|[March 04, 2014]
SECTRA: Sectra's Interim Report May 2013 - January 2014: Number One for Customer Satisfaction and Increased Profit
LINKÖPING, Sweden --(Business Wire)--
· The IT and medical technology company Sectra (http://www.sectra.com/)
(STO: SECT B) increased its operating profit 53.3% to SEK 73.9 million
(48.2), corresponding to an operating margin of 12.7% (8.5).
· The Group's net sales rose 2.5% to SEK 583.2 million (568.9).
· Cash flow after changes in working capital amounted to SEK 104.3
· Order bookings rose 16.8% to SEK 661.1 million (566.1).
· Operating profit increased 45.0% to SEK 30.6 million (21.1),
corresponding to an operating margin of 14.6% (10.3).
· Net sales rose 2.1% to SEK 209.6 million (205.2).
· Order bookings increased 10.1% to SEK 256.5 million (232.9).
Comments by Torbjörn Kronander, President and CEO of Sectra AB:
During the quarter, we learned that hospitals in the US had given our
medical IT system, Sectra PACS, the top ranking in the industry's
foremost customer satisfaction survey, conducted by the analyst company
KLAS. We are extremely happy and proud to have been named "Best in
KLAS." Customer satisfaction is also the single most important factor
for long-term success and profitability.
Sectra's profitability target is an operating margin of 15% and we
achieved 12.7% for the nine-month period. For the third consecutive
quarter, a positive profit trend has been recorded. Through internal
efficiency enhancement and a focus on favorable transactions with strong
margins, we are continuing to approach our profitability target.
Sectra assumes a long-term approach to customer relations in its
operating areas and a growing portion of the industry's sales are being
derived from multi-year agreements with customers purchasing medical IT
systems and secure communication solutions as a service. Sectra's
financial strength is thus giving us an increasingly important edge on
our competitrs and providing a sense of security for our customers.
The favorable growth of our largest business area - Imaging IT Solutions
- was mainly attributable to long-term managed service agreements.
Within this business area, the percentage of sales from new managed
service agreements financed internally by the Group increased to 9% (3)
during the nine-month period. This increasing proportion of internally
financed managed service agreements has given Sectra a more stable trend
at the Group level, since growth and profits from customer projects are
distributed evenly over the duration of the agreements.
In summary, we feel confident in our future prospects, having been
bolstered by praise from satisfied customers and increased order
Read more in the full interim report enclosed.
TELECONFERENCE March 4, 2014 at 9:30 a.m.
with President Torbjörn Kronander and CFO Simo Pykälistö
To participate, call:
Sweden: +46 8 505 564 87 UK: +44 207 660 2078 US: +1 855 716 1592
The presentation will be held in English and can also be followed online
A recorded version of the presentation will be available on Sectra's
website under the heading Investor/Financial presentations (http://www.sectra.com/corporate/investor/financial_information/financial_hearings.html).
The information in this report is such that Sectra AB (publ) is
obligated to disclose in compliance with the Securities and Clearing
Operations Act and/or the Financial Instruments Trading Act. This
information was released to the media for public disclosure on March 4,
2014, at 8:00 a.m. (CET).
Press photos: http://flickr.com/photos/sectramedicalsystems
About the Sectra Group
Sectra was founded in 1978 and has its roots in Linköping University in
Sweden. The company's business operation includes cutting-edge products
and services within the niche segments of medical IT and secure
communication. Sectra has offices in 12 countries and operates through
partners worldwide. Sales in the 2012/2013 fiscal year totaled SEK 817
million. The Sectra share is quoted on the NASDAQ OMX Stockholm
exchange. For more information, visit www.sectra.com.
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