Sectra’s nine-month interim report 2009/2010: Major customer projects contributed to increased operating profit

IT and medical technology company Sectra’s operating profit for the nine-month period rose by 37.3% to SEK 14.0 million (10.2), corresponding to an operating margin of 2.4% (1.7). Net sales for the period amounted to SEK 592.9 million (599.5). Profit after net financial items amounted to SEK 7.0 million (64.0) and were negatively impacted by currency effects of SEK 4.5 million (pos: 45.7). The profit margin was 1.2% (10.7). The Group’s order bookings amounted to SEK 669.4 million (942.0).

For the nine-month period, the Medical systems’ business area’s net sales rose 5.4% to SEK 566.1 million (536.9) and the Secure communications systems business area’s net sales increased 10.0% to SEK 72.6 million (66.0). “Despite a reduction in demand in most markets due to the prevailing economic climate and poor government finances in many European countries, both business areas reported growth for the nine-month period. Our primary growth was in the UK, the Netherlands and Sweden,” says Jan-Olof Brüer, President and CEO of Sectra AB. A number of large customer projects contributed to a rise in operating profit compared with the year-earlier period. One of Sectra’s largest ongoing customer projects is coordinating the management of radiology images and patient information in the public healthcare sector for all of Northern Ireland. During the quarter, the first five of a total of 25 hospitals began deploying Sectra’s system. The project is one of the most extensive IT installations in the healthcare sector in Europe. For the third quarter, the Sectra Group’s net sales amounted to SEK 201.2 million (226.1). An operating loss of SEK 2.5 million (profit:1.4) was recognized. Results were negatively affected by increased depreciation of Group-financed customer projects and on development projects pertaining to Sectra’s new generation of radiological IT systems, which will begin to generate revenues in pace with rising sales. Profit after net financial items for the third quarter was SEK 2.6 million (15.8), corresponding to a profit margin of 1.3% (7.0). Currency fluctuations impacted the Group’s financial items in the amount of SEK 4.9 million (11.5) as a result of the SEK weakening against the USD during the quarter. The Group’s order bookings rose 10.9% to SEK 240.6 million (217.0). “In an effort to improve our profit margins, we are continuously working to adapt our operating expenses to the prevailing economic situation. Operating expenses were also reduced as a result of efficiency enhancements related to the completion of major development projects,” says Jan-Olof Brüer. The information in this press release is such that Sectra AB (publ) is obligated to disclose in compliance with the Swedish Securities and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was submitted for publication on March 16 at 08:30 a.m. (CET).

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