Sectra's net sales increase 7.4% to SEK 910.9 million for 2010/2011 fiscal year

The IT and medical-technology company Sectra's (STO:SECTB) net sales rose 7.4% to SEK 910.9 million (848.4) for the 2010/2011 fiscal year, due to increased transactions with existing customers and breakthroughs in new countries. The most significant milestone for the fiscal year was approval of the Sectra MicroDose Mammography system by the US Food and Drug Administration (FDA).

"We will initially market and sell Sectra MicroDose Mammography in the US through our own sales organization. We then look forward to collaborating with one or more partners who can help us conquer the US market," says Jan-Olof Brüer, President and CEO of Sectra AB.

Operating profit for the fiscal year amounted to SEK 8.2 million (34.2), corresponding to an operating margin of 0.9% (4.0). After net financial items, an operating loss of SEK 8.1 million (profit: 23.5) was reported. Currency fluctuations had a negative effect of SEK 18.3 million (neg: 9.3) on the Group's financial items.

"The Mammography product division grew 35% in 2010/2011 but our earnings are still impacted by the product division's loss and the strong Swedish currency," says Jan-Olof Brüer. "In an effort to maintain and strengthen our competitiveness with a relatively highly valued Swedish currency, we are now working to reduce our production, installation and upgrading costs."

In the fourth quarter of the fiscal year, the Sectra Group's net sales were SEK 228.2 million (255.4). Operating profit amounted to SEK 6.5 million (20.2), corresponding to an operating margin of 2.8% (7.9). Operating profit after net financial items was SEK 1.7 million (16.6) for the quarter.

Sectra's strong cash balance and balance sheet enable the company to continue investing for the future. The 2010/2011 fiscal year was characterized by ongoing work to upgrade customers to the next generation of Sectra PACS, breakthroughs in the radiology IT market in Saudi Arabia and mammography market in Canada, regulatory approvals of Sectra's mammography product in new countries and the introduction of new products such as the visualization table. Sectra has also signed a framework agreement with the European Council for secure telephony and launched a new model of the secure mobile telephone, Tiger. The new products and regulatory approvals broaden Sectra's market and strengthen the company's potential for achieving the Group's earnings and growth targets.

"Our growing customer base generates continuous new transactions, and long-term customer relations are our key success factor. We are constantly expanding our offering with new products and services that make life easier for our customers and contribute to our expansion," says Jan-Olof Brüer.