Interim report for the nine months, May 2007 – January 2008: Continued international expansion in third quarter
Sectra’s net sales during the third quarter rose 11.8% to SEK 189.3 million (169.4). Profit after financial items amounted to SEK 14.4 million (26.2), which corresponds to a profit margin of 7.6% (15.5). Order bookings were up 67.3% during the quarter to SEK 458.9 million (274.4).
Sectra’s net sales for the first nine months of the year increased by 10.9% to SEK 518.4 million (467.7) compared with the year-earlier period. Profit after financial items amounted to SEK 37.4 million (46.8), which corresponds to a profit margin of 7.2% (10.0). Order bookings increased 65.8% to SEK 858.3 million (517.7).
”We continue to secure major service and support contracts for our radiology imaging systems. Often, these were systems previously maintained by partners. During the third quarter, British Telecommunications plc entrusted us with providing support and maintenance for 25 public hospitals in London,” says Jan-Olof Brüer, President and CEO of Sectra AB.
”These large, long-term contracts result in up-front costs that impact profits during the initial period of the contract. We also have an increasing portion of comprehensive delivery agreements comprising both hardware and software components. Such undertakings yield lower margins than the sale of software licenses alone,” says Jan-Olof Brüer.
In addition to the important London order, Sectra also received additional PACS orders in Europe during the third quarter that are of great strategic value, including an order from the University hospital in Düsseldorf, Germany. International sales have increased dramatically with more than two-thirds of Sectra’s sales now being generated outside Sweden.
Sectra continues to strengthen its position as Europe’s leading supplier of secure voice communications systems, including an order from Hungary in advance of that nation’s EU presidency. The Dutch government also continues to strengthen its cooperation with Sectra, purchasing Sectra’s new Tiger service, which includes Tiger products for secure mobile and fixed voice communications along with operation and security administration of them.
For further information, please contact:
Dr. Jan-Olof Brüer, CEO and President Sectra AB, tel +46 13 23 52 09
About Sectra
Sectra successfully develops and sells cutting-edge products in the expansive niche segments of medical systems and secure communication systems. The company was founded in 1978 and has its roots in the Linköping University in Sweden. Today, Sectra has offices in eleven countries and operates through partners worldwide. Sales in the 2006/2007 fiscal year totaled SEK 673 million. The Sectra share is quoted on the Nordic Exchange in Stockholm. For more
information about Sectra visit http://www.sectra.com.