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Sectra’s three-month interim report 2023/2024: Record-high order bookings

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Press release – Linköping, September 5, 2023 – International medical imaging IT and cybersecurity company Sectra’s (STO: SECT B) contracted order bookings exceeded SEK 2.9 billion during the quarter. Demand for the company’s customer offerings in both medical imaging IT and secure communication contributed to this historically high level for a single quarter. Net sales and recurring revenue are growing. Currency movements continued to have an advantageous effect on the company’s financial outcome and dampened the impact of ongoing investments in the transition to service sales and cloud-based deliveries. During the quarter, several hospitals deployed Sectra’s cloud services for medical diagnostic imaging and one of the largest hospital chains in the US ordered these services.

First quarter (May–July 2023) in figures

  • Contracted order bookings rose 32.9% to SEK 2,970.0 million (2,235.4), of which SEK 344.4 million (705.3) pertained to guaranteed order bookings. Of the guaranteed order bookings, 28% were recognized during the quarter and a further 31–41% are deemed to pertain to revenue within 12 months after the end of the quarter.
  • Net sales increased 20.6% to SEK 583.7 million (484.1). Based on unadjusted exchange rates, the increase was 14.2%. Recurring revenue accounted for SEK 397.2 million (310.4) of net sales, up 28.0%. Based on unadjusted exchange rates, the increase was 21.4%. Cloud recurring revenue (CRR) increased 72.8% to SEK 86.4 million (50.0). 
  • Operating profit rose 7.6% to SEK 69.3 million (64.4), corresponding to an operating margin of 11.9% (13.3). Based on unadjusted exchange rates, operating profit decreased 5.3%. 
  • Profit for the period amounted to SEK 61.6 million (54.1). 
  • Cash flow from operations amounted to SEK -98.3 million (-64.1). 
     

Comments from Torbjörn Kronander, President and CEO of Sectra AB

“The first quarter was characterized by significant trust shown by customers in both secure communication and medical imaging IT. We are experiencing a turnaround in secure communication, with high demand and deliveries. We also passed important milestones in the transition to cloud-based solutions for medical diagnostic imaging. These successes demonstrate the value we provide for our customers and that our long-term initiatives in research and development are paying off.

“All operating areas are showing strong sales growth, which is a result of our desire to have satisfied customers and to offer the latest technology in our areas. I am pleased to report that in the most recent quarter, it was Secure Communications that displayed the strongest improvement. The operating area has achieved a turnaround after a few tough years and the future now looks bright. 

“Sectra’s success is the result of a long-term approach—both to research and development and when it comes to establishing good relationships with satisfied customers who then expand their use of Sectra’s solutions and recommend us to others. The major procurement we secured in the US during the quarter is an excellent example of this. Our relationship began when we developed a solution for ophthalmology imaging that the customer has been using for the past few years. Now that they plan to replace their old system for radiology, they have decided to continue building on a solution and supplier with whom they are satisfied and expand their system to include our services for medical diagnostic imaging, Sectra One Cloud.”

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 Jessica Holmquist, CFO of Sectra AB, will present the financial report and answer questions. The presentation will be held in English.

Time: September 5, 2023 at 10:00 a.m. CEST
Follow live or listen to the recording afterward: https://investor.sectra.com/Q1report2324

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 5, 2023.

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

About Sectra
Sectra contributes to a healthier and safer society by assisting health systems throughout the world to enhance the efficiency of care, and authorities and defense forces in Europe to protect society’s most sensitive information. The company, founded in 1978, is headquartered in Linköping, Sweden, with direct sales in 19 countries, and distribution partners worldwide. Sales in the 2022/2023 fiscal year totaled SEK 2,351 million. The Sectra share is quoted on the Nasdaq Stockholm exchange. For more information, visit Sectra’s website.

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encrypted telephony Sectra secure telephony medical imaging medical IT Torbjörn Kronander

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The first quarter was characterized by significant trust shown by customers in both secure communication and medical imaging IT. We are experiencing a turnaround in secure communication, with high demand and deliveries. We also passed important milestones in the transition to cloud-based solutions for medical diagnostic imaging. These successes demonstrate the value we provide for our customers and that our long-term initiatives in research and development are paying off.
Torbjörn Kronander, President and CEO of Sectra AB.
All operating areas are showing strong sales growth, which is a result of our desire to have satisfied customers and to offer the latest technology in our areas. I am pleased to report that in the most recent quarter, it was Secure Communications that displayed the strongest improvement. The operating area has achieved a turnaround after a few tough years and the future now looks bright. 
Torbjörn Kronander, President and CEO of Sectra AB.
Sectra’s success is the result of a long-term approach—both to research and development and when it comes to establishing good relationships with satisfied customers who then expand their use of Sectra’s solutions and recommend us to others. The major procurement we secured in the US during the quarter is an excellent example of this. Our relationship began when we developed a solution for ophthalmology imaging that the customer has been using for the past few years. Now that they plan to replace their old system for radiology, they have decided to continue building on a solution and supplier with whom they are satisfied and expand their system to include our services for medical diagnostic imaging, Sectra One Cloud.
Torbjörn Kronander, President and CEO of Sectra AB.