Interim Report for Sectra AB for the nine months ended January 31, 2005: Sectra report continued strength in order bookings

Sectra’s order bookings totaling SEK 184.3 million (113.1) for the third quarter of 2004/2005 represent an increase of 63.0% compared with the year-earlier period. Order bookings for the first nine months increased by 46.7% and amounted to SEK 389.6 million (265.6). Sectra reported a profit after net financial items of SEK 56.3 million (60.7) for the first nine months, corresponding to a profit margin of 17.8% (18.3). Earnings per share totaled SEK 1.11 (1.24). Net sales totaled SEK 316.4 million (332.4).

“We report continued strength in order bookings and a strong profit margin for the third quarter,” says Jan-Olof Brüer, CEO and President of Sectra AB. “The somewhat lower profit is mainly attributable to large investments in Sectra MicroDose Mammography, which is the company’s new product for the future.” On the mammography side, Sectra has had success in Ireland where the national breast screening program, BreastCheck, chose Sectra’s image management system. The order also includes the new digital stand for low-dose mammography, Sectra MicroDose Mammography, which is to be evaluated by BreastCheck. Sectra has signed a ten-year agreement with Philips Medical Systems to deliver digital radiology systems to public hospitals in the London region. Philips has been chosen to supply PACS (Picture Archiving and Communication Systems) to this region and the agreement implies that Sectra will be the exclusive subsupplier to Philips. “The agreement with Philips does not entail any guaranteed delivery volumes. However, the British government is committed to increasing the use of IT in healthcare, which makes the UK one of the largest markets for medical IT for the next few years,” says Jan-Olof Brüer. The Dutch authorities have extended their current framework agreement with Sectra to include Sectra’s new secure desktop telephone, Tiger XS Office. “We are focusing on increasing international sales and our new desktop telephone offer defense forces and public authorities a modern replacement for today’s cryptophones,” says Jan-Olof Brüer.