Sectra’s Nine-month Report 2010/2011: Sectra’s mammography business continues to expand
IT and medical technology company Sectra continues to expand and the number of mammography systems delivered rose 50% during the third quarter compared with the corresponding quarter in 2009/2010. However, the performance of the Swedish krona had a negative impact on the Group’s earnings.
“We expanded in Northern Europe and the Group’s sales for the nine-month period increased in line with our growth target of 15%,” says Jan-Olof Brüer, President and CEO of Sectra AB.
For the nine-month period, net sales rose 15.1% to SEK 682.6 million (592.9) compared with the corresponding period in the preceding year. Operating profit for the period amounted to SEK 1.8 million (14.0), corresponding to an operating margin of 0.3% (2.4). The result after net financial items was a loss of SEK 9.7 million (profit: 7.0). Exchange-rate fluctuations had a negative impact of SEK 12.4 million (neg: 4.5) on the Group’s financial items.
For the third quarter, the Sectra Group’s net sales rose 13.9% to SEK 229.1 million (201.2). Operating loss was SEK 5.9 million (loss: 2.5), corresponding to an operating margin that was negative 2.6% (neg: 1.2). The loss after net financial items for the quarter amounted to SEK 12.1 million (profit: 2.6).
“Since we do not hedge currency flows, exchange-rate fluctuations have a direct impact on our earnings. The stronger Swedish currency had a negative effect on the earnings for the period, but we maintain a strong cash balance and balance sheet,” says Jan-Olof Brüer.
In its Medical Systems business area, Sectra entered the Canadian mammography market when Canada Health approved sales of Sectra MicroDose. Canada is an expanding market, where the transition from analog to digital mammography began only recently. The approval has already resulted in an order for four mammography systems from Trillium Radiology Associates’ private diagnostic imaging facilities in Toronto and Mississauga, which is evidence of the importance of low radiation doses for customers in North America.
“Approval was obtained a little earlier than we had expected and, combined with the quick order, it means that women in Canada now can be offered lowest-dose mammography examinations,” says Jan-Olof Brüer.
In the Secure Communications Systems business area, order bookings were strong during the third quarter.
“The debate on information leaks has resulted in increased interest in security. More authorities are reviewing their needs for secure communications solutions and we have received several important orders, nationally and internationally,” says Jan-Olof Brüer.
The information in this press release is such that Sectra AB (publ) is obligated to disclose in accordance with the Swedish Securities and Clearing Operations Act. The information was submitted for publication on March 8, 2011, at 8:00 a.m. (CET).
For further information, please contact:
Dr. Jan-Olof Brüer, CEO and President Sectra AB, tel +46 13 23 52 09
About the Sectra Group
Sectra was founded in 1978 and conducts successful development and sales of high-technology products in the expansive niche segments of medical systems and secure communication systems. Sectra has offices in 12 countries and sells its products through partners worldwide. The head office is in Linköping, Sweden, and the company developed from research at Linköping University. Sales for the 2009/2010 full year amounted to SEK 848 million. Sectra is listed on the NASDAQ OMX Stockholm AB exchange. For more information about Sectra, visit our website at www.sectra.se.
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