Sectra's interim report for the six months ended October 31, 2004: Strong order bookings

Sectra’s order bookings totaling SEK 145.8 million (80.4) for the second quarter of 2004/2005 represent an increase of 81.3% compared with the prior year period. Order bookings for the first six months amounted to SEK 205.3 million (152.5). Sectra reported a profit after net financial items of SEK 33.2 million (36.3) for the first six months, corresponding to a profit margin of 16.7% (17.0). Earnings per share totaled SEK 0.66 (0.72) for the first six months and net sales totaled SEK 198.6 million (213.3).

“We have had extremely strong order bookings during the second quarter,” says Jan-Olof Brüer, CEO and President of Sectra AB. “For example, we have secured several new development assignments from the Swedish Defense Forces, which is an indication that the defense forces are investing in information security for the new defense structure”, he adds. Sectra’s long-term focus on increased international sales within secure communications systems achieved results during the second quarter. This included a contract with the Dutch authorities for a nationally adapted version of Sectra’s Tiger XS security terminal to meet the Netherlands’ security requirements and an order from the UK’s security authorities for Sectra’s new security pouch for mobile telephones. Medical systems are Sectra’s largest business segment and represented 85% of Sectra’s net sales during the second quarter. “The improved earnings are a result of such factors as deliveries and installations delayed since the first quarter have now been completed,” says Jan-Olof Brüer. After the end of the quarter, two private clinics in Germany ordered Sectra’s new digital mammography system. There is major growth potential in the mammography area and Sectra is conducting a long-term effort to become a leading supplier in this market. “We are finding that there is a major interest in our new mammography system. By offering mammography examinations with the lowest radiation dose in the market, combined with excellent ergonomics and high productivity, our customers can enhance the efficiency and profitability of their operations,” says Jan-Olof Brüer.