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CellaVision Interim / Quarterly Report 2013

Oct 24, 2013

3025_10-q_2013-10-24_672f7a01-e79a-4b74-adcd-33a17fc13539.pdf

Interim / Quarterly Report

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Strong sales and substantial improvement in earnings in the third quarter

January 1 - September 30, 2013

  • Net sales were SEK 115.0 million (119.1).
  • Operating profit was SEK 9.6 million (13.9).
  • Result before tax was SEK 8.4 million (12.4).
  • Earnings per share were SEK 0.26 (0.40).
  • Cash and cash equivalents were SEK 42.6 million (52.6) at the end of the period.

July 1 - September 30, 2013

  • Net sales increased by 28 % to 45.1 million (35.3).
  • Operating profit increased to SEK 10.7 million (4.0).
  • Profit before tax increased to SEK 10.4 million (3.0).
  • Earnings per share increased to SEK 0.33 (0.16).

Significant events during the third guarter

The first major orders of the new DI-60 were delivered to Sysmex Europe and Japan.

Significant events after the period close

CellaVision signs a Term Sheet with the Chinese company Mindray for distribution of CellaVision's products above all in China but also on other emerging markets.

Key ratios

(SEK million) Jul–Sep
2013
Jul-Sep
2012
Jan-Sep
2013
Jan-Sep
2012
Full year
2012
Net sales 45.1 35.3 115.0 119.1 169.5
Gross profit or loss 27.5 22.6 72.8 78.4 110.1
Operating profit 10.7 4.0 9.6 13.9 20.7
Operating margin. % 23.7 11.3 8.4 11.7 12.2
Profit/loss before tax 10.4 3.0 8.4 12.4 18.6
Total cash flow for the period 1.5 5.2 $-3.6$ $-4.2$ $-10.6$

Comments by CellaVision's CEO Yvonne Mårtensson:

"It is satisfying to see a strong growth in our sales for the third guarter. Sales rose by 28 % compared with the same period in 2012 and operating profit increased to SEK 10.7 million. Thus we are winning back most of the sales we lost earlier this year.

During the quarter we delivered the first major orders of the new integrated product DI-60 to Sysmex in Europe and Japan. The sale indicates a need for fully automated product lines at large laboratories and confirms our technology investments. We estimate that sales of the product will also get under way in the USA before the end of the year.

Our sales in China are driving the continued positive development in the Asia Pacific region. In accordance with our geographical expansion strategy we are currently evaluating the Chinese company Mindray as a potential distribution partner, above all in China but also on other emerging markets. Our ambition is to have an agreement ready before the end of the year.

In Europe sales improved during the quarter and in the USA we assess that the downturn in demand for our products is approaching a turning point. Through our partnership initiatives and product development we will stand strong when the market turns fully. The interest in our products continues to be strong and our future growth will be driven by growing rationalization requirements in health care."

Net sales (9 months)

$-3%$

Operating profit (9 mths)

9.6 MSEK

Operating margin (9 mths) 8.4%

Net sales (O3) $+28%$ Operating profit (Q3) 10.7 MSEK

"We are winning back most of the sales we lost earlier this year."

Yvonne Mårtensson, CEO of CellaVision AB

Sales, earnings and investment

January 1 - September 30

Net sales for the Group were SEK 115.0 million (119.1) for the first nine months of 2013, a decrease of 3 % compared with the same period in 2012.

Sales in international markets are mainly in USD and EUR, which means that the company's sales and results are impacted by changes in these currencies. The company hedges 50-90 per cent of planned currency flows to compensate for any foreign exchange fluctuations.

The gross margin for the period was 63 % (66).

The Group's operating profit for the period was SEK 9.6 million (13.9). Total operating expenses for the period were SEK 63.2 million (64.5).

Capitalized expenditure for development projects during the period was SEK 7.3 million (6.5).

Investments in property, plant and equipment during the period amounted to SEK 1.1 million $(1.2).$

July 1 - September 30

Net sales for the Group in the third quarter of 2013 were SEK 45.1 million (35.3), an increase of 28% compared with the same period in 2012.

The gross margin for the quarter was 61 % (64). CellaVision usually has large gross margin variations from quarter to quarter. This is dependent on the share of sales via distributors or via CellaVision's own sales companies, the product mix and exchange rates. During the quarter the gross margin was negatively impacted by non-recurrent inventory adjustments of SEK 0.8 million.

The Group's operating profit for the third quarter rose to SEK 10.7 million (4.0). During the quarter a provision for incentive programs of SEK 2.5 million was dissolved, which improved earnings.

Total operating expenses for the quarter were SEK 16.8 million (18.6).

CellaVision is conducting several development projects, aimed at strengthening the product portfolio in relation to customers in the field of hematology. Capitalized expenditure for development projects was SEK 1.3 million (2.5) for the quarter.

Investments in property, plant and equipment during the quarter amounted to SEK 0 million $(0.6)$ .

Sales per quarter and rolling 12 months (SEK million)

Net sales

115.0 MSEK

Net sales 45.1 MSEK

Development in geographical markets

In the period January-September North America accounted for the largest percentage of sales, 43 % (61), Europe accounted for 35 % (34), and Asia and the Pacific region for 23 % (5).

In the third quarter North America accounted for 43 % (78) of sales, Europe for 36 % (19), and Asia and the Pacific region for 21% (3). In Europe sales increased due to both Sysmex' market introduction of the new integrated DI-60 analyzer and to our three new partners in the region. Growth in the Asia & Pacific region is attributable to sales in China and Japan.

Like others in the medical devices industry selling capital equipment, CellaVision's inflow of orders is unevenly distributed over the year, depending on the distributors' sales and inventory levels. Consequently, the variation in order volume in individual quarters may be great in the different geographical markets.

North America

Sales in the USA and Canada in the first nine months of the year were SEK 49.0 million (73.2), a decrease of 33 %. In local currencies the decrease was 30 %.

In the third quarter, sales in the region were SEK 19.4 million (27.5), a decrease of 30 %. In local currencies the decrease was 27 %.

North American health care continues to find it difficult to finance capital equipment but market prospects are brightening somewhat. When uncertainties as to the effects of the impending health care reform and financial austerity have subsided in the USA, the region should again have good prospects of positive development. In the USA CellaVision collaborates with the four largest distributors of hematology analyzers. Together with Sysmex, Beckman Coulter and Siemens and support from our own company CellaVision Inc., CellaVision is highly visible in the market. By means of a co-marketing agreement, the company also works closely with the fourth largest player, Abbott.

In the third quarter the activity level of the company's three distributors in the USA continued to be high. In July CellaVision's products were presented in the Sysmex, Siemens and Beckman Coulter booths at the AACC trade fair in Houston, Texas. The Sysmex booth also presented the new integrated DI-60 product as part of our partner's automated product line for blood analysis. The product concept is unique for the hematology market and attracted

The new integrated product was launched at an international trade fair in the USA

much attention from the industry in general. This trade fair is considered to be one of the hematology industry's most important international gatherings.

Sales of the new Citrix-adapted software for remote access continued to increase among North American customers that use Citrix in their IT administration solution. The product, the CellaVision® Remote Review Software Citrix Ready, enables these customers to have staff located outside the laboratory examine test results and give an opinion.

Europe, the Middle East and Africa (EMEA)

In the third quarter sales lost in the first six months of 2013 were regained. Despite a weak economic climate, sales more than doubled, both in SEK and local currencies, compared with the corresponding period of 2012 and amounted to SEK 16.2 million (6.8). Growth derives both from our sales of the new integrated DI-60 product to Sysmex Europe, and from our three new partners' efforts in the region.

The region's sales in the first nine months of the year were on a par with the corresponding period of 2012, both in SEK and local currencies. Sales were SEK 40.1 million (40.5).

In the third quarter the first DI-60 was installed. The product is adapted to the needs of medium and large laboratories for an effective and standardized analysis process. By integrating CellaVision's image analysis technology with the Sysmex cell counter and sample preparation module, customers can be offered an automated product line without manual handling of samples during the analysis process. The concept meets the challenges of an ageing population, with higher demands on welfare services and growing staff shortages in health care. Like CellaVision's other analyzers, the concept brings faster test results, better use of resources and more uniform results.

In Europe CellaVision's products are sold largely via procurements in which laboratories increasingly require that purchases of hematology analyzers and equipment for image analysis are made via one and the same supplier. In 2013 CellaVision increased its ability to offer its products in competitive tenders by signing agreements with another three distribution partners. CellaVision now sells its products in EMEA via the four large suppliers of hematology analyzers: Sysmex, Siemens, Beckman Coulter and Abbott. In the third quarter the European agreement with Abbott was extended to cover all of EMEA.

Asia and the Pacific region

The region developed substantially in the first nine months of the year and sales more than quadrupled in both SEK and local currencies. Sales were SEK 25.9 million (5.4).

In the third quarter sales increased to SEK 9.5 million (1.0). The growth is attributable to sales in China and Japan.

CellaVision assesses that in the long term, above all the markets in China, Japan and countries in South East Asia have the potential for strong growth.

In China CellaVision's solution will be marketed to training and research hospitals with more than 500 beds. CellaVision's main focus is to support the work of the three distributors, Sysmex, Beckman Coulter and Vastec, in building awareness and acceptance for the company's products in the Chinese market. Determined market penetration has resulted in most of the sales during the year, particularly in the second and third quarters.

To increase market exposure for our products in China and other emerging markets CellaVision is currently evaluating the Chinese company Mindray as a potential distribution partner. Early in the fourth quarter a Term Sheet was signed between the companies with the objective of agreeing on a contract before the year end.

Sales of CellaVision's products have increased on the Japanese market and the company sees a potential in the DI-60 that is integrated into the Sysmex automated product line. The first major order was delivered to Japan in the third quarter. In parallel with Sysmex, CellaVision's own sales organization is continuing to address the market and increase interest in CellaVision's product offer, for example through presentations together with important opinion-formers.

Strong quarter in Europe due to DI-60 sales and strong partners

Continued positive trend in China and Japan

Research and development

CellaVision is conducting several development projects, aimed at strengthening the product portfolio in relation to customers in the field of hematology.

In July the new DI-60 was completed, which was developed together with our partner Sysmex. The new product integrates CellaVision's image analysis technology with the Sysmex XN series for automated blood analysis. It was developed on CellaVision's latest hardware platform.

One of the company's ongoing software projects is a new application for more advanced analysis of the red blood cells.

CellaVision continuously capitalizes costs for new development. During the nine-month period capitalized expenditure for development projects amounted to SEK 7.3 million (6.5).

Significant events after the period close

On 9 October CellaVision signed a letter of intent with the Chinese company Mindray for distribution of CellaVision's products, mainly in China but also on other growth markets. Ongoing discussions with Mindray support CellaVision's strategy of geographical expansion with the help of local distribution partners. More information will be provided when a binding agreement is signed. The aim is to agree on the terms and conditions of an agreement before the end of 2013.

Financing

Funds at the Group's disposal at the close of the period consisted of SEK 47.6 million (57.6), of which SEK 42.6 million (52.6) was cash and cash equivalents. These funds include unutilized credit of SEK 5.0 million.

The period's cash flow from operating activities was SEK 11.5 million (13.3). The cash flow from operating activities for the third quarter was SEK-0.3 million (-1.1).

Total cash flow for the period was SEK -3.6 million (-4.2), which is due to the dividend of SEK 9.5 million distributed by the company in the second quarter.

Parent company

Parent company sales for the period were SEK 105.3 million (110.4). Result before tax was SEK 6.9 million (10.9). Parent company sales for the third quarter were SEK 42.5 million (33.1). The result before tax for the quarter was SEK 8.4 million (-3.0).

The parent company's investments in property, plant and equipment and intangible assets during the period amounted to SEK 7.9 million (7.2) and the cash flow was SEK -5.8 million $(-1.3)$ .

In other respects please refer to the information for the Group.

Personnel

The number of employees of the Group, restated as full-time equivalents, was 68 (66) at the close of the period. Of these, 40 (37) were men and 28 (29) women.

Unappropriated funds 47.6 MSEK

Cash flow (9 mths) -3.6 MSEK

Number of employees 68

Other information

Group

On September 30, 2013 the Group consisted of the parent company and the wholly-owned subsidiaries CellaVision Inc. (USA), CellaVision Canada Inc. (Canada), CellaVision Japan K.K. (Japan) and CellaVision International AB.

Accounting policies

The consolidated accounts are prepared in accordance with International Financial Reporting Standards, IFRS. The interim report for the Group was prepared in accordance with IAS 34, Interim Financial Reporting, the Annual Accounts Act and in accordance with the Stockholm Stock Exchange rules and regulations for companies listed on NASDAQ OMX Stockholm. The interim report for the parent company was prepared in accordance with the Annual Accounts Act and the Swedish Financial Reporting Board recommendation RFR 2, Accounting for Legal Entities. The interim report has been prepared in accordance with the accounting policies and valuation methods presented in the Annual Report for 2012, with the exception of the changes presented below.

IFRS 13 Fair value measurement

The new International Financial Reporting Standard IFRS 13 applies to fair value measurement of both financial and non-financial items and replaces previous quidance contained in individual standards referring to fair value measurement. IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the "exit price"). IFRS 13 has been applied prospectively from January 1, 2013. The application of IFRS 13 has not had any impact on the Group's results and financial position regarding the valuation of the Group's financial instruments.

IFRS 13 requires that several quantitative and qualitative disclosures should be presented in the financial statements in respect of fair value. As a result of these disclosure requirements in IFRS 13, IAS 34 Interim Financial Reporting was also updated.

IAS 1 Presentation of financial statements

As of 2013, an amendment to IAS 1 has been introduced which involves regrouping items presented in other comprehensive income into items that will be reclassified to profit or loss and items that will not be reclassified to profit or loss. CellaVision's application of the amendments to IAS 1 is presented in the Group statement of comprehensive income.

Other new standards and interpretations that came into force on January 1, 2013 have not had any impact on CellaVision's financial reporting for the interim report period.

Financial instruments

Derivatives held for foreign currency hedging are valued at level 2, financial instruments, where fair value is determined on the basis of valuation models based on other observable data for the asset or liability than listed prices included in level 1, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Currency forwards are valued on the basis of observable information referring to exchange rates on the balance sheet date and market rates for remaining maturities. The value of CellaVision's derivatives amount to SEK 0.2 million at September 30, 2013.

The carrying amount of financial instruments measured at amortized cost is consistent with fair value at September 30, 2013.

Segment reporting

CellaVision's operations only comprise one operating segment; automated microscopy systems in the field of hematology, and therefore reference is made to the income statement and balance sheet regarding operating segment reporting.

Information concerning risks and uncertainties

Reduced demand and changes in exchange rates constitute uncertainties but not material risks. For a more detailed description of the risks and uncertainties facing CellaVision, please refer to the risk and sensitivity analysis in the Annual Report for 2012.

The Nomination Committee for the Annual General Meeting in 2014

In accordance with a resolution of the 2013 Annual General Meeting the Nomination Committee shall consist of the Chairman of the Board and one representative of each of the four largest shareholders in terms of voting rights at the end of September 2013. For the 2014 Annual General Meeting the Nomination Committee consists of Lennart Hansson, Chairman (Stiftelsen Industrifonden), Aleksandar Zuza (Metallica Förvaltnings AB), Christer Fåhraeus (Christer Fåhraeus and companies), Caroline af Ugglas (Skandia) and Chairman of the Board Lars Gatenbeck.

Shareholders wishing to submit proposals to the Nomination Committee can send an email to [email protected], or ordinary mail to: The Nomination Committee, CellaVision AB, Ideon Science Park, SE 223 70 Lund

Annual General Meeting 2014

CellaVision's Annual General Meeting in 2014 will be held in Lund on May 7, 2014.

Shareholders wishing to have matters considered at the Annual General Meeting can send a written request by email to [email protected] or ordinary mail to: The Board of Directors, CellaVision AB, Ideon Science Park, SE 223 70 Lund. The request must have been received at the latest seven weeks before the Annual General Meeting in order to be included in the notice to attend and thus the agenda of the Annual General Meeting.

Financial calendar

Year-end bulletin 2013: February 13, 2014
Interim report January – March: May 6, 2014
Annual General Meeting 2014: May 7, 2014

The interim reports for 2013 and annual report for 2012 are available at www.cellavision.com.

The Board of parent comp describes ma the Group ar f Directors an pany's and the aterial risks an re exposed. d the Preside e Group's bus nd uncertaint ent certify tha siness, financi ties to which t t the interim ial position an the parent co report fairly p nd performan ompany and t presents the nce and he companie es in

Lund, Octob ber 24, 2013

Lars Gatenbe
eck
Chairman of
f the Board
Chr
rister Fåhraeu
s
Mem
mber of the Bo
oard
Lars Henrikss
son
Member of th
he Board
Rog
ger Johanson
Mem
mber of the Bo
oard
Anna Malm B
Bernsten
Member of th
he Board
Yvo
onne Mårtens
son
Pres
sident/CEO

Sven-Åk Member ke Henningss r of the Board on

Torbjörn Member n Kronander r of the Board

Questions s concernin ng the repor rt can be ad ddressed to o:

Yvonne Mårt Tel: +46 708 tensson, Pres 33 77 82. Em ident/CEO, Ce ail: yvonne.m ellaVision AB martensson@c cellavision.se

Magnus Blixt Tel: +46 708 t, CFO, CellaV 33 81 68. Em Vision AB ail: magnus.b blixt@cellavisi on.se

Publicatio on

The informat Securities Ma submitted fo tion in this int arket Act and or publication terim report i d/or the Finan n on October is disclosed b cial Instrume 24, 2013 at 8. y CellaVision nts Trading A .20 am. AB (publ) pur Act. The inform rsuant to the mation was

Address

CellaVision A Corporate id AB, Ideon Scie dentity numbe ence Park, SE 2 er: 556500-09 223 70 LUND 998

Web: www.c Blog: http://b App: CellAtla cellavision.com blog.cellavisio as m on.com

CellaVision is under the tic s listed on the cker symbol C e NASDAQ OM CEVI and ISIN MX Stockholm code SE00006 m, Small Cap l 683484. list. The comp pany is traded

Review report

To the Board of Directors of CellaVision AB

Corporate identity number 556500-0998

Introduction

We have performed review of the interim report for CellaVision AB (publ.) as at September 30, 2013 and the nine-month period ending on that date. The Board of Directors and the President are responsible for preparing and presenting this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Focus and scope of the review

We conducted our review in accordance with the Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA) and other generally accepted auditing standards. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion that is expressed on the basis of a review does not give the same level of assurance as a conclusion based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report does not, in all material respects, accord with IAS 34 and the Annual Accounts Act for the Group and, for the parent company, with the Annual Accounts Act.

Lund, October 24, 2013 Deloitte AB

Maria Ekelund Authorized public accountant

Consolidated Income Statement in Summary

All amount in '000 SEK Jul-Sept 2013 Jul-Sept 2012 Jan-Sept 2013 Jan-Sept 2012 Jan-Dec 2012
Net sales 45 076 35 332 114 966 119 107 169 512
Cost of goods sold $-17611$ $-12741$ $-42125$ $-40747$ $-59456$
Gross profit 27 465 22 591 72841 78 360 110 056
Sales and marketing expenses $-8980$ $-8334$ $-29326$ $-27328$ $-38859$
Administration expenses $-4893$ $-6370$ $-18500$ $-21601$ $-29060$
R&D expenses $-2901$ $-3905$ $-15366$ $-15543$ $-21435$
Operating result 10 691 3982 9649 13888 20 702
Interest income and financial exchange rate gains 264 80 373 172 225
Interest expense and financial exchange rate losses $-531$ $-1033$ $-1579$ $-1640$ $-2376$
Result before income tax 10424 3029 8 4 4 3 12420 18 5 51
Tax $-2511$ 863 $-2342$ $-2775$ $-12100$
Net result 7913 3892 6 10 1 9645 6451
Other comprehensive income:
Components not to be reclassified to net profit:
Components to be reclassified to net profit:
a) Financial assets at fair value
Reclassified to operating result $-163$ $-135$ $-2418$ 125 99
Revaluation of financial assets 2 3 0 4 2729 210 3851 2 3 4 2
Income tax relating to financial assets $-488$ $-682$ 469 $-1046$ $-537$
b)Translation difference
Translation difference in the group $-163$ $-5$ 227 $-81$ 31
Sum of Components to be reclassified to net profit: 1490 1907 $-1512$ 2849 1935
Sum of other comprehensive income:
Comprehensive result for the period
1490 1907 $-1512$ 2849 1935
9403 5799 4589 12494 8 3 8 6
Per share data Jul-Sept 2013 Jul-Sept 2012 Jan-Sept 2013 Jan-Sept 2012 Jan-Dec 2012
Earnings per share, SEK */ 0,33 0,16 0,26 0,40 0,27
Equity per share, SEK 5,03 5,41 5,03 5,41 5,24
Equity ratio, % 70% 71% 70% 71% 70%
Number of shares outstanding 23 851 547 23 851 547 23 851 547 23 851 547 23 851 547
Average number of shares outstanding 23 851 547 23 851 547 23 851 547 23 851 547 23 851 547
Stock exchange rate, SEK 12,90 15.20 12,90 15,20 14,70

*/ In relation to net profit and average outstanding shares

Quarterly Results

All amount in '000 SEK Q3 2013 Q2 2013 01 2013 04 2012 03 2012 Q2 2012
Net sales 45 0 76 36 095 33795 50 405 35 332 43 360
Gross profit 27 4 65 23 3 98 21 978 31 6 9 6 22 5 9 1 28 6 98
Gross margin in % 61 65 65 63 64 66
Overhead cost $-16774$ $-23755$ $-22663$ $-24882$ $-18609$ $-24152$
Operating result 10 691 $-357$ $-685$ 6814 3982 4 5 4 6
Net result 7913 $-314$ $-1498$ $-3194$ 3892 3 1 1 0
Cashflow 1513 $-11420$ 6 2 9 6 $-6389$ 5 1 5 0 $-8996$

Consolidated Balance Sheet in Summary

All amount in '000 SEK 2013-09-30 2012-09-30 2013-06-30 2012-12-31
Assets
Intangible assets 25 687 23 201 26 5 7 3 24 152
Tangible assets 2809 2 3 4 3 3 1 0 1 2693
Deferred tax 35 877 46 5 29 38 189 37994
Financial assets 87 101 82 91
Inventory 20 54 6 16936 23 3 69 16356
Trade receivables 35 319 28 3 7 2 26 288 40 632
Other receivables 8 3 2 4 11 25 2 7579 10402
Cash and bank 42 6 25 52 625 41 1 12 46 236
Total assets 171 274 181359 166 293 178 556
Equity and liabilities
Equity 119 960 129 020 110556 124 912
Short term debt 17504 18055 22 3 15 20 802
Short term debt with interest 15 5 5 4 15 402 13 9 93 14 2 7 2
Trade payables 16464 16834 17581 16458
Other liabilities 1792 2048 1848 2 1 1 2
Total equity and liabilities 171 274 181359 166 293 178 556

Consolidated statement of changes in equity

All amount in '000 SEK 2013-09-30 2012-09-30 2013-06-30 2012-12-31
Balance at the beginning of the year 124 912 126 067 124 912 126 067
Dividend $-9541$ $-9541$ $-9541$ $-9541$
Net profit for the year 6 1 0 1 9645 $-1812$ 6451
Comprehensive result for the period $-1,512$ 2849 $-3002$ 1935
Balance at the end of the year 119 960 129020 110557 124 912

Cash Flow Analysis in Summary in Summary

All amount in '000 SEK Jul-Sept 2013 Jul-Sept 2012 Jan-Sept 2013 Jan-Sept 2012 Jan-Dec 2012
Result before taxes 10424 3 0 2 9 8 4 4 3 12420 18551
Adjustment for items not included in cash flow $-2733$ 746 3 2 5 8 4 1 3 6 7668
Taxes 26 $-790$
Cash flow from operations before changes in working
capital 7717 3775 11701 16 556 25 4 29
Changes in working capital $-6481$ $-4885$ 1 2 5 5 $-3221$ $-13936$
Cash flow from operations 1 2 3 6 $-1110$ 12956 13335 11 493
Capitalisation of development costs $-1280$ $-2521$ $-7259$ $-6532$ $-9256$
Aquisitions in financial non-current assets $-4$ 4 5 13 23
Aquisitions in tangible non-current assets $\Omega$ $-566$ $-1054$ $-1151$ $-1854$
Cash flow from investment activities $-1284$ $-3083$ $-8308$ $-7670$ $-11087$
New loans and instalments of dept 1561 9 3 4 3 1 2 8 2 $-317$ $-1447$
Dividend $\Omega$ $-9541$ $-9541$ $-9541$
Cash flow from financing activities 1561 9 3 4 3 $-8259$ $-9858$ $-10988$
Total cash flow 1513 5 1 5 0 $-3611$ $-4193$ $-10582$
Liquid funds at beginning of period 41 1 12 47 475 46 236 56818 56818
Liquid funds at end of period 42 6 25 52 625 42 625 52 625 46 23 6

Income Statement - Parent Company

All amount in '000 SEK Jul-Sept 2013 Jul-Sept 2012 Jan-Sept 2013 Jan-Sept 2012 Jan-Dec 2012
Net sales 42 5 44 33 1 23 105 342 110 388 161 949
Cost of goods sold $-22604$ $-22047$ $-50330$ $-50729$ $-78322$
Gross profit 19 940 11076 55 012 59 659 83 627
Sales and marketing expenses $-2808$ $-2847$ $-12507$ $-10471$ $-15705$
Administration expenses $-5965$ $-6370$ $-19572$ $-21601$ $-29060$
R&D expenses $-2302$ $-3905$ $-14767$ $-15543$ $-21435$
Operating result
Interest income and financial exchange rate gain.
8865
72
-2 046
80
8 1 6 6
179
12044
165
17427
217
Interest expense and financial exchange rate loss $-526$ $-1011$ $-1472$ $-1353$ $-2106$
Result before income tax 8411 -2 977 6873 10856 15 538
Tax $-1512$ 783 $-1512$ -2855 $-11408$
Net result 6899 $-2194$ 5 3 6 1 8001 4 1 3 0

Statement of Comprehensive Income

All amount in '000 SEK Jul-Sept 2013 Jul-Sept 2012 Jan-Sept 2013 Jan-Sept 2012 Jan-Dec 2012
Net result for the period 6899 $-2194$ 5 3 6 1 8 0 0 1 4 1 3 0
Other comprehensive income:
Sum of other comprehensive income: 0 $\Omega$
Comprehensive result for the period 6899 $-2194$ 5 3 6 1 8001 4 1 3 0

Balance Sheet - Parent Company

All amount in '000 SEK 2013-09-30 2012-09-30 2013-06-30 2012-12-31
Assets
Intangible assets 25 687 23 201 26 573 24 152
Tangible assets 1882 1651 2 1 0 6 2 1 2 6
Deferred tax 35 5 7 9 45 645 37 092 37 092
Financial assets 9852 9852 9852 9852
Inventory 17518 12 204 19823 12 2 8 6
Trade receivables 33 407 19808 23 800 31 840
Receivables from group companies 6713 15 3 69 9 9 0 8 12 642
Other receivables 7 3 0 4 7084 8 1 6 1 7762
Cash and bank 36 508 47 578 34 545 42 301
Total assets 174 450 182 392 171860 180 053
Equity and liabilities
Equity 127 231 135 280 120 330 131410
Short term debt 13 5 20 13 049 3 0 0 0 16 086
Short term debt with interest 15 5 5 4 15 402 13 993 14 272
Liabilities to group companies
Trade payables 16 3 5 3 16613 17 361 16 173
Other liabilities 1792 2048 17 176 2 1 1 2
Total equity and liabilities 174 450 182 392 171860 180 053

This s is CellaV Vision

CellaVision's laboratories, hematology in the US, Ca s customers a , mainly in Eu companies. P anada and Jap re large and m rope and Nor Products are s pan. mid-sized hos rth America. I sold directly i spital laborato n most count n the Nordic ories and com tries sales are countries and mmercial via global d via subsidia ries

CellaVision's workflows an SEK 170 mill increase by a s analyzers rat nd competen ion, correspo at least 15 % a tionalize man ncy developm nding to an in annually over nual laborator ment within an ncrease of 9 % r an economic ry work and se nd between h %. The target c cycle. ecure and sup hospitals. In 20 is for sales to pport effectiv 012 sales wer continue to ve re

The product ts replace ma anual micros scopy in labo oratories for blood analys ses

After taking shows signs This analysis analyzer it m the sample, m of disease it i s is carried out must be done most blood te is examined f t automatical manually in a ests are first an urther to ena ly by CellaVis a microscope. nalyzed using ble it to be us sion's analyze g cell counter sed as a basis r. Without Ce s. If the samp for diagnosis ellaVision's ple s.

What is driv ving growth? ?

The demand assurance re Growing staf highly intere county coun coordinate g d for CellaVisio equirements i ff shortages in esting solutio ncil or hospita geographicall on's products n the healthc n laboratory o n. The trend i al groups and y spread serv s is strong and care market, p operations m s for more ho seek tools to vices. .d is due to inc particularly in ake CellaVisio ospitals to join help them w creased efficie Europe and N on's automate n together an work more effe ency and qua North America ed products a d collaborate ectively and lity a. e in

Five founda ations for gro owth

CellaVision's developmen for our analy s overall grow nt. Growth tak ytical method wth strategy is kes place thro to be standa s based on glo ough focusing ard at clinical l obal expansio g on custome laboratories t on, partnershi rs and the ma throughout th p and produc arket. Our goa he world. ct al is

  1. Target gro growing nee markets in A up and positio ed for automa Asia, mainly Ja oning. We cur ation. These a apan, China an rrently target are mainly fou nd South East clinical labora und in Europe t Asia. atories in hem e, North Amer matology with rica and select h a ted

  2. Customer r through sati partners and quality, func score for reli from one to relations. Cust sfied custome d end custom ction and user ability and us five. tomers' purch ers can CellaV ers to ensure r-friendliness. ser-friendlines hasing behav Vision continu that our prod . In customer ss of the prod ior and needs ue to grow an ducts meet m surveys in the duct has been s direct our bu nd develop. W market require e last two yea n just over fou usiness. Only We work close ements for ars the averag ur, on a scale to ge

  3. Sales chan strong, strate through the and Abbott. continuous s looking at ne nels. CellaVisi egic and com largest hema Our own sale support and t ew opportuni ion reaches a mplementary p atology comp es organizatio training to ou ities and form broad geogr partners with panies in the w ons in the Nor ur partners du ms of coopera aphical marke a local prese world: Sysmex rdic area, the uring the sales tion. et by coopera nce. We sell o x, Beckman C USA, Canada s process. We ating with our products oulter, Sieme and Japan gi are constant ens ve ly

  4. Product de groups and b the best solu developmen the market p evelopment. W by examining ution and pref nt through co puts further d We will grow b g the possibili ferably devel operation wit emands on o by broadening ty of commer op it ourselve th partners. T our future pro g our product rcializing new es, but the str The emergenc duct develop t range for ex w areas of ana ategy also inc ce of competi pment. xisting custom lysis. We seek cludes ng companie mer kes in

  5. Company c important to ideas are an in image ana of IT knowled culture. Satisfi o us that our e important fac alysis, artificia dge, we can d ied employee employees en ctor behind o al intelligence develop solut es create the c njoy their wor our positive de e and automat tions that brin conditions fo rk, feel involve evelopment. ted microsco ng considerab r satisfied cus ed and motiv With leadingpy, as well as ble gains to cu stomers. It is vated. Innovat -edge experti a great quan ustomers. tive ise ntity

About Cella aVision's geo ographical m arkets

North Americ ca

North Ameri driver for me growing staf particularly e ensure effec the requirem growing due and Siemens organization largest playe ca is CellaVisi eeting greate ff shortages th evident in the tive and secu ments for redu e to the agein s sell CellaVisi n. By means o er, Abbott. In ion's largest m r effectivenes hat exist in la e USA and Can ure managem uced labor co ng population ion's product f a co-market Canada, Cella market. Autom ss requiremen boratory ope nada. Laborat ent of large a sts and shorte n. The distribu s in the USA i ting agreeme aVision sells d mation has lo nts in North A rations in the tories are the and growing s er response t utors Sysmex A n parallel wit nt, we also wo directly to the ng been the m American labo e western wor refore seeking sample volum imes, sample America, Bec h CellaVision' ork closely wi end custome most importa oratories. The rld are g solutions th mes. On top of volumes are kman Coulter 's own sales ith the fourth er. ant hat f rheuple

Europe, the M Middle East an nd Africa

Europe is Ce transition fro of years in th productivity distributors S Marketing w ellaVision's lar om manual m he European c y and offset th Sysmex, Siem work has just s gest market i microscopy to countries. The he coming yea mens, Beckma started in the n terms of the CellaVision's e laboratories ars' shortage n Coulter and Middle East a e number of a method has b s are seeking s of biomedica d Abbott sell C and Africa. analyzers sold been in full sw solutions that l analysts. In E CellaVision's p d to date. The wing for a cou t can increase Europe the products. eng

Asia and the Pacific region

CellaVision p and quality a potential and the distribut products are a assurance pot d demand is g tors Sysmex, B also appreciat tential. China gradually star Beckman Cou ted in Asia an , Japan and S rting to take o ulter and Siem nd the Pacific outh East Asi off. In most m mens. region for the a are markets markets CellaV eir time-savin s with long-te Vision sells via erm

There are mo consists of a office in Chin ore than 20,0 bout 800 of C na with two e 00 hospitals i China's largest employees wh n China. The t hospitals. In ho support th target group 2012 CellaVi e region's dis for CellaVisio sion establish stributors. on's products hed a market

Japan is a ma facing severa population t well able to s health care s company's te the distribut arket with im al challenges that at the sam solve quality sector. Since t echnology to tor Sysmex als portant grow with funding me time dem and efficiency the start in 20 o the thousand so sells CellaV wth potential f g problems as ands better q y problems a 008 CellaVisio d or so major Vision's produ for CellaVision s expenditure quality. Conse re highly inte n's subsidiari r clinical labor ucts. n. Japanese h increases for equently, prod resting to the es have mark ratories in Jap health care is r an ageing ducts that are e Japanese keted the pan. Since 201 e10