means that Sectra can deliver Tiger products to the entire Dutch government and defense market. “There is an increasing need for secure communications among European authorities and defense organizations, and we offer cost-effective and flexible products for these customers,” says Jan-Olof Brüer.