Report on operations 2010

A quarter with record sales concluded a year that set the stage for an increased potential in growth.

Fourth quarter

  • Sales growth was 29 percent (in local currency). Sales amounted to SEK 81 (67) million, corresponding to an increase of 20 percent in SEK. This includes sales of SEK 5 million for the business in San Diego acquired during the fourth quarter.
  • Operating income (EBIT) increased by 28 percent and amounted to SEK 9 (7) million. The operating margin was 11 (10) percent. One-time expenses of SEK 0.3 million regarding the acquisition of Conception Technologies are included. Operating income before research and development costs increased by 9 percent and amounted to SEK 18 (16) million.
  • Income before tax amounted to SEK 11 (7) million. Net income amounted to SEK -1 (11) million, which gave earnings per share of SEK -0.04 (0.56).
  • The operative cash flow was SEK 21 (17) million.
  • Acquisition of products and manufacturing unit from Conception Technologies Inc., San Diego, USA.
  • Launch of new generation of growth factors and cytokines for stem cell cultivation.

The year in brief

  • Sales growth was 17 percent (in local currency). Sales amounted to SEK 298 (275) million, corresponding to an increase of 8 percent in SEK. This includes sales of SEK 5 million for the acquired business in San Diego.
  • Operating income (EBIT) increased by 9 percent and amounted to SEK 33 (30) million. The operating margin was 11 (11) percent. Adjusted for one time-time expenses of SEK 2 million regarding the acquisition of Conception Technologies, operating income increased by 15 percent and amounted to SEK 35 (30) million, corresponding to an operating margin of 12 percent. Operating income before research and development costs increased by 10 percent and amounted to SEK 76 (69) million.
  • Income before tax increased by 32 percent to SEK 41 (31) million. Net income amounted to SEK 29 (34) million.
  • Dividend paid SEK 0.50 (0.40) per share.
  • A collaboration agreement was entered into with Finn-Medi Research Ltd concerning the Stem Cell area.
  • The clinical study on STEEN Solution™ presented good treatment results.
  • Collaboration agreement with University of Melbourne regarding development of stem cell media.
  • Collaboration agreement with the Danish company HertART Aps regarding development of fertility products. Launching is estimated to the first quarter of 2011. A participating interest in HertART Aps was acquired by Vitrolife.
  • Good clinical results from Swemed Sense™ multicenter study presented.
  • New study shows better survival with Perfadex®.

After the end of the period:

  • The Board’s proposed dividend is SEK 0.60 (0.50) per share.

Gothenburg, February 9, 2011

Magnus Nilsson

CEO

Queries should be addressed to:

Magnus Nilsson,  CEO; phone +46 31 721 80 61

Anne-Lie Sveder, CFO, phone +46 31 721 80 13

Vitrolife is a global biotechnology/medical device Group that works with developing, manufacturing and selling advanced products and systems for the preparation, cultivation and storage of human cells, tissue and organs.  The company has business activities within three product areas: Fertility, Transplantation and Stem Cell Cultivation. The Fertility product area works with nutrient solutions (media), cryopreservation products and advanced consumable instruments such as needles and pipettes, for the treatment of human infertility. The Transplantation product area works with solutions and systems to evaluate and maintain organs outside the body in order to select usable organs and keep them in optimal condition while waiting for transplantation. The Stem Cell Cultivation product area works with media and instruments to enable the use and handling of stem cells for therapeutic purposes. Vitrolife today has approximately 220 employees and its products are sold in more than 85 markets. The company is headquartered in Gothenburg, Sweden, and there are subsidiaries in USA, Australia, France, Italy, United Kingdom and Japan. Production facilities are located in Sweden and the USA. The Vitrolife share is listed on NASDAQ OMX Stockholm, Small Cap.
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Vitrolife AB (publ), Box 9080, SE-400 92 Göteborg, Sweden. Corporate identity number 556354-3452.

Tel: +46 31 721 80 00. Fax: +46 31 721 80 90. E-mail: info@vitrolife.com. Website: www.vitrolife.com.

Vitrolife is required to publish the information in this press release in accordance with the Swedish Securities Market Act. The information was submitted for publication on Wednesday February 9, 2011 at 8.30 am.

This is a translation of the Swedish version of the press release. When in doubt, the Swedish wording prevails.

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