Interim Report from Sectra AB (publ), for the period May 2001 - January 2002

Sectra report for the nine months ended January 31, 2002: Strongest interim report in Sectra's history Sectra reports increased sales, profit and order bookings during the first nine months of its 2001/2002 fiscal year, compared with the corresponding period in the preceding year. Sales increased 39% amounting to SEK 266.3 million (191.0) while earnings before tax amounted to SEK 39.2 million (19.9). Order bookings rose 53% to SEK 411.1 M (268.3). "It is with pleasure that we present this interim report, which contains the best figures in the Company's history. We have gained the confidence of several new customers and our operations are performing well," says Jan- Olof Brüer, CEO and President of Sectra AB. In the third quarter, order bookings increased 227% to SEK 239.6 million (73.1). Sales rose 45% to SEK 122.1million (84.4), and earnings before tax improved 133%, amounting to SEK 23.3 million (10.0). The market for medical systems is growing rapidly, as hospitals increasingly choose to enhance the efficency of their radiology operations by introducing digital systems. "All of our business areas - especially medical systems but also secure communication systems and wireless technologies - enjoyed sales successes in the third quarter," Jan-Olof Brüer concludes. Sectra began its fourth quarter by recieving its first order for the new digital mammography system, Sectra MicroDose Mammography, from Helsingborgs Lasaretts AB. The first delivery of the system is expected to take place in the autumn in 2002. Sectra has a strong technology platform. The products and systems solutions developed by Sectra target market niches with extensive growth potential both in the Swedish domestic market and internationally. It is the assessment of the Board of Directors that Sectra will continue to expand with favorable profitability. The number of employees continued to increase during the third quarter by six persons, and now amounts to 224. For further information, please contact: Sectra AB, Dr. Jan-Olof Brüer, President and CEO, +46 13 23 52 09, job@sectra.se Visit Sectras website http://www.sectra.com About Sectra Sectra has its roots in Linköping Technical University and is one of Sweden's fastest growing high-tech companies in the IT area. Since the mid- 1980s, Sectra has successfully conducted development and sales of high- technology medical IT and telecommunications products. Today, the business includes products in medical systems, secure communication systems and wireless information systems. Business is conducted in six countries with a total of 224 employees. Sales for the fiscal year May 2000-April 2001 reached SEK 292 million. Since March 1999, Sectra's shares have been quoted on the O list of the Stockholm Exchange. Interim Report from Sectra AB (publ), for the period May 2001 - January 2002 The period in brief (May 2000 - Jan 2001 in parentheses) * Sales increased by 39 % to SEK 266.3 million (191.0). * Earnings before tax rose 97 % to SEK 39.2 million (19.9). * Profit per share equaled SEK 0.85 (0.43). * Order bookings increased to SEK 411.1 million (268.2), up 53 %. The third quarter in brief (Nov 2000 - Jan 2001 in parentheses) * Sales increased by 45 % to SEK 122.1 million (84.4). * Income before tax rose 133 % to SEK 23.3 million (10.0). * Profit per share equaled SEK 0.51 (0.22). * Order bookings increased to SEK 239.6 million (73.1), up 227 %. Significant events during the third quarter * Sales successes for Sectra's digital radiology system in Norway. * New cooperation agreements signed with suppliers of special clinical applications with respect to integrating their products with Sectra's digital radiology system. * The Nordic region's leading supplier of financial information, SIX, unveiled a new mobile financial information service based on the Sectra CitySurfer®. * The Norwegian and German Armed Forces ordered Sectra's eavesdrop- secure Tiger® GSM telephones in connection with NATO approval of Tiger® for NATO-secret communication. Significant events after the end of the period * Sectra received first order for the digital mammography system, Sectra MicroDose MammographyTM, from the Helsingborg hospital in Sweden. * Arendal hospital in Norway ordered Sectra's digital radiology system. * The network operator Digita ordered a new mobile rescue system from Sectra for providing alarm and warning information in real-time to the Finnish rescue service. The order, which in the initial phase covers infrastructure, is an important step in the market for rescue systems. * Sectra strengthens the product portfolio within digital radiology through an acquisition of the operations of the Danish company Pronosco which develops and markets software for diagnosing and monitoring osteoporosis. Market and significant events The market for medical systems is in a strong growth phase and an in creasing number of hospitals are choosing to enhance the efficiency of their radiology operations by installing digital systems. The countries that have advanced furthest in the transition to digital radiology systems are Norway, Sweden, the US and Germany. Today, Sectra has the largest share of installations in Scandinavia and the US (via partners), and market cultivation is also under way elsewhere in Western Europe. During the third quarter, Sectra enjoyed sales successes with its system for digital radiology in Norway. New agreements were signed with Rikshospitalet in Oslo, the Østfold County Council and the Mid-Norway Health region. Total order value for the agreements amounts to about SEK 120 million and encompasses digitization of radiology operations at 15 Norwegian hospitals. Sectra is thus strengthening its position as the leading supplier of film-free radiology systems in the Scandinavian market. Sectra works with open systems enabling other suppliers to integrate their special clinical applications with Sectra's workstations. In connection with the world's largest radiology trade fair, RSNA, held in Chicago in December, Sectra presented several new cooperation agreements with suppliers of special applications, which for example includes tools for 3D images and development of new medical imaging applications. The aim with this type of cooperation is to maximize the benefits of digital radiology systems for Sectra's customers. The first order for the new digital mammography system, Sectra MicroDose MammographyTM, was in February received from the Helsingborg hospital in Sweden. The system is presently undergoing a pilot study at St Göran's hospital in Stockholm, with preliminary results indicating that Sectra MicroDose MammographyTM enables radiation levels to be reduced to one fifth, with maintained or improved image quality. Research institutes in the US will participate in the early clinical analyses of the system. Deliveries of the first series-produced units of the mammography system are projected for 2002. The market for secure communication systems within the defense sector is characterized, both in Sweden and internationally, by increased invest ments in IT systems. In parallel, traditional defense investments decline. In recent months, Sectra noted an increase in the number of inquiries for secure communication systems. During the quarter, Sectra's eavesdrop-secure Tiger® GSM telephone enjoyed international success. NATO approved Sectra Tiger® to be used for the advanced NATO Secret security level. In connection with this approval, both the Norwegian and German Armed Forces ordered Tiger® telephones. The market for wireless information systems is in an early growth phase. The increased mobility among people is driving the development of mobile information services. However, some restraint is perceived, with longer decision processes with respect to investments. During the third quarter, Sectra initiated a cooperation with SIX, which is unveiling a new financial information service based on Sectra's mobile information receiver CitySurfer®. The goal is to establish comparable cooperative arrangements around mobile financial services in other countries. New president at Sectra Communications AB During the quarter, Tommy Waszkiewicz was appointed president of the wholly owned subsidiary Sectra Communications AB, effective February 1, 2002. Sales and earnings The Group's net sales for the reporting period increased by 39 % to SEK 266.3 M (191.0), of which SEK 122.1 M (84.4) relate to the third quarter. Profit before tax rose to SEK 39.2 M (19.9), which indicates that profit for the third quarter amounted to SEK 23.3 M (10.0). Order bookings during the quarter amounted to SEK 239.6 M (73.1) which means that the order bookings increased by 53 % the first nine months to SEK 411.1 M (268.2). Financial position Sectra's equity ratio at January 31, 2002 was 46.5 % (56.2) and liquidity was a multiple of 3.0 (3.9). Interest-bearing liabilities amounted to SEK 73.4 M (37.2), of which SEK 50.8 M (33.0) pertains to convertible debentures. Investments Investments in the Group during the period amounted to SEK 2.3 M (7.2) and pertained mainly to computers and other equipment. Personnel The number of employees increased by 6 persons during the third quarter, bringing the total number of employees at January 31, 2002 to 224. Share data During the quarter, Sectra strengthened its ownership structure with the addition of the large international institution Fidelity. They acquired 1,460,000 Series B shares from eight of Sectra's major shareholders, corresponding to 4.5% of share capital and 2.6% of voting rights in the company. Sectra's share capital at January 31, 2002 was SEK 32,760,945 (32,760,945), distributed among 32,760,945 shares. Assuming full conversion and exercise of issued convertible debentures and personnel options, the number of shares increases to 33,881,845. The Stockholm Exchange has changed the classification of Sectra to Healthcare Equipment and Services, 35101010 according to the Global Industry Classification Standard. Outlook Sectra has a strong technology platform. The products and system solutions developed by Sectra are aimed at markets with a high growth potential. The company's strong position in its domestic market constitutes an excellent platform for continued international expansion. The Board's assessment that Sectra will continue to expand with favorable profitability remains valid. Accounting principles This report was prepared in accordance with the Swedish Financial Accounting Standards Council's recommendation RR20. The accounting principles presented in the 2000/2001 Annual Report are unchanged. Future reports Preliminary year-end report 2001/02: May 22, 2002 Annual General Meeting: June 27, 2002 For additional information please contact: Jan-Olof Brüer, President and CEO Phone: +46 13 23 52 09 E-mail: job@sectra.se Financial Hearing Sectra will present the interim report March 5, 12.00 CET at the Operaterrace in Stockholm. The presentation will be available on the Internet www.sectra.se at 19.00 CET. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/03/05/20020305BIT00030/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/03/05/20020305BIT00030/wkr0002.pdf The full report