Sectra’s three-month interim report 2021/2022: Early deliveries have a positive effect on the period—not expected to affect the full year

Press release – Linköping, September 3, 2021 – International medical imaging IT and cybersecurity company Sectra (STO: SECT B) has significant variations in financial outcomes between periods and its earnings have traditionally been low during the first quarter of the year. This year, some deliveries, primarily in the US, were carried out earlier than planned and operating profit subsequently increased to SEK 90.1 million, which is high for a first quarter. This strong start to the year is not expected to affect the company’s outcome for the fiscal year as a whole. In the long term, the ongoing transition to new business models with cloud services and per-use payments could gradually reduce the variations between quarters.

First quarter in figures, May–July 2021 

• Order bookings amounted to SEK 393.2 million (612.3), down 35.8% from the comparative quarter. Of the order bookings during the quarter, 15.1% were recognized during the quarter and a further estimated 24% to 34% pertains to revenue within 12 months after the end of the quarter.  
• Net sales increased 35.7% to SEK 405.7 million (298.9) compared with the unusually weak outcome for the corresponding quarter in the previous year. Based on unadjusted exchange rates, the increase was 38.8%. Recurring revenue accounted for SEK 253.0 million (220.7) of sales for the quarter, up 14.8%. Based on unadjusted exchange rates, the increase was 16.3%.
• Operating profit rose 228.8% to SEK 90.1 million (27.4), corresponding to an operating margin of 22.2% (9.2). Based on unadjusted exchange rates, operating profit increased 243.0%. 
• Profit before tax amounted to SEK 92.1 million (21.4). 
• Cash flow after changes in working capital amounted to SEK 9.8 million (85.5).

Comments from Torbjörn Kronander, President and CEO of Sectra AB

“We reported an unusually strong first quarter. This outcome was primarily due to two customer projects in the US being delivered ahead of schedule. We do not expect this to have a significant effect on the outcome for the fiscal year. 

“Operations in Imaging IT Solutions have grown quickly in the North American market in recent years, and for the first time, sales in the US exceeded half a billion Swedish kronor for the rolling 12-month period. Our market share in the US is still relatively small, but our reference customers include some of the country’s most prominent and innovative healthcare providers.

“We believe that our possibilities for growth are favorable in all operating areas. However, the pandemic has resulted in increased variation and temporary shifts in markets and product areas. In healthcare, elective (planned) healthcare procedures are starting to be carried out again, and the care debt left by procedures not performed during the pandemic must be addressed. This means that greater productivity, access to new technology and scalability are more important than ever. When it comes to data security, altered ways of working during the pandemic accelerated the rate of digitization throughout society, and it is becoming increasingly clear that society’s infrastructure, authorities, defense departments and healthcare need to be protected from cybercrime—a need that has only grown stronger given recent serious incidents. As a result, we are experiencing increased interest in cybersecurity, both in Sweden and abroad. These trends are global, and are driving underlying growth in Sectra’s niche areas.” 

Read the attached interim report for further CEO comments and information.  

Presentation of the interim report 

Torbjörn Kronander, President and CEO of Sectra AB, and Mats Franzén, CFO of Sectra AB, will present the financial report and answer questions. The presentation will be held in English.

Time: September 3, 2021 at 10:00 a.m. CEST

Follow live or listen to the recording afterward: investor.sectra.com/Q1report2122

This information constitutes information that Sectra AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and/or the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 8:15 a.m. (CEST) on September 3, 2021.

About Sectra
Sectra assists hospitals throughout the world to enhance the efficiency of care, and authorities and defense forces in Europe to protect society’s most sensitive information. Thereby, Sectra contributes to a healthier and safer society. The company was founded in 1978, has its head office in Linköping, Sweden, with direct sales in 19 countries, and operates through partners worldwide. Sales in the 2020/2021 fiscal year totaled SEK 1,632 million. The Sectra share is quoted on the Nasdaq Stockholm exchange. For more information, visit Sectra's website.

For further information, please contact:
Dr. Torbjörn Kronander, President and CEO, Sectra AB, +46 (0) 705 23 52 27

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