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Biotage

Quarterly Report Oct 27, 2009

2894_10-q_2009-10-27_cafa27ba-ef2f-489b-8239-f5b8f279ae6f.pdf

Quarterly Report

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Interim report January-September 2009

October 27, 2009

Third quarter 2009

  • Net sales decreased by 2 percent to 90.6 MSEK (92.3). At comparable exchange rates sales decreased by 13 percent.
  • The operating result amounted to 2.0 MSEK (7.0).
  • The result after tax amounted to 1.4 MSEK (6.6).
  • Earnings per share amounted to 0.01 SEK (0.14).
  • Net cash at September 30, 2009 amounted to 326.6 MSEK.
  • As a part of Biotage's buy-back program 158,779 own shares were repurchased at a total value of 1.1 MSEK, i.e. an average share price of 6.93 SEK.
  • The cash flow from operating activities amounted to 4.5 MSEK (13.0).

January - September 2009

  • Net sales increased by 7 percent to 294.6 MSEK (276.3). At comparable exchange rates sales decreased by 11 percent.
  • The operating result amounted to -13.7 MSEK (10.8). Before restructuring costs the operating result amounted to 7.5 MSEK (10.8).
  • The result after tax amounted to -14.5 MSEK (8.8).
  • Earnings per share amounted to -0.16 SEK (0.38).
  • Net cash at September 30, 2009 amounted to 326.6 MSEK.
  • Dividends to shareholders have been paid to the amount of 17.7 MSEK.
  • As a part of Biotage's buy-back program 158,779 own shares were repurchased at a total value of 1.1 MSEK.
  • The cash flow from operating activities amounted to 21.2 MSEK (10.2).

Group result development in brief

Amounts in MSEK 3 rd quarter
2009
3 rd quarter
2008
Jan-Sep
2009
Jan-Sep
2008
Full year
2008
Oct, 1 2008-
Sep 30, 2009
Net sales 90.6 92.3 294.6 276.3 385.3 403.6
Cost of goods sold -39.4 -38.6 -123.4 -114.4 -160.8 -169.8
Gross profit 51.2 53.7 171.2 161.9 224.5 233.8
Operating expenses -49.2 -46.8 -184.9 -151.1 -202.0 -235.8
Operating profit/loss 2.0 7.0 -13.7 10.8 22.5 -2.0
Financial items -0.3 0.2 0.4 -1.3 5.2 7.0
Profit/loss before tax 1.8 7.1 -13.2 9.5 27.7 4.9
Tax expenses -0.4 -0.5 -1.3 -0.7 3.5 2.9
Profit/loss after tax for continuing operations
1.4 6.6 -14.5 8.8 31.2 7.9
Profit/loss after tax for discontinued operations -0.2 6.2 -0.1 25.2 267.9 242.7
Total profit/loss for the period 1.2 12.8 -14.6 33.9 299.1 250.5

Comments by CEO Torben Jörgensen

Also in the third quarter a decreased demand for scientific instruments and accessories affected the market in large parts of the industry where Biotage operates. It is primarily pharmaceutical and biotech companies that continue to show low activity. There are, however, some positive signs for the future in the form of fewer lay-offs and fewer terminations of research activities among our customers. The start of the fourth quarter also indicates an improved trade outlook, with an increase in the activities of the bigger pharmaceutical companies. Biotage's initiative in the academic sector continues to develop positively, as do the sales of consumables.

It is encouraging that the company, despite the weak economy with decreasing sales and substantial additional costs due to the ongoing patent dispute in the US, still can report a profit also in the third quarter.

The implementation of the structural changes that were decided at the beginning of the year has been completed. The operations at the company's plant in Charlottesville, Virginia, USA, have now been closed down. The production has been relocated to contract manufacturers and to Biotage's own plant in Cardiff, Wales. The sales and marketing company for the North American market has now been established in Charlotte, North Carolina. Now that these changes have been carried out the company should have a significantly more favorable cost structure and less capital bound.

The legal process in the US concerning the lawsuit against Biotage for alleged patent infringement continues. There is currently no reason to reappraise the initial analysis of Biotage's actual position. We continue to believe that we have a strong position and that the opposite party lacks support for the alleged patent infringement. The third quarter is charged with costs for the patent process to the amount of 2.6 MSEK.

As part of the previously decided buy-back program 158,779 own shares have been repurchased at a total value of 1.1 MSEK, i.e. an average share price of 6.93 SEK. Biotage can decide, based on decision at the Annual General Meeting, on the acquisition and sale of the company's own shares, so that

Biotage's total holding of own shares amounts to a maximum of 10 percent (8 848 632 shares) of the total number of the company's shares.

Biotage continues to have a strong financial position with net cash amounting to 327 MSEK. In the third quarter the work aimed at finding suitable candidates for cooperation agreements or acquisitions was further intensified.

Group result, financial position and cash flow

Third quarter 2009

Group net sales amounted to 90.6 MSEK, compared to 92.3 MSEK the third quarter 2008, a decrease by 2 percent. At comparable exchange rates sales decreased by 13 percent.

The US was the biggest single market with 40 percent of the net sales. The EU area contributed 38 percent and the rest of the world 22 percent.

The Group's gross margin was 56.5 percent (58.2). The gross margin has decreased as a result of product mix changes. The high margin instruments have had a negative sales development. The positive effects of the restructuring of the production have only partially influenced the outcome. Increased price competition and non-recurring costs relating to a major deal have affected the gross margin negatively.

The operating expenses, which were negatively affected by exchange rate changes by 10 percent, amounted to 49.2 MSEK (46.8). The increased administration costs are explained by changed allocation of overhead costs and by legal costs due to the patent dispute (2.6 MSEK).

The operating profit amounted to 2.0 MSEK (7.0).

Net financial income amounted -0.3 MSEK (0.2).

The result after tax amounted to 1.4 MSEK (6.6).

Effective July 1, 2009, the company classifies certain receivables from group companies as part of net investments in operations abroad. The reason is that they are not planned to be settled within the foreseeable future. According to IAS 21:32-33, exchange rate differences that occur regarding such a monetary item should be reported in the report of other total result. In the third quarter as well as in the period January – September other total result has been charged with exchange rate differences amounting to -7,6 MSEK.

The investments amounted to 11.5 MSEK (3.6) and amortizations to 7.5 MSEK (7.5). Of these sums, 4.8 MSEK (1.8) were capitalized development costs and 4.1 MSEK (3.7) were amortizations of capitalized development costs.

The cash flow from operating activities amounted to 4.5 MSEK (13,0).

January - September 2009

Group net sales amounted to 294.6 MSEK, compared to 276.3 MSEK the same period 2008, an increase by 7 percent. At comparable exchange rates sales decreased by 11 percent.

The US was the biggest single market, with 41 percent of the net sales. The EU area contributed 39 percent and the rest of the world 20 percent.

The Group's gross margin was 58.1 percent (58.6). Changes in the Group's product mix, with a decrease in high margin instruments, and increased price competition have contributed to a lower gross margin.

The operating expenses, which were negatively affected by exchange rate changes by 12 percent, amounted to 184.9 MSEK (151.1). Here an allocation for restructuring costs for the closing of the production plant in the US and consolidation of the operations in the UK amounting to a total of 21.2 MSEK is included. The increased administration costs are explained by changed accounting principles for the allocation of overhead costs and by increased legal costs due to the patent dispute (3.1 MSEK).

The operating profit before estimated restructuring costs amounted to 7.5 MSEK (10.8). Including estimated restructuring costs the operating result was –13.7 MSEK (10.8).

Net financial income amounted to 0.4 MSEK (-1.3).

The result after tax amounted to -14.5 MSEK (8.8).

The investments amounted to 31.1 MSEK (20.6) and the amortizations to 24.5 MSEK (19.6). Of these sums 17.9 MSEK (13.9) were capitalized development costs and 12.3 MSEK (7.3) were amortizations of capitalized development costs.

The cash flow from operating activities amounted to 21.3 MSEK (10.2).

Balance sheet items

At September 30, 2009 the Group's cash and securities totaled 374.5 MSEK, compared to 405.0 MSEK at December 31, 2008. Granted, unutilized credits amounted to 64.8 MSEK, compared to 73.6 MSEK at December 31, 2008. The Group's interest-bearing liabilities amounted to 47.9 MSEK, compared to 46.9 MSEK at December 31, 2008. Dividends to shareholders to the amount of 17.7 MSEK were paid in the second quarter. Own shares in the parent company were repurchased for 1.1 MSEK.

The Group reports a total goodwill of 467.1 (487.2) MSEK at September 30, 2009. This is attributable to the acquisitions of Personal Chemistry and Biotage LLC in 2003 and the acquisitions of Argonaut and Separtis in 2005. This year's change is due to currency effects. At the preparation of the Group's annual accounts Biotage will, as in previous years, make an assessment of the possible need for a write-down of the goodwill item. (See also Annual Report 2008.)

Other intangible assets in the form of patents and license rights amounted to 13.4 MSEK (16.3) and capitalized development costs to 50.0 MSEK (44.4).

At September 30, 2009 the equity capital amounted to 1,062.2 MSEK, compared to 1,124.8 MSEK at December 31, 2008.

Divested business

In the third quarter the result after tax for divested business amounted to -0.2 MSEK (6.2) and in the period January – September to -0.1 MSEK (25.2). The result relates to the Biosystems business area, which was divested in the fourth quarter 2008.

Biotage plans to divest the real estate that the company owns in Charlottesville and this asset has therefore been classified as an asset held for sale on the statement of financial position.

Major events

Patent dispute in the US

Biotage has, together with the wholly owned subsidiaries Biotage GB Ltd och Biotage LLC, been sued for patent infringement in the U.S. District court for the Southern District of California. The lawsuit has been filed by Scientific Plastic Products, Inc. and concerns the US patents numbers 7,138,061 7,381,327 and 7,410,571, each entitled "Flash Chromatography Cartridge". The lawsuit primarily concerns Biotage's sales of the SNAP product line in the US.

The legal process is ongoing and there is currently no reason to reappraise the initial analysis of Biotage's actual position. Biotage believes that the company has a strong position and that the other party lacks support for the alleged patent infringement.

Biotage has filed an application to the US Patent and Trademark Office applying for re-examination of all patent demands in the three patents mentioned above. At the same time Biotage submitted a request that the infringement case in the court should be declared resting awaiting the outcome of the reexamination proceedings.

The court has approved Biotage's request and declared the infringement case resting. The US Patent and Trademark Office has officially accepted the three requested re-examinations of the patents in question.

Decision to repurchase own shares

At the Annual General Meeting held on April 27, 2009 the board was authorized, up until the next AGM at the longest, to decide on the acquisition and sale of the company's own shares, so that Biotage's total holding of own shares amounts to a maximum of 10 percent (8 848 632 shares) of the total number of the company's shares. The purpose of the buy-back program was to enable the board to adjust and improve the capital structure and thereby create increased shareholder value. Repurchases of shares have been made at the Nasdaq OMX Stockholm exchange at a price within the price interval at the time recorded. In the third quarter 158,779 shares were repurchased at a value of 1.1 MSEK. The average share price at repurchase was 6.93 SEK. No shares have been resold and the company thus owned 158,779 own shares at September 30, 2009.

Human resources

At September 30, 2009 the Group had 257 employees, compared to 292 at the start of the year. The decrease is mainly attributable to the restructuring of the US operations.

Parent company

The Group's parent company, Biotage AB, has wholly owned subsidiaries in Sweden, the United States, United Kingdom, Switzerland, Germany, France, Italy and Japan. The parent company is responsible for group management, strategic business development and administrative functions at Group level towards subsidiaries.

In the third quarter 2009, the parent company's net income amounted to 1.5 MSEK (2.1). In the period January - September the net income amounted to 4.6 MSEK (6.2).

A profit after financial items amounting to 13.5 MSEK (9.6) is reported for the third quarter. In the first nine months profit after financial items amounted to 18.7 MSEK (13.6).

The parent company's investments in intangible fixed assets during the third quarter amounted to 0.1 MSEK (0.4). In the period January – September the investments in intangible fixed assets totaled 0.8 MSEK (1.4). At September 30, 2009 the parent company's cash and bank balance and short-term investments amounted to 346.6 MSEK, compared to 357.0 MSEK at December 31, 2008.

Risks and uncertainties

As an international Group, Biotage is exposed to various risks that affect the possibilities to achieve the established targets. There are operational risks, such as the risk that competitive situations affect price levels and sales volumes, and the risk that the economic development in the markets and segments where the Group operates is not stable. There are also financial risks, such as currency risks, interest risks and credit risks.

No major changes in significant risks or uncertainty factors have occurred during the period. A detailed account of Biotage's risks, uncertainty factors and the handling of these can be found in the company's Annual Report for 2008.

Readers wishing to study the risks and uncertainties reported in the 2008 Annual Report can download this report from Biotage AB's website www.biotage.com or order it from Biotage AB, Kungsgatan 76, SE-753 18 Uppsala or [email protected].

Next reports

The year-end report for 2009 will be issued on February 11, 2010.

The interim report for the first quarter 2010 will be issued on April 29, 2010.

The Annual General Meeting will be held on April 29, 2010.

Uppsala October 27, 2009

Torben Jörgensen President and CEO

For further information, please contact:

Torben Jörgensen, president and CEO, phone: +46 707 49 05 84 Mats-Olof Wallin, CFO, phone: +46 705 93 52 73

This is information that Biotage AB (publ) is required to disclose pursuant to the Swedish Securities Markets Act. The information was provided for public release on 27 October 2009 at 8.30 CET

About Biotage

Biotage offers solutions, knowledge and experience in the areas of analytical chemistry and medicinal chemistry. The customers include the world's largest pharmaceutical and biotech companies, and leading academic institutes. The company is headquartered in Uppsala and has subsidiaries in the US, UK and Japan. Biotage has 270 employees and had sales of 385.3 MSEK in 2008. Biotage is listed on the NASDAQ OMX Nordic Stockholm stock exchange. Website: www.biotage.com

AUDITORS' REPORT

To the Board of Directors of Biotage AB Reg no. 556539-3138

Introduction

We have reviewed this report for the period 2009-01-01 – 2009-09-30 for Biotage AB. The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410 Review of Interim Report Performed by the Independent Auditor of the company issued by FAR. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Auditing Standard in Sweden (RS) and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with the Swedish Annual Accounts Act.

Stockholm 27 October 2009

Deloitte AB

Marcus Sörlander Authorised Public Accountant

Accounting principles

The Group interim report has been prepared in accordance with IAS 34 Interim Reporting and the Swedish Accounting Act. The interim report for the parent company has been prepared in accordance with the regulations of the Swedish Accounting Act.

A great number of changes in existing standards, new interpretation statements and a new standard (IFRS 8) came into effect on January 1, 2009. As far as Biotage is concerned, the following issued standards and interpretation statements which have come into effect on January 1, 2009 have been considered relevant for the preparation of this interim report and its accounting principles:

o IAS 1: Presentation of Financial Statements

The change in this standard means that the income statement shall now also contain items that were previously reported directly against equity. Excepted are transactions with the company's owners, which also in the future normally shall be reported against equity. But items such as gains and losses arising from translating the statements of foreign operations and cash flow hedges shall be reported in the total result for the period. Biotage has chosen to present the Group's total result in a statement containing the period's result (after tax) and other total result. Furthermore, the equity statement shows transactions with the company's owner disclosed.

The changes in IAS 1 also mean that the statements in the financial reports have new designations. Income statement is now called "Statement of comprehensive income", Balance sheet is called "Statement of financial position", Equity statement is called "Statement of changes in equity", and Cash flow statement is called "Statement of cash flows". Even though IAS 1 permits companies to continue using the previous designations, Biotage has chosen to introduce the new designations starting in this interim report.

o IFRS 8: Operating segments

This standard is based on the premise that segment information shall be presented from the perspective of company management. Biotage's segment information in the financial reports was already before based on the information supplied to the chief executive officer (the president). In the financial reports issued in 2008 the Group's business was presented in three segments: "Biosystems", "Discovery Chemistry" and "Other Operations". In the fourth quarter 2008 the Biosystems segment was divested. After the buyer took possession on October 2, 2008, the Group's remaining operations comprise only Discovery Chemistry. The joint functions for the business areas, in the previous segment reporting designated "Other operations", thus no longer exist. No operating segments can now be defined according to the criteria in IFRS 8 and the internal reporting to the CEO is done in unified form for the Group's companies.

In all other respects the accounting principles applied in this interim report agree with the accounting and valuation principles applied in the preparation of the Group's latest Annual Report, described on pp. 30-41 and 46-47 in the 2008 Annual Report.

Readers wishing to study the accounting principles presented in the 2008 Annual Report can download this report from Biotage AB's website www.biotage.com or order it from Biotage AB, Kungsgatan 76, SE-753 18 Uppsala, or at [email protected].

Biotage AB (publ) Interim report 2009-01-01 -- 2009-09-30 STATEMENTS OF COMPREHENSIVE INCOME

2009-07-01 2008-07-01 2009-01-01 2008-01-01 2008-01-01 2008-10-01
Amounts in KSEK 2009-09-30 2008-09-30 2009-09-30 2008-09-30 2008-12-31 2009-09-30
Net sales 90,602 92,308 294,605 276,345 385,295 403,554
Cost of goods sold -39,426 -38,597 -123,378 -114,412 -160,838 -169,804
Gross profit 51,176 53,711 171,227 161,933 224,457 233,751
Selling costs -30,100 -36,528 -100,627 -102,000 -142,266 -140,893
Administative expenses -14,939 -8,799 -45,392 -29,496 -40,753 -56,648
Research and development costs -7,844 -9,013 -24,519 -23,358 -34,646 -35,806
Other operating income/expenses 3,728 7,583 6,774 3,742 15,702 18,734
Restructuring costs - - -21,154 - - -21,154
Operating expenses -49,154 -46,756 -184,917 -151,112 -201,962 -235,768
Operating profit/loss 2,022 6,955 -13,691 10,821 22,495 -2,017
FinanciaL net income -253 152 444 -1,340 5,177 6,960
Profit/loss before income tax 1,769 7,107 -13,247 9,481 27,672 4,943
Tax expenses -385 -522 -1,272 -704 3,498 2,929
Profit/loss after tax for continuing operations 1,384 6,584 -14,519 8,778 31,170 7,873
Profit/loss after tax for discontinued operations -152 6,172 -66 25,165 267,884 242,653
Total profit/loss for the period 1,232 12,756 -14,585 33,943 299,054 250,526
Other comprehensive income
Translation differences related to
non Swedish subsidiaries -38,435 28,204 -32,024 6,645 29,240 -9,414
Change in hedging reserve -267 120 2,783 460 -582 1,741
Other comprehensive income 173 - 977 822 -155
Total other comprehensive income -38,703 28,497 -29,241 8,083 29,480 -7,828
Total comprehensive income for the period -37,471 41,252 -43,827 42,026 328,534 242,697

STATEMENTS OF COMPREHENSIVE INCOME (continued)

2009-07-01 2008-07-01 2009-01-01 2008-01-01 2008-01-01 2008-10-01
2009-09-30 2008-09-30 2009-09-30 2008-09-30 2008-12-31 2009-09-30
Attributable to parent company´s shareholders:
Total profit/loss for the period 1,232 12,756 -14,585 33,943 299,054 250,526
Total comprehensive income for the period -37,471 41,252 -43,827 42,026 328,534 242,697
Average shares outstanding
Average shares outstanding after
88,469,886 88,486,320 88,480,842 88,486,320 88,486,320 88,482,212
dilution 88,469,886 88,630,046 88,480,842 88,643,913 88,541,030 88,502,818
Shares outstanding at closing day 88,327,541 88,486,320 88,327,541 88,486,320 88,486,320 88,327,541
Total profit/loss for the period per share SEK 0.01 0.14 -0.16 0.38 0.35 0.09
Total profit/loss for the period per share SEK
after dilution 0.01 0.14 -0.16 0.38 0.35 0.09
Total comprehensive income for the period
per share SEK -0.42 0.47 -0.50 0.47 3.71 2.74
Total comprehensive income for the period
per share after dilution SEK -0.42 0.47 -0.50 0.47 3.71 2.74
Quarterly summary 2009 and 2008 2009 2009 2009 2008 2008 2008 2008
Amounts in KSEK Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1
Net Sales 90,602 104,411 99,591 108,950 92,308 95,092 88,945
Cost of goods sold -39,426 -41,002 -42,951 -46,426 -38,597 -40,998 -34,817
Gross profit 51,176 63,410 56,641 62,524 53,711 54,094 54,128
Gross margin 56.5% 60.7% 57.4% 57.4% 58.2% 58.2% 60.9%
Operating expenses -49,154 -59,739 -76,024 -50,850 -46,756 -51,411 -52,944
Operating profit/loss 2,022 3,671 -19,384 11,674 6,955 2,683 1,184
Financial net income -253 2,683 -1,986 6,516 152 -738 -754
Profit/loss before income tax 1,769 6,354 -21,370 18,190 7,107 1,944 430
Tax expenses -385 -610 -277 4,201 -522 -157 -24
Profit/loss after tax for continuing operations 1,384 5,744 -21,647 22,392 6,584 1,787 407
Profit/loss after tax for discontinued operations -152 -263 349 242,719 6,172 6,220 12,774
Total profit/loss for the period 1,232 5,480 -21,298 265,111 12,756 8,007 13,180

Biotage AB (publ) Interim report 2009-01-01 -- 2009-09-30 STATEMENTS OF FINANCIAL POSITION

Amounts in KSEK 2009-09-30 2008-12-31
ASSETS
Fixed assets
Tangible assets 41 827 80 978
Goodwill 467 135 487 227
Other intagible assets 63 377 60 731
Financial assets 1 782 1 754
Deferred tax recoverable 42 570 42 570
Total fixed assets 616 691 673 260
Current assets
Inventory 92 719 104 224
Account receivable and other receivables 96 751 100 498
Liquid funds 374 459 404 991
Total current assets 563 929 609 713
Total assets for continuing operations 1 180 619 1 282 973
Assets held for sale 38 095 16 039
TOTALT ASSETS 1 218 714 1 299 012
EQUITY AND LIABILITIES
Capital and reserves attributable to shareholders
in parent comapny
Share capital 88 486 88 486
Other contributed capital 4 993 847 173
Reserves -73 160 -43 920
Profit/loss carried forward 1 041 851 233 054
Total equity 1 062 170 1 124 793
Long term liabilities
Liabilities to credit institutions 7 620 8 065
Provisions of a long-term nature 3 304 3 351
Total long term liabilities 10 923 11 416
Current liabilities
Accounts payable and other liabilities 82 600 95 360
Tax liabilities 2 013 1 869
Liabilities to credit institutions 11 895 38 829
Provisions of a short-term nature 20 742 5 977
Total current liabilities 117 250 142 036
Total equity and liabilities for continuing operations 1 190 343 1 278 245
Liabilities for assets held for sale 28 371 20 767
TOTAL EQUITY AND LIABILITIES 1 218 714 1 299 012

STATEMENTS OF CASH FLOW

2009-07-01 2008-07-01 2009-01-01 2008-01-01 2008-01-01 2008-10-01
Amounts in KSEK 2009-09-30 2008-09-30 2009-09-30 2008-09-30 2008-12-31 2009-09-30
Operating activities
Profit/loss after financial items 1,769 7,107 -13,247 9,481 27,672 4,943
Adjustments for items not included in the cash flow 3,649 7,115 37,796 20,360 21,291 38,728
5,418 14,222 24,549 29,842 48,963 43,671
Tax paid -385 -522 -1,272 -704 -1,494 -2,062
Cash flow from operating activities
before changes in working capital 5,033 13,699 23,277 29,138 47,469 41,609
Cash flow from change in working capital:
Increase (-)/ decrease (+) of inventories 4,393 -1,407 4,044 -6,059 -5,900 4,202
Increase (-)/ decrease (+) of account receivables -3,989 4,303 1,677 5,413 9,833 6,097
Increase (-)/ decrease (+) of other current receivables -8,553 -5,763 -1,568 -4,211 -6,996 -4,354
Increase (+)/ decrease (-) of other liabilities 7,637 2,187 -6,155 -14,077 10,088 18,010
Cash flow from operating activities
for continuing operations 4,521 13,020 21,274 10,204 54,493 65,563
Cash flow from operating activities
for discontinued operations 436 7,173 -3,455 27,867 34,244 2,922
Cash flow from operating activities 4,957 20,193 17,818 38,071 88,737 68,486
Investing activities
Acquisition of intangible fixed assets -4,977 -2,049 -18,697 -14,890 -17,849 -21,656
Acquisition of tangible fixed assets -6,444 -1,505 -12,278 -5,572 -6,611 -13,316
Acquisition of financial assets -108 -17 -166 -193 -300 -273
Cash flow from investing activities
for continuing operations -11,529 -3,571 -31,141 -20,638 -24,743 -35,246
Cash flow from investing activities
for discontinued operations - -1,159 - -9,173 344,012 353,186
Cash flow from investing activities -11,529 -4,730 -31,141 -29,812 319,269 317,940
Financial activities
Dividend to shareholders - -17,697 - - -17,697
Aquired own shares -1,100 -1,100 -1,100
Borrowing - 5,123 - 4,006 9,129
Amortization of loan liabilities -3,846 -11,960 -454 -17,287 -39,897 -23,064
Cash flow from financial activities
for continuing operations -4,945 -11,960 -14,128 -17,287 -35,891 -32,732
Cash flow from financial activities
for discontinued operations - - - 0 - 0
Cash flow from financial activities -4,945 -11,960 -14,128 -17,287 -35,891 -32,732
Cash flow during period -11,518 3,503 -27,451 -9,028 372,116 353,694
Cash and liquid assets at beginning of period 390,461 18,365 404,991 31,017 31,017 22,387
Exchange differences in liquid assets -4,484 520 -3,081 398 1,857 -1,622
Cash and liquid assets at end of period 374,459 22,387 374,459 22,387 404,991 374,459
Additional information:
Adjustments for items not included in the cash flow
Depreciations and write-downs 7,498 7,497 24,456 19,615 32,332 37,173
Change in restructuring reserve -3,503 - 15,590 - - 15,590
Other items -345 -382 -2,249 745 -11,041 -14,035
Sum 3,649 7,115 37,796 20,360 21,291 38,728
Interest received 321 36 2,323 133 4,112 6,302
Interest paid -574 -965 -1,879 -2,860 -3,828 -4,482

STATEMENTS OF CHANGES IN EQUITY

Share Other
payed-in
Accumulated
translation
Hedging- Profit/loss
carried
Total
Amounts in KSEK capital capital differences reserve forward equity
Opening balance January 1, 2008 88,486 1,513,992 -72,117 -460 -733,636 796,265
Changes in 2008:
Net income for the year 2008 - 817 29,240 -582 299,054 328,529
Sum of changes in 2008, exclusive of transactions
with company owners 0 817 29,240 -582 299,054 328,528
Transacitions with company owners
Appropriation according to decision
of the annual meeting - -667,636 - - 667,636 0
Closing balance at December 31, 2008 88,486 847,173 -42,877 -1,042 233,053 1,124,793
Changes in 2009:
Total comprehensive income for the period jan-sep - - -32,024 2,783 -14,585 -43,827
Sum of changes in 2009, exclusive of transactions
with company owners 0 0 -32,024 2,783 -14,585 -43,827
Transacitions with company owners
Dividend to shareholders -17,697 -17,697
Aquired own shares (note 1) -1,100 -1,100
Amounth carried over from reserve fund as per the
decision of extraordinary general meeting registred
by the Swedish Companies Registration Office
on February 10, 2009 - -842,180 - - 842,180 0
Closing balance September 30, 2009 88,486 4,993 -74,901 1,741 1,041,851 1,062,170

note 1: Aquired own shares

At the Annual General Meeting held on April 27, 2009 the board was authorized to decide on the acquisition and sale of the company's own shares. The shares acquired may not exceed 10 percent of the total number of the company's shares.

In accordance with this authorization, the company in August and September 2009 has acquired a total of 158 779 shares at an average purchase price of SEK 6:93 including brokerage commissions.

INCOME STATEMENTS FOR THE PARENT COMPANY

2009-07-01 2008-07-01 2009-01-01 2008-01-01 2008-01-01 2008-10-01
Amounts in KSEK 2009-09-30 2008-09-30 2009-09-30 2008-09-30 2008-12-31 2009-09-30
Net sales 1,548 2,179 4,591 6,159 6,159 4,591
Administative expenses -5,411 -3,884 -13,748 -12,748 -16,043 -17,043
Research and development costs -430 -695 -1,903 -2,850 -3,928 -2,981
Other operating net income 939 3,018 1,784 4,368 28,491 25,907
Operating expenses -4,901 -1,561 -13,867 -11,230 8,519 5,883
Operating profit/loss -3,353 619 -9,276 -5,072 14,677 10,473
Profit/loss from financial investments:
Interest income from receivables from group companies 2,722 4,027 12,292 11,365 16,058 16,984
Interest expenses from liabilities to group companies -454 -479 -1,424 -1,550 -2,021 -1,895
Result from participations in group companies 15,000 - 15,000 -96,781 -81,781
Profit and loss from other securities and receivalbes
that are long term financial assets
- - - 5,092 40,679 35,587
Interest income and similar income items 304 - 2,296 - 2,711 5,022
Interest expenses and similar expense items -11 -1 -19 -35 -20 -19
Translation differences on intra-group receivalbles -746 5,472 0 3,754 16,083 12,329
Finance net 16,816 9,018 28,144 18,627 -23,292 -13,775
Profit/loss before income tax 13,463 9,637 18,868 13,555 -8,614 -3,301
Tax expenses - - - - 3,209 3,209
Total profit/loss for the period 13,463 9,637 18,868 13,555 -5,405 -92

BALANCE SHEETS FOR THE PARENT COMPANY

Amounts in KSEK 2009-09-30 2008-12-31
ASSETS
Fixed assets
Intangible fixed assets
Patent and license rights 6,451 6,774
Financial assets
Participation in group companies 557,090 557,047
Receivables from group companies 181,570 108,269
Deferred tax asset 42,570 42,570
Other long-term securities 781,230 707,886
Total fixed assets 787,681 714,660
Current assets
Current receivables
Account receivables - 71
Receivables from group companies 59,981 82,161
Other receivables 2,275 511
Prepraid expenses and accrued income 1,143 6,705
63,400 89,448
Cash and bank balances and investments 346,565 356,972
Total current assets 409,965 446,420
TOTALT ASSETS 1,197,646 1,161,080
EQUITY, PROVISIONS AND LIABILITIES
Equity
Restricted equity
Share capital 88,486 88,486
Statutory reserves - 842,180
88,486 930,666
Unrestricted equity
Fair value fond -28,869 -2,260
Profit/loss carried forward 856,532 38,554
Profit/loss for the period reported 18,868 -5,405
846,531 30,890
Total equity 935,018 961,556
Current liabilities
Account payable 2,573 3,647
Liabilities to group companies 256,275 189,910
Other short term liabilities 390 789
Accrued expenses and prepaid income 3,390 5,178
262,627 199,523
TOTAL EQUITY, PROVISIONS AND LIABILITIES 1,197,646 1,161,080

CASH FLOW STATEMENTS FOR THE PARENT COMPANY

2009-07-01 2008-07-01 2009-01-01 2008-01-01 2008-01-01 2008-10-01
Amounts in KSEK 2009-09-30 2008-09-30 2009-09-30 2008-09-30 2008-12-31 2009-09-30
Operating activities
Profit/loss after financial items 13,463 9,637 18,868 13,555 -8,614 -3,301
Adjustments for items not included in the cash flow 1,409 -8,125 -5,877 598 29,896 23,422
14,871 1,513 12,991 14,153 21,282 20,120
Tax paid - - - - - -
Cash flow from operating activities
before changes in working capital 14,871 1,513 12,991 14,154 21,282 20,120
Cash flow from change in working capital:
Increase (-)/ decrease (+) of other current receivables 14 -5,607 3,869 -19,386 33,587 56,841
Increase (+)/ decrease (-) of other liabilities -28,345 5,426 -7,604 6,928 123,800 109,268
Cash flow from operating activities -13,460 1,332 9,256 1,696 178,669 186,230
Investing activities
Acquisition of intagnibile fixed assets -95 -433 -823 -1,368 -2,037 -1,492
Sales of financial assets -42 -42 - -42
Divest of business area - 174,437 174,437
Increase (-)/ decrease (+) of other long-term receivables -58 -58 5,041 5,099
Cash flow from investing activities -138 -491 -865 -1,426 177,441 178,001
Cash flow from financial activities - - -
Dividend to shareholders
Aquired own shares
-1,100 -17,697
-1,100
-17,697
-1,100
Cash flow from financial activities -1,100 0 -18,797 0 0 -18,797
Cash flow for the period -14,698 842 -10,407 270 356,110 345,434
Cash and liquid assets beginning of period 361,263 290 356,972 862 862 1,132
Cash and liquid assets at end of period 346,565 1,132 346,565 1,132 356,972 346,565
Additional information:
Adjustments for items not included in the cash flow
Depreciations and write-downs 337 571 1,146 2,434 164,390 163,102
Disvestment profit Biosystems reported in
investing activities - -123,791 -123,791
Translation differences 1,071 -8,696 -7,023 -1,836 -10,702 -15,889
Sum 1,409 -8,125 -5,877 598 29,896 23,422

STATEMENT OF CHANGES IN EQUITY FOR THE PARENT COMPANY

Profit/loss
Amounts in KSEK Share capital Statutory
reserv
Fund for
fair value
carried
forward
Total
equity
Ingående balans 1 januari 2008 88 486 1 509 816 -38 554 -629 082 930 667
Changes in 2008:
Appropriation according to decision - -667 636 667 636 0
of the annual meeting - - 36 294 - 36 294
Profit/loss 2008 - - -5 405 -5 405
Total changes during 2008 0 -667 636 36 294 662 231 30 890
Closing balance December 31, 2008 88 486 842 180 -2 260 33 150 961 556
Changes in 2009:
Amounth carried over from reserve fund as per the
decision of extraordinary general meeting registred
by the Swedish Companies Registration Office
on February 10, 2009 - -842 180 - 842 180 0
Dividend to shareholders -17 697 -17 697
Aquired own shares (note 1) -1 100 -1 100
Exchange rate differences - - -26 609 -26 609
Profit/loss 2009 - - - 18 868 18 868
Closing balance Spetember 30, 2009 88 486 0 -28 869 875 400 935 018

note 1: Aquired own shares

At the Annual General Meeting held on April 27, 2009 the board was authorized to decide on the acquisition and sale of the company's own shares. The shares acquired may not exceed 10 percent of the total number of the company's shares.

In accordance with this authorization, the company in August and September 2009 has acquired a total of 158 779 shares at an average purchase price of SEK 6:93 including brokerage commissions.

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