Sectra's nine-month interim report 2009/2010: Major customer projects contributed to increased operating profit

Sectra's nine-month interim report 2009/2010: Major customer projects
contributed to increased operating profit

IT and medical technology company Sectra's operating profit for the nine-month
period rose by 37.3% to SEK 14.0 million (10.2), corresponding to an operating
margin of 2.4% (1.7). Net sales for the period amounted to SEK 592.9 million
(599.5). Profit after net financial items amounted to SEK 7.0 million (64.0) 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 (942.0). 

For the nine-month period, the Medical systems' business area's net sales rose
5.4% to SEK 566.1 million (536.9) and the Secure communications systems business
area's net sales increased 10.0% to SEK 72.6 million (66.0).

“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 AB.

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 (226.1). 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 (15.8), corresponding to a profit margin of
1.3% (7.0). Currency fluctuations impacted the Group's financial items in the
amount of SEK 4.9 million (11.5) 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 (217.0).

“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.


The information in this press release is such that Sectra AB (publ) is obligated
to disclose in compliance with the Swedish Securities and Clearing Operations
Act and/or the Financial Instruments Trading Act. The information was submitted
for publication on March 16 at 08:30 a.m. (CET).

For further information, please contact: 
Dr. Jan-Olof Brüer, CEO and President Sectra AB, tel +46 13 23 52 09

About the Sectra Group
Sectra was founded in 1978 and conducts successful development and sales of
high-technology products in the expansive niche segments of medical systems and
secure communication systems. Sectra has offices in 12 countries and sells its
products through partners worldwide. The head office is in Linköping, Sweden and
the company developed from research at Linköping University. Sales for the
2008/2009 full year amounted to SEK 863 million. Sectra is listed on the NASDAQ
OMX Stockholm AB exchange. For more information about Sectra, visit our website
at www.sectra.se.