IT and medical technology company Sectra's operating profit for the nine-month period between May 2009 to January 2010 rose by 37.3% to SEK 14 million (SEK 10.2 million for the previous year), corresponding to an operating margin of 2.4% (1.7%). Net sales for the period amounted to SEK 592.9 million (SEK 599.5 million). Profit after net financial items amounted to SEK 7 million (SEK 6.4 million) and were negatively impacted by currency effects of SEK 4.5 million (pos: 45.7). The profit margin was 1.2% (10.7%). The Group's order bookings amounted to SEK 669.4 million (SEK 942 million).
For the nine-month period, the medical systems' business area's net sales rose 5.4% to SEK 566.1 million (SEK 536.9 million) and the secure communications systems business area's net sales increased 10.05% to SEK 72.6 million (SEK 66 million).
"Despite a reduction in demand in most markets due to the prevailing economic climate and poor government finances in many European countries, both business areas reported growth for the nine-month period. Our primary growth was in the UK, the Netherlands and Sweden," says Jan-Olof Brüer, president and CEO of Sectra.
Contributions to a rise in operating profit
A number of large customer projects contributed to a rise in operating profit compared with the year-earlier period. One of Sectra's largest ongoing customer projects is coordinating the management of radiology images and patient information in the public healthcare sector for all of Northern Ireland. During the quarter, the first five of a total of 25 hospitals began deploying Sectra's system. The project is one of the most extensive IT installations in the healthcare sector in Europe.
For the third quarter, the Sectra Group's net sales amounted to SEK 201.2 million (SEK 226.1 million). An operating loss of SEK 2.5 million (profit:1.4) was recognized. Results were negatively affected by increased depreciation of Group-financed customer projects and on development projects pertaining to Sectra's new generation of radiological IT systems, which will begin to generate revenues in pace with rising sales. Profit after net financial items for the third quarter was SEK 2.6 million (SEK 15.8 million), corresponding to a profit margin of 1.3% (7%). Currency fluctuations impacted the Group's financial items in the amount of SEK 4.9 million (SEK 11.5 million) as a result of the SEK weakening against the USD during the quarter. The Group's order bookings rose 10.9% to SEK 240.6 million (SEK 217 million).
"In an effort to improve our profit margins, we are continuously working to adapt our operating expenses to the prevailing economic situation. Operating expenses were also reduced as a result of efficiency enhancements related to the completion of major development projects," says Jan-Olof Brüer.
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