Sectra's nine-month report 2011/2012: Intensified focus on online services for osteoporosis

Sectra's nine-month report 2011/2012: Intensified focus on online services for
osteoporosis

IT and medical technology company Sectra reported profit after tax of SEK
349.0 million for the nine-month period May 2011 – January 2012, including
operations being discontinued. Earnings include a preliminary capital gain of
SEK 322.6 million generated by Sectra’s sale of the MicroDose operations. In
recent months, Sectra has made significant progress with its investments in
services for analyzing osteoporosis and a visualization table for medical
education and surgery planning.

“Our technology has already identified more than 1,000 women at high risk of
osteoporosis-related fractures, who have now received help to prevent this
condition from developing,” says Jan-Olof Brüer, President and CEO of Sectra AB.
“Linköping University has purchased our unique visualization table for the
training of physicians. Both areas are small as yet, but we bring major benefits
for customers and the potential market is large.”

For the nine-month period, Sectra’s net sales amounted to SEK 584.6 million.
Excluding a nonrecurring item attributable to divestment of the MicroDose
operations, sales amounted to SEK 554.6 million (586.4). Operating profit
totaled SEK 56.7 million for the period, corresponding to an operating margin of
9.7%. Excluding the effect of the nonrecurring item, operating profit amounted
to SEK 31.7 million (50.4). Profit after net financial items amounted to SEK
77.6 million, corresponding to a profit margin of 13.3%. Order bookings rose
1.7% to SEK 512.9 million (504.4) compared with the corresponding year-on-year
period.

Sectra reports strong cash flow. Cash flow from operations before changes in
working capital rose to SEK 102.7 million (21.4) for the nine-month period. The
comparative period includes operations being discontinued.

“The MicroDose transaction has increased our resources for investing in
transactions and products that can generate long-term profitable growth,” says
Brüer.

For the third quarter, net sales amounted to SEK 196.1 million (200.7) and
operating profit was SEK 5.4 million (15.7), corresponding to an operating
margin of 2.8% (7.8). Profit after net financial items amounted to SEK
12.2 million (14.7), corresponding to a profit margin of 6.2% (7.3). Order
bookings totaled SEK 131.5 million (213.6) for the quarter. The global economic
situation and budget austerity in many countries entails that transactions take
longer to implement, or – in some countries – fail to materialize.

“The dominating view of transactions in Europe and North America at present is
that many customers have limited budgets that are mainly devoted to maintaining
existing systems and equipment,” says Brüer. “The transactions that take place
are increasingly linked to the replacement of existing hardware, which has an
adverse impact on our operating margin since these transactions have lower
margins than new sales of IT systems.”

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. The information was submitted for publication on March 6, 2012 at 8:00 a.m.
(CET).

For further information

Contact Dr. Jan-Olof Brüer, CEO and President Sectra AB, ph 46 13 23 52 09