Interim report Sectra AB (publ) for the period May - October 2000
12/12/2000 2:53 AM EST
Interim report Sectra AB (publ) for the period May- October 2000
The period in brief (May-October 1999 in parentheses)
* Sales reached SEK 106.6 (79.6) million, up 34%.
* Earnings before tax rose to SEK 9.9 (0.7) million.
* Earnings per share equaled SEK 0.22 (0.05).
* Orders received totaled SEK 195.1 (125.4) million, up 56%.
Significant events in the second quarter
* Sectra's PACS workstation for digital x-rays receives top ranking in an
international scientific evaluation.
* The US Defense department USEUCOM orders Sectra's secure mobile phone
Tiger.
* Sectra introduces CitySurfer, a mobile information terminal and
receives, in connection with this, an order for CitySurfer from the North
American net operator CUE Corporation.
* The international expansion continues and Sectra opens offices in Italy
and Denmark.
Significant event after the end of the period
* Sectra presents a revolutionary digital mammography system based on a
completely new technology. The new system provides the same high image
quality as today's film-based systems at one fifth of the radiation dose.
Markets and product development
Sectra's international expansion has continued during the second quarter
and new offices are being established in Italy and Denmark. Thereby Sectra
has offices in six countries.
In the field of medical systems, Sectra's PACS workstation for digital x-
rays was awarded top ranking and outclassed its competition in an
international scientific evaluation of commercial PACS workstations. The
evaluation covered workstations from all major international PACS vendors.
Sectra also received an order from Gävleborg County Council to complete
digitization of all radiology departments within the County's healthcare
system.
The business within secure communication systems received a strategically
important order when the US Defense Department USEUCOM ordered the GSM-
phone Tiger. During the period Sectra has also sold 300 more Tiger-phones
to the Swedish Defense.
In the field of wireless information systems Sectra introduced its new
mobile Internet product CitySurfer at the Networks Telecom exhibition in
Stockholm in September. In connection with this the American net operator
CUE Corporation ordered CitySurfer. CUE is one of the largest net
operators in the world for transfer of data on the FM band. It's a three-
year agreement and the order value is at least USD 5.7 million.
Sales and earnings
Consolidated sales for the first six-month period increased 34% to SEK
106.6 (79.6) million, putting the figure for sales in the second quarter
at 58.1. Consolidated earnings before tax for the second quarter reached
SEK 3.9 million resulting in an increase for the first six month at 9.9
(0.7) million. Orders received during the quarter totaled SEK 109.9
million, putting the figure for the first half at SEK 195.1 (125.4)
million, an improvement of 56% compared to the same period last year.
Financial position
Sectra enjoys a solid financial position. On October 31, 2000, the Company
had an equity ratio of 56.1% (60.7), and liquidity ratio of 3.0 (3.0). The
Company's interest-bearing liabilities equaled SEK 9.9 (3.0) million.
Investments
Investments in the Group reached SEK 5.9 (1.7) million. Investments were
made in shares in the associated company Mamea Imaging AB and computers
and other equipment.
Bonus issue and share-split
On August 15 2000, Sectra carried through a bonus issue and a share-split
three-to-one that was approved at the annual meeting of shareholders July
5 2000.
The bonus issue, that raised the par value of a share from SEK 2.50 to SEK
3.00, effected an increase in share capital from SEK 5,460,157.50 to SEK
32,760,945.00.
The share-split adjusted the nominal share value from SEK 3 to SEK 1. For
each existing share, two new shares have been issued. After the split
there are 32,760,945 shares in Sectra, of which 2,620,692 are series A
shares and 30,140,253 series B.
Convertible debentures
In accordance with the decision by the Annual General Meeting the
employees, with deviation for the shareholders' preferential rights, have
been offered subscription for convertible debentures in a total maximum
amount of SEK 30 million. Employees showed great interest and 63% have
participated in the program. Assuming full conversion Sectra would have an
additional 327,700 B shares, corresponding to no more than 1.0% of the
share capital and 0.6% of the voting rights. The convertible debentures
mature on July 1, 2003, and have a conversion price of SEK 84.
Employees
On October 31, Sectra had 173 employees, which mean that staff numbers
increased by five during the second quarter.
Outlook
Sectra have a very solid position in several high growth niche markets.
The Company has a strong domestic market position within niches where
Sweden leads the technical development. Based on this the Board of
Directors expects that Sectra will continue to expand while maintaining
profitability.
Future reports
Interim Report May 2000-January 2001:
March 6, 2001
Preliminary Earnings for 2000/2001:
May 29, 2001
Since the mid-1980s, Sectra AB has successfully conducted development and
sales of high-technology medical IT and telecommunications products.
Today, the business includes products in medical systems, secure
communication systems and wireless information systems. Sectra's shares
have been quoted on the O list of the OM Stockholm Exchange since March 3,
1999.
For further information, please contact Jan-Olof Brüer, President and CEO,
ph: + 46 (13) 23 52 00
email:
Linköping December 12, 2000
Sectra AB (publ)
Board of Directors
This report has not been examined by the Company's auditor.