Interim report for the first half of the year, May – October 2007: Continued international expansion contributes to higher earnings in second quarter

Sectra’s net sales during the second quarter rose 9.6% to SEK 179.2 million (163.5). Profit after financial items increased 25.6% to SEK 19.6 million (15.6), which corresponds to a profit margin of 10.9% (9.5). Order bookings were up 33.6% during the quarter to SEK 193.0 million (144.5).

Sectra’s net sales for the first half of the year increased by 10.3% to SEK 329.1 million (298.4) compared with the year-earlier period. Profit after financial items rose 11.7% to SEK 23.0 million (20.6), which corresponds to a profit margin of 7.0% (6.9). Order bookings increased 64.2% to SEK 399.4 (243.3).

Sales of Sectra’s medical systems continue to increase internationally. Order bookings in markets outside Scandinavia rose during the first six months by 77% compared with the year-earlier period. During the period, yet another of the largest healthcare providers in the US, ProMedica Health System, signed a multi-year service agreement with Sectra.

“We continue to strengthen our position in key markets, particularly in North America,” says Jan-Olof Brüer, CEO and President of Sectra AB. “This success is confirmed by the fact that several of the largest healthcare providers in the US have entrusted us to supply them with radiology imaging systems.”

The Secure Communications Systems business area experienced positive growth during the first six months. Net sales increased by 39.4% compared with the corresponding period in the preceding year.

“The development efforts and efficiency enhancements we have implemented are now bearing fruit. We have received renewed confidence from both Swedish and European authorities and defense organizations to deliver advanced crypto systems,” says Jan-Olof Brüer.