Sectra’s year-end report for fiscal year 2004/2005 ended April 30, 2005: Sectra reports sharp increase in order bookings

Sectra’s order bookings for the full fiscal year rose by 52.0% to SEK 570.1 million (375.1). Sectra’s profit after net financial items for the full fiscal year increased to SEK 81.7 million (27.6), corresponding to a profit margin of 17.9% (5.6).

Excluding the acquired operations in Sectra Mamea AB, Sectra reported an increase of 19.0% in profit for comparable units, to SEK 117.0 million (98.5). Earnings per share rose to SEK 1.49 (0.63). Net sales for 2004/2005 totaled SEK 455.9 million (495.3). Fourth quarter order bookings amounted to SEK 180.5 million (109.5), representing a year-on-year increase of 64.8%. Profit after net financial items for the quarter amounted to SEK 25.4 million (loss: 33.1), corresponding to a profit margin of 18.2%. “This is the third consecutive quarter that we have been able to report increased order bookings. A growing number of countries have an increased demand for the systems and products that we develop and our niche markets are continuing to grow,” says Jan-Olof Brüer, CEO and President of Sectra AB. Within Medical Systems, Sectra’s successful alliances with global and local partners have contributed to a 30% increase in the number of Sectra’s digital radiology systems installed during the fiscal year. The highest number of installations was in the US. “We have continued to grow our international sales within medical systems. The lower sales figure overall is mainly due to a decline in the number of large digitization projects at radiology departments in Scandinavia and because our international sales of secure communication systems have not yet reached expected levels,” says Jan-Olof Brüer. Sectra’s mammography operations have progressed from the development stage to industrial production. The company’s new production unit for digital mammography systems was inaugurated by Swedish Prime Minister Göran Persson during the fourth quarter. Sectra’s mammography systems have attracted substantial market interest and orders were received during the quarter from hospitals in Kalmar, Västervik and Oskarshamn. “We have sold our digital mammography systems in Sweden, Germany and Ireland during the fiscal year, serving as proof that our investment to introduce our system in Northern Europe is starting to yield results,” says Jan-Olof Brüer. Sectra’s primary focus within secure communication systems during the fiscal year was on increasing sales in international markets, which has resulted in new customers in markets such the Netherlands and the UK. “Our focus on new markets within secure communication systems entails an initial cost increase but has the potential to become profitable within two to three years and yield a good return in the longer term. With adaptable products and strong core competence within encryption, we have favorable opportunities to continue to grow in the European market,” concludes Jan-Olof Brüer.