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Sectra’s interim report May – October 2013: Sectra’s profit grows

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Six-month period

  • The IT and medical technology company Sectra (STO: SECT B) increased its operating profit 59.8% to SEK 43.3 million, corresponding to an operating margin of 11.6%.

  • The Sectra Group’s order bookings amounted to SEK 404.6 million, up 21.4% compared with the year-earlier period.

  • Sectra’s net sales increased 2.8% to SEK 373.6 million.

  • Cash flow after changes in working capital amounted to SEK 50.2 million (67.9).

Second quarter

  • Operating profit rose 27.8% to SEK 29.4 million, corresponding to an operating margin of 14.8%.

  • Order bookings amounted to SEK 156.9 million (217.0).

  • Net sales rose increased 2.9% to SEK 198.3 million.  

Following a strong start to the fiscal year, Sectra’s operating profit continued to grow during the second quarter. Sectra’s target is an operating margin of 15%. Dr. Torbjörn Kronander, President and CEO Sectra AB, comments:

“We have made progress in reaching the target for our operating margin – Sectra reported an operating margin of more than 12% on a rolling 12-month basis. Our largest business area, Imaging IT Solutions, showed a positive earnings trend and, in Secure Communications, we are focusing on activities that will help to restore the business area’s profit levels. The need for secure communication has become highly evident in recent months due to disclosures of extensive eavesdropping in many countries.

“After four consecutive quarters of strong order bookings, the lower figures this quarter were due to several factors, including a less positive market in the US. However, a continued increase in order bookings from healthcare clients was noted in the UK and the Netherlands. A growing proportion of sales is deriving from long-term agreements with customers that purchase medical IT systems as a service. Sectra’s financial strength facilitates this type of business model, which are increasingly significant as a competitive tool and provide security for customers.

“We are working purposefully to increase customer satisfaction by improving our customer service and broadening our product offering with new innovations. It is therefore very satisfying when our efforts to build success for customers are rewarded, such as when we recently received the ‘Best New Radiology Software’ award for Sectra DoseTrack – our new product for radiation dose monitoring – or when we are ranked so highly in customer satisfaction surveys. This is confirmation of the value we deliver and of our customer satisfaction and thus enables us to view the future with confidence.”

Read more in the full interim report enclosed.

Teleconference with President Torbjörn Kronander and CFO Simo Pykälistö

December 10, 2013 at 09:30 a.m (CET). To participate, call:

Sweden: +46 (0)8-505 564 77 UK: +44 203 194 0544 US: +1 855 269 2604

The presentation will be held in English and can also be followed online via:

http://media.fronto.com/cloud/sectra/131210/

A recorded version of the presentation will be available on Sectra’s website under the heading Investor/Financial presentations.

The information in this report is such that Sectra AB (publ) is obligated to disclose in compliance with the Securities and Clearing Operations Act and/or the Financial Instruments Trading Act. This information was released to the media for public disclosure on December 10, 2013, at 8:00 a.m. (CET).


For further information, please contact:
Dr. Torbjörn Kronander, CEO and President Sectra  AB, +46 (0) 705 23 52 27
Pictures: http://flickr.com/photos/sectramedicalsystems

About the Sectra Group
Sectra was founded in 1978 and has its roots in Linköping University in Sweden. The company’s business operation includes cutting-edge products and services within the niche segments of medical IT and secure communication. Sectra has offices in 12 countries and operates through partners worldwide. Sales in the 2012/2013 fiscal year totaled SEK 817 million. The Sectra share is quoted on the NASDAQ OMX Stockholm exchange. For more information, visit www.sectra.com.

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Interim report Sectra Six-month report profit Torbjörn Kronander

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We have made progress in reaching the target for our operating margin – Sectra reported an operating margin of more than 12% on a rolling 12-month basis. Our largest business area, Imaging IT Solutions, showed a positive earnings trend and, in Secure Communications, we are focusing on activities that will help to restore the business area’s profit levels. The need for secure communication has become highly evident in recent months due to disclosures of extensive eavesdropping in many countries.
Dr. Torbjörn Kronander, President and CEO Sectra AB
We have made progress in reaching the target for our operating margin – Sectra reported an operating margin of more than 12% on a rolling 12-month basis. Our largest business area, Imaging IT Solutions, showed a positive earnings trend and, in Secure Communications, we are focusing on activities that will help to restore the business area’s profit levels. The need for secure communication has become highly evident in recent months due to disclosures of extensive eavesdropping in many countries.
Dr. Torbjörn Kronander, President and CEO Sectra AB
We are working purposefully to increase customer satisfaction by improving our customer service and broadening our product offering with new innovations. It is therefore very satisfying when our efforts to build success for customers are rewarded, such as when we recently received the ‘Best New Radiology Software’ award for Sectra DoseTrack – our new product for radiation dose monitoring – or when we are ranked so highly in customer satisfaction surveys. This is confirmation of the value we deliver and of our customer satisfaction and thus enables us to view the future with confidence.
Dr. Torbjörn Kronander, President and CEO Sectra AB