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Sectra — Interim / Quarterly Report 2008
Mar 4, 2008
2967_10-q_2008-03-04_b4634747-8dbd-407e-b769-531561d35d0d.pdf
Interim / Quarterly Report
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Press release Linköping, March 4, 2008
Interim report for the nine months, May 2007 – January 2008:
Continued international expansion in third quarter
Sectra's net sales during the third quarter rose 11.8% to SEK 189.3 million (169.4). Profit after financial items amounted to SEK 14.4 million (26.2), which corresponds to a profit margin of 7.6% (15.5). Order bookings were up 67.3% during the quarter to SEK 458.9 million (274.4).
Sectra's net sales for the first nine months of the year increased by 10.9% to SEK 518.4 million (467.7) compared with the year-earlier period. Profit after financial items amounted to SEK 37.4 million (46.8), which corresponds to a profit margin of 7.2% (10.0). Order bookings increased 65.8% to SEK 858.3 million (517.7).
"We continue to secure major service and support contracts for our radiology imaging systems. Often, these were systems previously maintained by partners. During the third quarter, British Telecommunications plc entrusted us with providing support and maintenance for 25 public hospitals in London," says Jan-Olof Brüer, President and CEO of Sectra AB.
"These large, long-term contracts result in up-front costs that impact profits during the initial period of the contract. We also have an increasing portion of comprehensive delivery agreements comprising both hardware and software components. Such undertakings yield lower margins than the sale of software licenses alone," says Jan-Olof Brüer.
In addition to the important London order, Sectra also received additional PACS orders in Europe during the third quarter that are of great strategic value, including an order from the University hospital in Düsseldorf, Germany. International sales have increased dramatically with more than two-thirds of Sectra's sales now being generated outside Sweden.
Sectra continues to strengthen its position as Europe's leading supplier of secure voice communications systems, including an order from Hungary in advance of that nation's EU presidency. The Dutch government also continues to strengthen its cooperation with Sectra, purchasing Sectra's new Tiger service, which includes Tiger products for secure mobile and fixed voice communications along with operation and security administration
For further information, contact:
Sectra AB, Jan-Olof Brüer, President and CEO, tel. +46 13 23 52 09
Sectra AB of them. (publ)
Interim report for Sectra AB (publ) for the nine months, May 2007 – January 2008
The corresponding period in the preceding year is reported in parentheses.
The period in brief
- Order bookings rose 65.8% to SEK 858.3 million (517.7).
- Net sales increased 10.9% to SEK 518.4 million (467.7).
- Profit after net financial items amounted to SEK 37.4 million (46.8), corresponding to a profit margin of 7.2% (10.0).
- Profit after tax amounted to SEK 27.3 million (33.2).
- Earnings per share amounted to SEK 0.74 (0.90).
The third quarter in brief
- Order bookings were up 67.3% to SEK 458.9 million (274.4).
- Net sales increased 11.8% to SEK 189.3 million (169.4).
- Profit after net financial items amounted to SEK 14.4 million (26.2), corresponding to a profit margin of 7.6% (15.5).
- Profit after tax amounted to SEK 11.1 million (18.5).
- Earnings per share amounted to SEK 0.30 (0.50).
Significant events during the quarter
- Sectra signed an agreement to assume full responsibility for support and maintenance of Sectra PACS (a system for management and storage of digital radiology images) for 25 public hospitals in London. Combined, the hospitals perform more than 4,000,000 X-ray exams annually. The agreement was signed with British Telecommunications plc, appointed by the UK's publicly financed healthcare system (NHS) to manage IT solutions for London's hospitals.
- The University hospital in Düsseldorf signed a multi-year agreement regarding Sectra PACS. The hospital is one of the largest and most respected university hospitals in Germany.
- Sectra PACS ranked among the top three in the Community Hospital and Ambulatory/Imaging Center market segments in an American customer survey compiled by the research firm KLAS. KLAS bases its reports on evaluations completed by thousands of professionals and specialists within healthcare and constitutes an important base since healthcare providers evaluate alternatives prior to making purchasing decisions.
- Sjaelland County in Denmark has expanded its mammography operations with Sectra MicroDose Mammography. With this new equipment in place, the county anticipates being able to double the number of women called for mammography screenings each year, compared with today.
- St. Trudo regional hospital in Belgium invested in Sectra's comprehensive digital mammography solution, thereby becoming the first hospital in Belgium to offer women mammograms at the lowest dose on the market.
- The Ministry of the Interior and Kingdom Relations of the Netherlands signed a four-year contract for Sectra's new Tiger service to safeguard voice communications between ministers, undersecretaries and other senior officials. The service includes Tiger products for secure mobile and fixed voice communications and the operation and security administration of them.
Sectra AB (publ)
Teknikringen 20
583 30 Linköping
Tel: 013 23 52 00
Fax: 013 21 21 85
www.sectra.se
• The Hungarian Ministry of Foreign Affairs purchased Sectra's Tiger system to secure communications between the country's decision-makers and officials at its embassies. The contract covers Tiger XS products for eavesdrop-secure voice communications.
Sectra AB (publ)
Order bookings, net sales and earnings
Nine-month period
The Group's order bookings for the nine month period rose 65.8% to SEK 858.3 million (517.7). The change in order bookings compared with the preceding year is mainly attributable to Sectra's success when it comes to signing long-term service and upgrade contracts with hospitals and clinics that already use Sectra PACS. Among those customers are two of the largest healthcare providers in the US, New York City Health and Hospital Corporation and ProMedica Health Systems, as well as a majority of London's public hospitals through an agreement with British Telecommunications plc.
Net sales for the nine-month period increased 10.9% to SEK 518.4 million (467.7). The increase compared with the preceding year is primarily the result of higher deliveries of medical systems and secure communications systems to markets outside Sweden. International sales have increased considerably, with more than two-thirds of Sectra's sales now being generated outside Sweden.
Profit after net financial items amounted to SEK 37.4 million (46.8), corresponding to a profit margin of 7.2% (10.0). Profit after tax amounted to SEK 27.3 million (33.2). Earnings per share amounted to SEK 0.74 (0.90).
The lower profit margin compared with the corresponding period a year earlier is attributable to up-front costs linked to the successes with taking over service and upgrading undertakings for customers that previously had such agreements with Sectra's earlier partner. In addition, the proportion of direct sales of total sales has increased successively during recent financial years, which increases the share of deliveries that consist of both software and hardware components, such as computers and monitors. Such commitments result in lower margins than the sale of software licences alone, that sales through partners usually cosist of. The share of sales attributable to Sectra's mammography system, Sectra MicroDose Mammography, has also increased. Compared with the sale of IT systems, of which PACS is an example, the sale of comprehensive medical technology equipment, such as Sectra's mammography system, yields lower margins.
Third quarter
The Group's order bookings increased 67.3% to SEK 458.9 million (274.4). Both Medical Systems and Secure Communications Systems contributed to the strong growth during the quarter. Demand for Sectra's products is strong, but variations in order volume in terms of individual quarters are considerable.
Net sales for the quarter rose 11.8% to SEK 189.2 million (169.4). Increased revenue from direct sales in the American and European markets have contributed to increased sales.
Profit after financial items amounted to SEK 14.4 million (26.2), corresponding to a profit margin of 7.6 % (15.5). Profit after tax amounted to SEK 11.1 million (18.5). Earnings per share amounted to SEK 0.30 (0.50).
Sectra AB (publ)
Teknikringen 20 583 30 Linköping
Tel: 013 23 52 00
Fax: 013 21 21 85
www.sectra.se
Net sales by business segment
| (SEK million) | 3 months | 3 months | 9 months | 9 months | 12 months | Full-year |
|---|---|---|---|---|---|---|
| Nov 2007 | Nov 2006 | May 2007 | May 2006 | Feb 2007 | May - April | |
| - Jan 2008 | - Jan 2007 | - Jan 2008 | - Jan 2007 | - Jan 2008 | 2006/2007 | |
| Medical systems | 166.7 | 150.6 | 456.9 | 417.4 | 650.4 | 610.9 |
| Secure communication | ||||||
| systems | 24.2 | 18.9 | 68.4 | 50.6 | 85.7 | 67.9 |
| Other 1) | 6.1 | 4.9 | 15.7 | 15.6 | 21.1 | 21.0 |
| Group eliminations | -7.7 | -5.0 | -22.6 | -15.9 | -34.0 | -27.3 |
| Total | 189.3 | 169.4 | 518.4 | 467.7 | 723.2 | 672.5 |
Operating profit/loss by business segment
| (SEK million) | 3 months | 3 months | 9 months | 9 months | 12 mån | Full-year |
|---|---|---|---|---|---|---|
| Nov 2007 | Nov 2006 | May 2007 | May 2006 | Feb 2007 | May - Apr | |
| - Jan 2008 | - Jan 2007 | - Jan 2008 | - jan 2007 | - Jan 2008 | 2006/2007 | |
| Medical systems | 8.2 | 19.3 | 26.8 | 39.4 | 51.2 | 63.8 |
| Secure communication | ||||||
| systems | 4.3 | 4.8 | 8.7 | 4.1 | 10.8 | 6.2 |
| Other 1) | -0.1 | -1.1 | 0.8 | -3.5 | -1.6 | -5.9 |
| Group eliminations | -2.0 | -0.6 | -3.4 | -1.1 | -5.2 | -2.9 |
| Total | 10.4 | 22.4 | 32.9 | 38.9 | 55.2 | 61.2 |
1) Other refers primarily to the Parent Company's debiting of Group-wide services and asset management.
| Net sales by geographical market | ||||||
|---|---|---|---|---|---|---|
| (SEK million) | 3 months | 3 months | 9 months | 9 months | 12 months | Full-year |
| Nov 2007 | Nov 2006 | May 2007 | May 2006 | Feb 2007 | May - Apr | |
| - Jan 2008 | - Jan 2007 | - Jan 2008 | - Jan 2007 | - Jan 2008 | 2006/2007 | |
| Sweden | 61.6 | 64.4 | 177.1 | 191.5 | 226.9 | 241.3 |
| Rest of Europe | 63.6 | 66.8 | 170.7 | 151.5 | 254.6 | 235.3 |
| North America | 63.4 | 36.5 | 157.8 | 111.7 | 223.8 | 177.8 |
| Rest of World | 0.7 | 1.7 | 12.8 | 13.0 | 17.9 | 18.1 |
| Total | 189.3 | 169.4 | 518.4 | 467.7 | 723.2 | 672.5 |
Sectra AB (publ)
Teknikringen 20
583 30 Linköping Tel: 013 23 52 00
Fax: 013 21 21 85
www.sectra.se
Medical Systems
Market
The market for Sectra's medical systems is growing as an increasing number of hospitals choose to improve the efficiency of their radiology operations by introducing digital systems. In order to meet market demand, Sectra is continuing its extensive investments into the expansion of its distribution network and service organization in key markets.
Sectra's offerings and business model have changed successively in recent years. Direct sales, as a percentage of total sales, have increased, increasing the percentage of deliveries that have included both software and hardware, such as computers and monitors. The percentage of sales attributable to Sectra's mammography system, Sectra MicroDose Mammography, has also increased.
A total of more than 40 million X-ray examinations are carried out annually using the company's systems, making Sectra one of the world's leading suppliers of systems for handling digital radiology images. The largest share of radiology clinics using Sectra's medical systems are in North America, the world's largest and one of the fastest-growing markets for medical IT. As the number of installations of Sectra medical systems increases, so does revenue from service, support and upgrade contracts.
The medical-technology industry in the US has been adversely affected in the past year of the measure to reduce the country's budget deficit that was adopted by US authorities, the Deficit Reduction Act (DRA). Among other effects, the DRA means a reduction in the compensation that hospitals and clinics receive from the government and insurance companies for different types of examinations and medical treatments, in particular within the area of medical imaging which includes PACS. Despite DRA, Sectra increased sales on the American market for the nine-month period as well as the quarter.
Order bookings
As a result of the increased marketing efforts, Sectra experienced strong sales successes during the third quarter internationally. Both the number of service and upgrade contracts as well as licence sales to new customers have increased. Sectra has, during the quarter, signed multiyear service and upgrade agreements with hospitals and clinics that already use Sectra PACS. These include an agreement with British Telecommunications plc that assigns Sectra full responsibility for support and maintenance of PACS systems at 25 public hospitals in London.
The first serially manufactured units of the new Sectra MicroDose Mammography system, launched in Spring 2007, were delivered to customers in Scandinavia and the rest of Europe during the nine month period, including Söder Hospital in Stockholm and the Irish national breast cancer screening program, Breast Check. In order to meet the market's growing demand for the system, major investments have been made at Sectra's new, flow-oriented facility for final assembly and quality control. The new facility enables higher production volumes than the previous station-oriented facility that was phased out during the period.
Application for approval to sell Sectra MicroDose Mammography in the US
Sectra submitted the first parts of its application to sell Sectra MicroDose Mammography in the US to the Food and Drug Administration (FDA) during the period. The application procedure is modular. The last part, which contains the clinical study that is required for approval, is expected to be submitted during the first half of 2008.
Sales and earnings
Medical Systems' net sales for the first nine months increased 9.5% to SEK 456.9 million (417.4). This increase was the result of initiatives to expand in strategically important markets, which resulted in an increase in the number of deliveries and service agreements compared with the year-earlier period. Sectra's mammography operations also account for part of the increase in sales.
Sectra AB (publ)
Operating profit for the nine month period amounted to SEK 26.8 million (39.4), corresponding to a profit margin of 5.9% (9.4).
The business area's net sales for the third quarter rose 10.7 % to SEK 166.7 million (150.6). The increase compared with the year-earlier period is primarily the result of sales in markets outside of Sweden, primarily North America.
Operating profit for the quarter amounted to SEK 8.2 million (19.3), corresponding to an operating margin of 4.9% (12.8).
The change in operating margin for the nine-month period and the quarter compared with the year-earlier periods, as previously mentioned, is attributable to up-front costs associated with large service and upgrading contracts as well as costs related to product development and ongoing marketing initiatives. In addition, complete delivery undertakings that consist of both hardware and software components result in lower margins than the sale of software licences alone, that sales through partners usually consist of. Sales of complete medical-technology equipment, of which Sectra MicroDose Mammography is an example, yield lower margins than sales of IT systems.
Secure Communications Systems
Market
Pan-national cooperation is increasing among European authorities and defense agencies, which means that demands for secure communications systems are shifting from being a national to a common issue for the entire EU. This is creating a major new market for EUapproved crypto products.
To meet customer demands, Sectra has, in recent years, invested in the development and marketing of the third-generation Tiger products, Tiger XS, and is the first with an EUapproved crypto product for mobile communications.
Order bookings
One outcome of the initiative aimed at European governmental markets, is that Sectra reached a four-year agreement with the Dutch interior ministry for Tiger products for secure mobile and fixed voice communications, as well as the operation and security adminstration of them. Among the new users of Sectra's Tiger system are the Hungarian foreign office which has ordered Tiger products in advance of their EU presidency to ensure secure voice communcations.
Sales and earnings
Net sales for secure communications systems for the first nine months rose 35.2% to SEK 68.4 million (50.6). Operating profit increased 112.2% to SEK 8.7 million (4.1), which corresponds to an operating margin of 12.7% (8.1).
The business area's net sales for the third quarter increased 28.0% to SEK 24.2 million (18.9). Operating profit for the period amounted to SEK 4.3 million (4.8), which corresponds to an operating margin of 17.8% (25.4).
Financial position
The equity/asset ratio on January 31, 2008 was 60.4% (60.7) and liquidity was a multiple of 2.4 (2.6).
Interest-bearing liabilities amounted at the end of the period to SEK 57.8 million (61.5), of which SEK 56.8 million (46.2) pertains to convertibles.
Investments
Group investments during the first nine months totaled SEK 36.3 million (33.6), of which SEK 13.7 million (12.3) was related to the third quarter. Capitalized development costs during the
Sectra AB (publ)
third quarter amounted to SEK 10.8 million (12.2) and on January 31, 2008 to SEK 158.5 million (130.0).
Employees
The number of employees with full-time employment at Sectra during the third quarter increased by 4 persons and on January 31, 2008 totaled 494 (443).
The share
Sectra's share capital at January 31, 2008 amounted to SEK 36,842,088. At full conversion and exercise of the outstanding incentive programs in the future, the number of shares will increase by a maximum of 822,500, corresponding to 2.2% of the share capital and 1.4% of the votes. After dilution, the total number of shares will amount to 37,664,588.
Risks and uncertainty factors
Sectra is, through its operations, exposed to business risks such as dependence on major customers and partners, the effect of the exchange rate of the USD on pricing in the markets in which the Group is active, and property and liability risks. In addition, Sectra is exposed to various types of financial risks such as currency, interest, loan and liquidity risks.
A detailed description of the risks and uncertainty factors, as well as Sectra's strategies and tactics for minimizing risk exposure and limiting adverse effects, is provided in the Group's Annual Report for 2006/2007 fiscal year, page 46, Note 27. No significant events have occurred that would alter the conditions reported therein.
2008 Annual General Meeting
The Annual General Meeting of shareholders in Sectra AB will be held on Wednesday, June 25, in Linköping. Shareholders wishing to have an issue dealt with at the Annual General Meeting may submit their proposal to the Board of Sectra, under the address Sectra AB, Teknikringen 20, SE-583 30 Linköping, Sweden, or by e-mail to [email protected]. To ensure that a request is properly received and will be included in the notice of the Annual General Meeting, the request must be delivered not later than May 1, 2008. The notice will be available on the company's website four weeks prior to the Meeting.
The Nomination Committee, which has been appointed in accordance with a decision of the 2007 Annual General Meeting, consists of the following members:
- Carl-Erik Ridderstråle, Chairman of the Board (convening authority)
- Jan-Olof Brüer, CEO and President of Sectra AB representing the largest shareholders (Chairman)
- Annika Andersson, representing the Fourth Swedish National Pension Fund
The Nomination Committee, led by Jan-Olof Brüer, will prepare and submit proposals for candidates for the elections of the Chairman of the Annual General Meeting, the Chairman of the Board of Directors and other members of the Board of Directors, propose the fee to be paid to the Board of Directors. Where applicable, the Nomination Committee shall also propose candidates for the election of auditors and fees to be paid to the auditors. Shareholders wishing to submit their own proposals should contact Jan-Olof Brüer at tel. +46 13 23 52 09.
Sectra AB (publ)
Outlook
Sectra has a strong technology platform. The products and system solutions that Sectra develops are aimed at markets with high growth potential. The company's strong position in the home market provides a solid platform for ongoing international expansion.
In recent financial years, Sectra's operations have undergone major changes. One of these is the change in cooperation with the largest partner, Philips Medical Systems. An other is the launch of Sectra MicroDose Mammography, which results in a larger share of manufacturing operations.
The Board's assessment is that Sectra, in the long term, will continue to expand with favorable profitability.
Parent Company Sectra AB
The Parent Company includes head office functions such as group finances and data adminstration as well as exchange, share and investor-related operations.
Net sales in the Parent Company Sectra AB for the nine-month period amounted to SEK 17.2 million (15.8). Profit after net financial items amounted to SEK 16.7 million (8.8).
The Parent Company's income statement and balance sheet are reported on page 12.
Accounting principles
This interim report was prepared in accordance with IAS 34, Interim Financial Reporting, and RR31, Interim Reporting for Groups. The same accounting principles and calculation methods apply as in the most recent Annual Report. This means that the consolidated accounts were prepared in accordance with International Financial Reporting Standards (IFRS) and statements from the International Financial Reporting Interpretations Committee (IFRIC) that were approved by the EU Commission for application within the EU. A description of the accounting principles is available in the Annual Report for the 2006/2007 fiscal year.
| Financial calendar | |
|---|---|
| Year-end report, May 2007 – Apr 2008: | May 20, 2008 |
| For further information, please contact: | |
| Jan-Olof Brüer, CEO and President | Tel.+ 46 13 - 23 52 09 |
This interim report has not been reviewed by the company's auditors. Linköping, March 4, 2008 Board of Directors Sectra AB (publ)
Sectra AB (publ)
Teknikringen 20 583 30 Linköping Tel: 013 23 52 00
Fax: 013 21 21 85
www.sectra.se
Condensed consolidated income statement
| SEK thousands | 3 months Nov 2007 - Jan 2008 |
3 months Nov 2006 - Jan 2007 |
9 months May 2007 - Jan 2008 |
9 months May 2006 - Jan 2007 |
12 months Feb 2007 - Jan 2008 |
Full year May - Apr 2006/2007 |
|---|---|---|---|---|---|---|
| Net sales | 189,321 | 169,361 | 518,395 | 467,744 | 723,162 | 672,511 |
| Capitalized work for own use | 10,786 | 12,326 | 27,651 | 31,982 | 38,250 | 42,581 |
| Operating expenses | -184,387 | -154,084 | -497,406 | -445,178 | -686,655 | -634,218 |
| Depreciation | -5,331 | -5,199 | -15,766 | -15,690 | -19,560 | -19,693 |
| Operating profit after depreciation | 10,389 | 22,404 | 32,874 | 38,858 | 55,197 | 61,181 |
| Net financial items | 4,021 | 3,766 | 4,573 | 7,925 | 5,669 | 9,021 |
| Profit after financial items | 14,410 | 26,170 | 37,447 | 46,783 | 60,866 | 70,202 |
| Tax on earnings for the period | -3,293 | -7,712 | -10,136 | -13,571 | -19,551 | -22,986 |
| Net earnings | 11,117 | 18,458 | 27,311 | 33,212 | 41,315 | 47,216 |
| Of which attributable to: Parent Company shareholders |
11,117 | 18,458 | 27,311 | 33,212 | 41,315 | 47,216 |
| Minority interests | 0 | 0 | 0 | 0 | 0 | 0 |
| Earnings per share Before dilution, SEK |
0.30 | 0.50 | 0.74 | 0.90 | 1.12 | 1.28 |
| After dilution, SEK | 0.30 | 0.49 | 0.73 | 0.89 | 1.10 | 1.26 |
| Number of shares | ||||||
| Before dilution | 36,842,088 | 36,783,188 | 36,842,088 | 36,783,188 | 36,842,088 | 36,783,188 |
| After dilution 1) | 37,664,588 | 37,449,988 | 37,664,588 | 37,449,988 | 37,664,588 | 37,529,988 |
| Average before dilution 2) | 36,842,088 | 36,758,743 | 36,828,999 | 36,750,595 | 36,817,546 | 36,758,743 |
| Average after dilution 1) 2) | 37,691,255 | 37,449,988 | 37,571,177 | 37,375,099 | 37,547,546 | 37,400,488 |
1) Dilution is based on the convertible debenture programs issued in 2005/2006 (165,200), 2006/2007 (266,800) and 2007/2008 (270,500) and the employee stock options issued in 2005/2006 (40,000) and 2006/2007 (80,000).
2) Average number of shares has been adjusted for implemented share splits and share issues.
The bars show quarterly earnings and the line 12-month earnings after financial items.
The bars show quarterly net sales and the line 12-months net sales.
Condensed consolidated balance sheet
| SEK thousands | January 31, 2008 |
January 31, 2007 |
April 30, 2007 |
|---|---|---|---|
| Assets | |||
| Intangible fixed assets | 178,716 | 152,170 | 159,343 |
| Tangible fixed assets | 25,393 | 23,159 | 22,352 |
| Financial fixed assets | 71,008 | 34,262 | 45,962 |
| Total fixed assets | 275,117 | 209,591 | 227,657 |
| Other current assets | 269,424 | 258,101 | 241,655 |
| Cash and cash equivalents | 342,809 | 362,304 | 385,150 |
| Total current assets | 612,233 | 620,405 | 626,805 |
| Total assets | 887,350 | 829,996 | 854,462 |
| Equity and liabilities | |||
| Equity (including profit for the period) | 536,099 | 503,641 | 519,406 |
| Provisions | 15,455 | 9,282 | 11,135 |
| Deferred tax liabilities | 25,154 | 23,760 | 25,906 |
| Long-term liabilities | 46,098 | 49,897 | 36,439 |
| Current liabilities | 264,544 | 243,416 | 261,576 |
| Total equity and liabilities | 887,350 | 829,996 | 854,462 |
Change in equity
| 9 months | 9 months | Full year | |
|---|---|---|---|
| SEK thousands | May 2007 | May 2006 | May – Apr |
| - Jan 2008 | - Jan 2007 | 2006/2007 | |
| Equity at start of period | 519,406 | 486,495 | 486,495 |
| New issue/conversion | 4,197 | 1,723 | 1,723 |
| Dividend paid | -18,421 | -18,373 | -18,373 |
| Shareholdings reclassified to subsidiaries | - | - | 667 |
| Change in translation difference | 890 | -1,117 | -634 |
| Share-based remuneration | 2,717 | 1,701 | 2,314 |
| Net profit for the period | 27,310 | 33,212 | 47,214 |
| Equity at end of period | 536,099 | 503,641 | 519,406 |
Condensed consolidated cash-flow statement
| 9 months | 9 months | Full year | |
|---|---|---|---|
| SEK thousands | May 2007 | May 2006 | May – Apr |
| - Jan 2008 | - Jan 2007 | 2006/2007 | |
| Cash flow from operations before changes in working capital | 38,740 | 57,448 | 82,666 |
| Cash flow from operations after changes in working capital | 28,653 | 12,401 | 71,546 |
| Investment activities | -36,312 | -33,592 | -50,995 |
| Financing activities | -38,943 | -27,741 | -46,478 |
| Change in cash and cash equivalents | -46,602 | -48,932 | -25,927 |
| Cash and cash equivalents, opening balance | 385,150 | 414,297 | 414,297 |
| Exchange-rate differences in liquid assets | 4,261 | -3,061 | -3,220 |
| Cash and cash equivalents, closing balance | 342,809 | 362,304 | 385,150 |
Key figures
| 9 months | 9 months | 12 months | Full year | |
|---|---|---|---|---|
| Jan 31, | Jan 31, | Jan 31, | Apr 30, | |
| 2008 | 2007 | 2008 | 2007 | |
| Order bookings, SEK M | 858.3 | 517.7 | 1,025.3 | 684.7 |
| Equity/assets ratio, % | 60.4 | 60.7 | 60.6 | 60.8 |
| Liquidity, multiple | 2.4 | 2.6 | 2.5 | 2.5 |
| Profit margin, % | 7.2 | 10.0 | 7.6 | 10.4 |
| Return on shareholders' equity, % | - | - | 7.9 | 9.4 |
| Return on capital employed, % | - | - | 11.0 | 13.0 |
| Value added, SEK M | - | - | 7.3 | 8.6 |
| Average number of employees | - | - | 394.6 | 361.5 |
| Equity per share, SEK | 473 | 401 | 464 | 411 |
| Equity per share after dilution, SEK | 14.55 | 13.69 | 14.11 | 14.12 |
| Cash flow per share, SEK | 14.23 | 13.45 | 13.8 | 13.84 |
| Cash flow per share after dilution | 1.05 | 1.56 | 1.74 | 2.25 |
| P/E ratio, multiple | 1.03 | 1.53 | 1.70 | 2.20 |
| Share price at end of period, SEK | - | - | 53.9 | 59.2 |
| Order bookings, SEK M | 60.5 | 78.8 | 60.5 | 76.0 |
Consolidated income statement quarterly
| 2007/2008 | 2006/2007 | 2005/2006 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Net sales | 189.3 | 179.2 | 149.9 | 204.7 | 169.4 | 163.5 | 134.9 | 172.8 | 146.1 | 144.7 | 100.8 |
| Capitalized work for own use | 10.8 | 10.1 | 6.8 | 10.6 | 12.3 | 11.6 | 8.1 | 6.8 | 8.3 | 6.7 | 3.7 |
| Operating expenses | -184.4 | -162.8 | -150.2 | -186.4 | -154.1 | -158.4 | -132.7 | -140.1 | -125.7 | -131.9 | -96.4 |
| Depreciation | -5.3 | -5.3 | -5.2 | -6.6 | -5.2 | -5.2 | -5.3 | -5.4 | -5.0 | -5.3 | -4.4 |
| Operating profit after depr. | 10.4 | 21.2 | 1.3 | 22.3 | 22.4 | 11.5 | 5.0 | 34.1 | 23.7 | 14.2 | 3.7 |
| Net financial items | 4.0 | -1.6 | 2.2 | 1.1 | 3.8 | 4.1 | 0.0 | 1.1 | 3.5 | -0.8 | 1.2 |
| Profit after financial items | 14.4 | 19.6 | 3.5 | 23.4 | 26.2 | 15.6 | 5.0 | 35.2 | 27.2 | 13.4 | 4.9 |
| Tax on earnings for the period Minority interests |
-3.3 - |
-6.1 - |
-0.8 - |
-9.4 - |
-7.7 - |
-4.7 - |
-1.1 - |
-8.1 - |
-7.0 - |
-3.9 - |
-1.5 - |
| Earnings for the period | 11.1 | 13.5 | 2.7 | 14.0 | 18.5 | 10.9 | 3.9 | 27.1 | 20.2 | 9.5 | 3.4 |
Five-year summary
| 2006/2007 | 2005/2006 | 2004/2005 | 2003/2004 | 2002/2003 | |
|---|---|---|---|---|---|
| Net sales, SEK M | 672.5 | 564.4 | 455.9 | 495.3 | 503.4 |
| Profit after financial items, SEK M 1 | 70.2 | 80.7 | 80.4 | 27.6 | 78.9 |
| Profit after tax, SEK M | 47.2 | 60.4 | 52.8 | 21.0 | 53.3 |
| Profit margin, % | 10.4 | 14.3 | 17.6 | 5.6 | 15.7 |
| Return on shareholders' equity, % | 9.4 | 13.2 | 12.8 | 5.8 | 28.7 |
| Return on capital employed, % | 13.0 | 16.0 | 17.1 | 8.8 | 32.5 |
| Earnings per share before dilution, SEK | 8.6 | 10.9 | 12.6 | 6.1 | 20.6 |
| Earnings per share after dilution, SEK | 1.28 | 1.64 | 1.45 | 0.63 | 1.62 |
| Equity per share before dilution, SEK | 1.26 | 1.61 | 1.42 | 0.61 | 1.57 |
| Equity per share after dilution, SEK | 14.12 | 13.24 | 11.79 | 10.96 | 6.23 |
| Dividend per share, SEK | 13.84 | 12.97 | 11.54 | 10.52 | 6.09 |
| Equity per share after dilution, SEK | 60.8 | 58.9 | 61.5 | 61.7 | 43.9 |
| P/E ratio, multiple | 0.50 | 0.50 | 0.50 | 0.50 | 0.50 |
| Net sales, SEK M | 76.0 | 58.8 | 74.0 | 58.5 | 38.0 |
| Profit after financial items, SEK M 1 | 59.2 | 35.7 | 49.7 | 92.9 | 23.6 |
1) Operating profit for full-year 2003/2004 was affected negatively by SEK 70.9 million as a result of a non-recurring impairment loss on capitalized development costs in Sectra Mamea AB.
Condensed income statement for the Parent Company
| 3 months | 3 months | 9 months | 9 months | 12 months | Full year | |
|---|---|---|---|---|---|---|
| SEK thousands | Nov 2007 | Nov 2006 | May 2007 | May 2006 | Feb 2007 | May - Apr |
| - Jan 2008 | - Jan 2007 | - Jan 2008 | - Jan 2007 | - Jan 2008 | 2006/2007 | |
| Net sales | 5,950 | 5,143 | 17,201 | 15,783 | 22,342 | 20,924 |
| Capitalized work for own use | - | - | - | - | - | - |
| Operating expenses | -5,775 | -6,029 | -17,562 | -18,600 | -24,592 | -25,630 |
| Depreciation | 151 | -187 | -366 | -550 | -534 | -718 |
| Operating profit after depreciation | 326 | -1,073 | -727 | -3,367 | -2,784 | -5,424 |
| Net financial items | 6,695 | 6,967 | 17,397 | 12,159 | 21,472 | 16,234 |
| Profit after financial items | 7,021 | 5,894 | 16,670 | 8,792 | 18,688 | 10,810 |
| Untaxed reserves | - | - | - | - | -9,802 | -9,802 |
| Group contribution | - | - | - | - | 146,000 | 146,000 |
| Tax on earnings for the period | -1,958 | -1,650 | -4,660 | -2,622 | -41,547 | -41,707 |
| Net earnings | 5,063 | 4,244 | 12,010 | 6,170 | 113,339 | 105,301 |
Condensed balance sheet for the Parent Company
| SEK thousands | 31 jan | 31 jan | 30 apr |
|---|---|---|---|
| 2008 | 2007 | 2007 | |
| Assets | |||
| Intangible fixed assets | - | - | - |
| Tangible fixed assets | 1,437 | 1,669 | 1,542 |
| Financial fixed assets | 82,366 | 56,317 | 57,317 |
| Total fixed assets | 83,803 | 57,986 | 58,859 |
| Other current assets | 564,601 | 415,201 | 526,675 |
| Cash and cash equivalents | 221,417 | 245,498 | 256,768 |
| Total current assets | 786,018 | 660,699 | 783,443 |
| Total assets | 869,821 | 718,685 | 842,302 |
| Equity and liabilities | |||
| Equity (including profit for the period) | 472,255 | 434,460 | 472,263 |
| Provisions | - | - | - |
| Deferred tax liabilities | 25,939 | 23,194 | 25,939 |
| Long-term liabilities | 45,066 | 43,423 | 34,550 |
| Current liabilities | 326,561 | 217,608 | 309,550 |
| Total equity and liabilities | 869,821 | 718,685 | 842,302 |
Definition key figures
| Adjusted equity | Reported shareholders' equity increased by 72% of untaxed reserves. |
|---|---|
| Capital employed | Total assets reduced by non-interest-bearing debts. |
| Cash flow per share | Cash flow divided by the number of shares at the end of the period. |
| Earnings per share | Profit/loss after tax divided by the average number of shares. |
| Equity/assets ratio | Equity as a percentage of total assets. |
| Equity per share | Equity divided by the number of shares at the end of the period. |
| Liquidity | Current assets divided by current liabilities. |
| P/E ratio | Share price at the end of the period in relation to the twelve-month period's earnings |
| per share. | |
| Profit margin | Profit before tax as a percentage of sales. |
| Return on equity | Profit after tax as a percentage of average adjusted equity. |
| Return on capital employed (ROCE) | Profit before tax plus financial expenses as a percentage of average capital employed. |
| Return on total capital | Profit after net financial items plus financial expenses as a percentage of average |
| total capital employed | |
| Value added | Operating profit plus labor costs. |