LINKOPING, Sweden, March 4, 2003 (PRIMEZONE) -- Sectra (Other OTC:SSBBF) (Stockholm:SECTb) reports increased sales and improved earnings for the first nine months of the 2002/2003 fiscal year. Net sales rose 42.1% to SEK 378.3 M (266.3) compared with the corresponding period of the preceding year. Pretax profit increased 30.1% to SEK 51.0 M (39.2), corresponding to a profit margin of 13.5%. Order bookings amounted to SEK 376.4 M (411.1). Earnings per share rose to SEK 1.06 (0.85).
"The positive trend continues in the current fiscal year," said Jan-Olof Bruer, CEO of Sectra AB. "The Company's main areas -- medical IT and secure communications -- are expanding successfully and international sales are increasing."
In medical systems, during the third quarter Sectra entered into several new cooperation projects in the U.S. and U.K. as a part of Sectra's strategy for an increased internationalization. Increased sales via partners changes the nature of the business. In direct sales, which is the business model with which the company works in Scandinavia, a contract normally comprises delivery of complete systems, including both software and hardware, with long delivery times. Sales via partners, on the other hand, consist solely of software licenses and typically involve contracts with very short delivery times and high added value.
"We continue to invest to strengthen and expand international operations, and an increasing share of Sectra's sales will be derived from markets outside Scandinavia. International sales are primarily conducted through partners, meaning that deliveries consisting solely of software licenses will increase further in the future," continued Jan-Olof Bruer.
The operations in secure communications systems increasingly reflect the international trend toward entirely new defense structures using network-based information processing. During the quarter, Sectra received an order for a pilot study for the next generation of military radio systems.
"Sectra has extensive experience of radio design. Due to our unique expertise in encryption, we can help develop radio systems with extremely strong levels of security," continued Jan-Olof Bruer.
The market for wireless information systems has been adversely affected by the general market conditions, with low investment volumes in both the financial market and the aerospace industry.
"We have adapted our operations in wireless information systems to the prevailing market conditions," Jan-Olof Bruer pointed out.
"Sectra has a strong technology platform. Our solutions target growth markets, and our strong home market provides us with a stable base for international expansion. Therefore, it is our evaluation that Sectra will continue to expand with favorable profitability," concluded Jan-Olof Bruer.
For further information, please contact:
Sectra AB Dr. Jan-Olof Bruer, President and CEO Tel. +46-13-23 52 09 job@sectra.se Please visit the company Website at www.sectra.se This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: www.waymaker.net/bitonline/2003/03/04/20030304BIT00110/wkr0001.doc The full report www.waymaker.net/bitonline/2003/03/04/20030304BIT00110/wkr0002.pdf The full report