STOCKHOLM, Sweden, August 14, 2003 (PRIMEZONE) -- Skanditek :
* Pretax loss of SEK 23.5 m reported (corresponding period of the preceding year: loss of 49.5).
* Earnings include charge of SEK 10.3 m (charge: 23.6) for goodwill amortization.This is Skanditek
Skanditek is an industrial holding company with investments in Swedish companies. The Company's business concept is to be an active, long-term owner. As a result, Skanditek is able to contribute to the development of its portfolio companies by providing industrial and financial expertise at Board and management level.
The portfolio companies are active in the electronics, information technology, biotechnology and service sectors. Investments are mainly made at a relatively early stage of the target companies' development, since this is when Skanditek can contribute business-development experience aimed at high growth, research and development and internationalization.
Investment operations
During the second quarter a capital contribution of SEK 2.0 m was granted to Phonepages of Sweden. Skanditek's ownership share is 14.9 percent.
Investments in portfolio companies during the period amounted to SEK 8.6 m (15.4).
Divestments of portfolio companies during the period amounted to SEK 0 m.
The Group's net investments in tangible fixed assets amounted to SEK 0.4 m (0.6).
Net sales and earnings
Consolidated net sales totaled SEK 235.0 m (262.2).
The Group reported a pretax loss of SEK 23.5 m (loss: 49.5). Profit was charged with goodwill amortization and the reversal of negative goodwill in a net amount of SEK 10.3 m (net charge: 23.6). Group companies accounted for SEK 9.7 m (9.6) and associated companies for SEK 0.6 m (14.0) of the amortization total. The latter amount is included in "Shares in earnings of associated companies before tax." Skanditek's principle is to amortize goodwill over five years.
The consolidated net loss amounted to SEK 19.5 m (loss: 43.8), resulting in a loss per share of SEK 0.34 (loss: 0.75).
Since Skanditek has the character of an industrial holding company, analyses of the financial statements should be conducted with caution. Skanditek's composition in terms of Group and associated companies varies over time in line with changes in Skanditek's ownership shares in the portfolio companies.
Financial position
At the end of the period, the Group's liquid funds totaled SEK 35.7 m (70.7). In addition, there were short-term investments in the form of investments in mutual funds and publicly traded shares with a market value of SEK 28.9 m (49.3). There were no interest-bearing liabilities (0).
Liquid funds available for investment activities (excluding portfolio companies within the Group) amounted to SEK 18.1 m (49.4) and short-term investments to SEK 28.9 m (49.3). There were no interest-bearing liabilities (0).
The equity/assets ratio in the Group was 65 percent (70).
Shareholders' equity corresponded to SEK 7.21 (10.57) per share.
Listed portfolio companies
At the end of the period, the market value of the Group's shareholdings in listed portfolio companies was SEK 369.8 m, corresponding to SEK 6.37 per share. On August 13, 2003, the corresponding values were SEK 383.9 m and SEK 6.61 per share, respectively.
The book value of the corresponding holdings at June 30 was SEK 240.1 m, or SEK 4.14 per share.
Performance of portfolio companies
Skanditek's share of the portfolio companies' net sales, calculated as the ownership share multiplied by the individual companies' net sales during the period when the companies were owned by Skanditek, amounted to SEK 502.0 m (529.9).
Skanditek's share of the portfolio companies' operating profit/loss amounted to a loss of SEK 38.9 m (loss: 23.2).
Axis's net sales amounted to SEK 305.4 m (334.7). Currency movements had a negative impact of SEK 40 m on sales during the period. Continued healthy growth was noted in the video product area, with sales rising by 15 percent compared with the year-earlier period. Video accounts for 53 percent of the company's total sales, making it the largest product area. An operating loss of SEK 3.7 m (profit: 18.2) was reported for the period. Currency movements had a negative impact of SEK 4 m on operating profit. Cash flow from continuing operations was negative in an amount of SEK 7.5 m (pos: 9.2).
CMA Microdialysis's net sales amounted to SEK 25.6 m (33.4). Approximately 35 percent of sales is in USD which has affected the sales negative because the currency movements. An operating loss of SEK 10.3 m (loss: 2.5) was reported for the period. The weaker operating result was due to currency momvements and increased development costs and the fact that the expected sales growth did not materialize.
LGP Telecom acquired Allgon at the end of March 2003. Integration activities are proceeding as planned. Jointly, the two companies constitute a significant player in the market for mobile telecommunications equipment, with strong positions in Europe, North America and Asia. The new group will have annual sales of about SEK 2.5 billion, with approximately 1,500 employees in 13 countries.
Net sales during the period amounted to SEK 824.9 m (583.9) and an operating loss of SEK 153.2 m (loss: 42.8) was reported . Items affecting comparability is included in the operating loss amounted to SEK 102.5 m. Allgon is consolidated in the income statement as of the second quarter.
MYDATA automation's net sales during the period amounted to SEK 209.3 m (228.7). An operating loss of SEK 15.0 m (loss: 15.4) was reported. MYDATA automation continues to be affected by weaker demand in the market for equipment for the electronics industry. Order bookings remained low during the second quarter, with a slight increase noted in the end of the period.
The rate of investment in research and development during the period corresponded to 22 percent (18) of sales. The percentage increase was due in part to the reduced sales and increase in R&D costs. During the period, R&D costs of SEK 45.8 m (41.7) were charged against earnings.
PartnerTech's net sales during the period amounted to SEK 652.6 m (688.8). For comparable units, total volume during the period decreased by 15 percent. The Telecom/Infrastructure business area accounted for most of decrease in volume. An operating loss of SEK 19.1 m (loss: 28.8) was reported. Cash flow from continuing operations amounted to SEK 11.3 m (64.0). Demand in the company's market was weak during the first half of the year. Signs of a slight recovery were noticeable towards the end of the period.
Vitrolife's net sales amounted to SEK 48.8 m (62.4). Sales figures for the year-earlier period include the Biosupportive Systems business area, which was divested in July 2002. Sales within core operations rose by 23 percent to SEK 48.8 m (39.6).
An operating loss of SEK 6.6 m (loss: 13.6) was reported. Gross margins improved as a result of more efficient production technology and the increase in net sales.
The savings and restructuring program implemented around year-end, which focused on the core operations of fertility and transplantation systems, has now been completed according to plan. Cash flow from continuing operations was negative in an amount of SEK 14.6 m (neg: 13.0).
Parent Company
The Parent Company's net sales amounted to SEK 0 m (0). A pretax earning of SEK 0.0 m (profit: 0.6) was reported which mainly resulted from expenses for management activities and capital gains on short-term investments.
The Parent Company's investments in portfolio companies totaled SEK 7.3 m (12.0). There were no investments in tangible fixed assets during the period (0.1).
Liquid funds at the end of the period totaled SEK 0.5 m (beginning of the year: 4.8). In addition, the Parent Company had short-term investments in mutual funds and publicly traded shares with a market value of SEK 12.6 m (beginning of the year: 19.0). There were no interest-bearing liabilities (0).
The equity/assets ratio was 95 percent (97).
Accounting principles
This interim report has been prepared in accordance with Sweden's Annual Accounts Act and the Financial Accounting Standards Council's recommendations. The accounting and calculation principles used in the most recent annual report, plus the Financial Accounting Standards Council's recommendations that became effective on January 1, 2003, have been applied in this interim report.
Information
This interim report has not been examined specifically by the Company's auditors.
Forthcoming financial reports
The scheduled publication dates for interim reports during 2003 are as follows:
Third quarter: October 23
Interim reports and press releases are published in Swedish and English.
For further information, please contact:
Patrik Tigerschiold, President,
Telephone +46-8-614 00 20, mobile phone +46-70-77 77 190, e-mail: patrik.tigerschiold@skanditek.se
Jonas Alfredson, Financial Manager, Telephone +46-8-614 00 29, mobile phone +46-733-904 912, e-mail: jonas.alfredson@skanditek.se