LINKÖPING, Sweden, Sept. 3, 2019 /PRNewswire/
-- International medical imaging IT and cybersecurity
company Sectra (STO: SECT B) reported growth in
all operating areas during the first quarter. The fastest growth
was reported by the operations in the US, where more customers
chose Sectra's scalable enterprise imaging solution to create a
unified strategy for medical diagnostic imaging and improved
patient care.
First quarter in figures
- Order bookings amounted to SEK 238.7
million (286.5). Of the order bookings during the quarter,
28% were recognized as revenue during the quarter and 26% to 36%
pertain to revenue within 12 months after the end of the
quarter.
- Net sales rose 13.3% to SEK 332.8
million (293.7). Adjusted for currency fluctuations, sales
increased 10.6%.
- Operating profit totaled SEK 29.4
million (35.6), corresponding to an operating margin of 8.8%
(12.1). Adjusted for currency fluctuations, operating profit
decreased 23.3%.
- Profit before tax amounted to SEK 30.6
million (33.7).
- Cash flow after changes in working capital amounted to a
negative SEK 28.0 million
(15.9).
Torbjörn Kronander, President and CEO of Sectra AB,
comments
"After a year of record-high order bookings, we are reporting a
more cautious beginning to 2019/2020. All operating areas are
growing, we are making major investments for the future and we are
following our plans. The orders from last year are now moving into
the product delivery and customer deployment stage, which affected
profit and cash flow for the period. This is particularly true as
we needed to increase our costs (primarily on the personnel side)
to manage these major deployments, yet the orders will not generate
revenue until a later stage. Comprehensive and long-term customer
contracts provide long-term stability, but they also lead to
negative cash flows and major costs during the installation phase.
The increased costs for deployment also meant that we, for the
first time in a long time, did not achieve one of our financial
goals during the quarter. Five-year growth in EBIT per share ended
the quarter at 44% (the goal is 50%). When the installation phase
is over, the costs will be replaced by revenue and positive cash
flows for a long time to come."
"Within the Imaging IT Solutions operating area, the US is
currently one of our fastest-growing markets. During the quarter,
we received orders from new customers, including the Vanderbilt
Medical Center, one of the most famous hospitals in the US. We also
completed the installation at Stanford Health Care, a prestigious
order that we received one year ago. Sectra's high levels of
customer satisfaction and long-term work are strengthening our
position, and the US has now outgrown Sweden as the Group's largest market in terms
of sales."
"As for our security operations, we acquired the assets of the
Swedish IT security company Columbitech AB and shares in its US
subsidiary during the quarter. The acquisition is in line with our
strategy to expand primarily through organic growth, supplemented
by acquisitions that strengthen this organic growth. The
acquisition will establish Secure Communications in the US, while
also strengthening our expertise and complementing the operating
area's cybersecurity products."
For further CEO comments and information, see the attached
interim report.
Presentation of the interim report
A presentation will be held by Torbjörn Kronander, President and
CEO of Sectra AB, and Mats Franzén, CFO of Sectra AB. The
presentation will be held in English.
Time: September 3, 2019 at at
10:00 a.m. (CET).
Follow online via sectra.com/q1report2019 or call:
SE +46851999383
UK +443333009034
US +18335268380
A recorded version after the conference will also be available
via this link after the conference.
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. (CET) on September 3,
2019.
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 2017/2018 fiscal year totaled SEK 1,267 million. The Sectra share is quoted on
the Nasdaq Stockholm exchange. For more information, visit
www.sectra.com.
For further information, please contact:
Dr.
Torbjörn Kronander
CEO and President Sectra AB
+46 (0) 705-23-52-27
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The following files are available for download:
https://mb.cision.com/Main/1263/2893597/1099392.pdf
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Sectra's three-month
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Torbjörn
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SOURCE Sectra