Sectra interim report for May 1998-January 1999

Sectra interim report for May 1998-January 1999 Highlights for the period Group sales reached SEK 111.5 million. Earnings before tax were SEK 4.8 million. New share issue decided January 25, 1999. On January 29, 1999, the Exchange Listing Committee approved Sectra's application to list its shares on the Stockholm Stock Exchange from March 3, 1999. Sectra's operations Sectra AB is an IT company that grew out of research at the Linköping Institute of Technology. Since the mid-1980s, the Company has successfully conducted development and sales of high-technology IT and telecommunications products. Today, the business includes products in the expanding fields of medical image systems, defense communication systems and digital radio systems. Sectra collaborates with customers in each of these markets to develop commercially strong, user-friendly products embodying high technical quality. Income and earnings Historically, the Company's second half is stronger than its first, which is also true this fiscal year. Sales and earnings were better than for the same period one year previous. However, this is the first time the Company has published a nine-month report, so the figures for the corresponding period in 1997 are not fully comparable. Market analysis Our markets are developing in line with expectations and the description published in our listing prospectus for the Stockholm Stock Exchange in February. Several medical image projects in Scandinavia are at the procurement stage. The Swedish national defense continues to take a wait-and-see attitude towards new projects. New generation of medical image products During the third fiscal quarter, the Company worked on completing the development of a new generation of its PACS products. This work proceeded on schedule. The new generation was previewed by an international audience at the world's largest radiology conference, RSNA in Chicago at the end of November. One of the world's fastest encryption systems The communications area also reached a major milestone when the development of a combined SDH/PDH enqryption system for high speed transmission was completed. Using this, an extremely compact and cost-efficient unit, enables secure communication on 2 Mbps, 34 Mbps and 155 Mbps transmission of video, speech and data. Listing on the Stockholm Stock Exchange During the third fiscal quarter, the Company worked towards realizing its long-term goal of becoming a listed company. On January 29, 1999, the Exchange Listing Committee approved the Company's application to list its shares on the Stockholm Stock Exchange's O list. New share issue The Board of Directors of Sectra decided on January 25 to issue 500,000 new series B shares with a par value of SEK 2.50 each at a subscription price of SEK 35 in conjunction with the listing. The decision of the Board was approved by an extraordinary meeting of shareholders on February 15, 1999. Investments Investments in the Group totaled SEK 1.8 million for the period. Investments were mainly attributable to computers and other equipment. Summary Income Statement SEK thousands May- May- Full Year January October 1997/98 1998/99 1998 Net sales 111 485 72 645 162 521 Other operating income 854 - - Change in contracted work in 1 650 662 13 573 progress Operating expenses -107 327 -71 163 -155 205 Depreciation and amortization -2 515 -1 600 -3 696 Operating profit 4 147 544 17 193 Net financial items 653 567 714 Earnings before tax 4 800 1 111 17 907 Tax on earnings for the period -1 422 - 311 -5 039 1 Net earnings 3 378 800 12 868 1 Tax rate: 28% Summary Balance Sheet SEK thousands January October April 30 31 31 1998 1998 1999 Assets Intangible assets 25 50 100 Tangible assets 9 092 8 990 9 762 Total fixed assets 9 117 9 040 9 862 Other current assets 68 135 59 527 55 096 Cash and bank balances 21 877 21 251 13 151 Total current assets 90 012 80 778 68 247 Total assets 99 129 89 818 78 109 Equity and liabilities Equity (including profit for 49 909 47 178 50 531 the period) Allocations 2 973 2 973 2 973 Long-term liabilities 10 479 3 427 2 701 Current liabilities 35 768 36 240 21 904 Total equity and liabilities 99 129 89 818 78 109 Summary Cash Flow Statement SEK thousands January October April 30 31 31 1998 1998 1999 Cash flow from operations 6 053 2 400 17 566 before changes in working capital Cash flow from operations after 6 878 12 300 - 5 598 changes in working capital Cash flow from investing -1 770 -766 - 6 428 activities Cash flow from financing 3 618 - 3434 8 512 activities Change in cash and bank 8 726 8100 - 3 514 balances Cash and bank balances, opening 13 151 13 151 16 665 balance Cash and bank balances, closing 21 877 21 251 13 151 balance Key Data May- May- Full Year January October 1997/98 1998/99 1998 Net sales, SEK thousands 111 485 72 645 162 521 Earnings before tax, SEK 4 800 1 111 17 907 thousands Net financial items, SEK 653 567 714 thousands Profit margin, percentage 4,3 1,5 11,0 1 Earnings per share after tax , 0,34 0,08 1,63 SEK Equity/assets ratio, percentage 50,3 52,5 64,7 Liquidity 2,5 2,5 3,5 1 Based on the average number of shares and standard tax Future reports: June 7, 1999 Preliminary Earnings for 1998/99 Linköping, March 10, 1999 For further information, please contact Sectra AB (publ) Jan-Olof Brüer, President and CEO, telephone + 46 (13) 23 52 00 email job@sectra.se This report has not been examined by the Board of Directors Company's auditors. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/03/10/19990310BIT00080/bit0001.doc http://www.bit.se/bitonline/1999/03/10/19990310BIT00080/bit0002.pdf