LINKÖPING, Sweden, Nov. 29, 2019 /PRNewswire/ -- Demand for the
international medical imaging IT and cybersecurity company
Sectra's (STO: SECT B) products increased and record-high
order bookings were reported for the most recent 12-month period. A
significant number of the orders pertain to long-term projects with
new customers. In line with what has been previously stated, these
projects had a negative impact on cash flow and earnings during the
first half of 2019/2020. The projects' earnings and cash flows will
improve as the systems are gradually put into service during the
coming six months and onwards.
Six-month period, May-October
2019
- Order bookings increased 4.3% to SEK
664.4 million (637.2).
- Net sales increased 14.1% to SEK 696.1
million (609.9). Adjusted for currency fluctuations, sales
increased 11.3%.
- Operating profit totaled SEK 72.0
million (80.6), corresponding to an operating margin of
10.3% (13.2). Adjusted for currency fluctuations, operating profit
decreased 14.9%.
- Profit before tax amounted to SEK 75.6
million (86.5).
- Cash flow after changes in working capital amounted to
SEK 81.2 million (100.4).
Second quarter, August-October
2019
- Order bookings increased 21.4% to SEK
425.7 million (350.7). Of the order bookings during the
quarter, 25% were recognized as revenue during the quarter and 24%
to 34% pertain to revenue within 12 months after the end of the
quarter.
- Net sales increased 14.9% to SEK 363.3
million (316.2). Adjusted for currency fluctuations, sales
increased 12.0%.
- Operating profit totaled SEK 42.7
million (45.0), corresponding to an operating margin of
11.8% (14.2). Adjusted for currency fluctuations, operating profit
decreased 8.2%.
- Profit before tax amounted to SEK 44.9
million (52.7).
- Cash flow after changes in working capital amounted to
SEK 109.2 million (84.5). Sectra
distributed SEK 172.6 million (171.5)
to shareholders through a redemption program.
Torbjörn Kronander, President and CEO of Sectra AB,
comments
"To summarize the first half of 2019/2020, more and more
customers around the world are choosing Sectra's products and
services. Our goal is to maintain this trust by helping customers
give their patients better, more efficient care and increasing
cybersecurity in critical social functions.
"The increase in order bookings during the period is primarily
connected to Imaging IT Solutions, which for the first time
exceeded SEK 2 billion on a rolling
12-month basis. Sectra's medical imaging solutions are
comprehensive, personnel-intensive installation projects, and the
period involved a build-up of delivery capacity to manage the large
number of order bookings over the last year. These projects
initially entail major costs, and only a small portion can be
recognized as revenue for work in progress during the installation
phase. As they transition into the operational phase, however, they
will generate multiyear revenue streams with healthy margins. As we
have stated previously, the investment-heavy first half of the year
was in line with our plans and the costs will gradually shift into
revenue and positive cash flow during the second half of
2019/2020.
"We are continuing to invest in future areas with significant
growth potential. One of these areas is digital pathology, where we
are growing within the European market, which has started to gain
momentum. In the US, customers can currently only use our pathology
solution for secondary review, since we still don't have FDA
approval for primary review. For digital pathology, the FDA
requires a complete chain consisting of scanner, IT system and
monitor. To achieve this, we have initiated a collaboration with
Leica Biosystems, a leading supplier of digital pathology scanners
and other equipment, and in November Sectra submitted an
application to the FDA based on Leica's scanner."
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: November 29, 2019 at
10:00 a.m. (CET).
Follow online via investor.sectra.com/q2report2019 or
call:SE +46850558356
UK +443333009261
US +18338230586
A recorded version will also be available 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 November 29,
2019.
For further information, please contact:
Dr. Torbjörn Kronander
CEO and President Sectra AB
+46-(0)-705-23-52-27
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/sectra/r/sectra-s-six-month-interim-report-2019-2020--imaging-it-solutions--order-bookings-exceed-sek-2-billi,c2974304
The following files are available for download:
https://mb.cision.com/Main/1263/2974304/1152256.pdf
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Sectra Q2 interim
report 2019/2020 PDF
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https://news.cision.com/sectra/i/sectra-pathology,c2721120
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Sectra
pathology
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https://news.cision.com/sectra/i/torbjorn-kronander--president-and-ceo-of-sectra-ab,c2721119
|
Torbjörn Kronander,
President and CEO of Sectra AB
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