Sectra’s year-end report 2012/2013: Healthy order bookings through several long-term contracts

The IT and medical technology company Sectra reported order bookings of SEK 350.0 million (188.2) for the fourth quarter of the 2012/2013 fiscal year. This corresponds to a year-on-year increase of 86%. Sectra has a sound financial position and, accordingly, the Board proposes to the Annual General Meeting that SEK4.50 per share be paid to shareholders through a share redemption program.

Sectra’s net sales for the fourth quarter increased 4% to SEK 248.1 million (238.5) and operating profit totaled SEK 37.6 million (46.8). Earnings corresponded to an operating margin of 15.2% (19.6).

“We have captured more strategic and long-term customer contracts in the UK and Sweden, which contributed to extremely healthy order bookings in the quarter, and also noted a degree of improvement in the US. Sectra posted a strong close to the 2012/2013 fiscal year but we did not match the outstanding earnings posted for the corresponding year-earlier period,” says Torbjörn Kronander, President and CEO of Sectra AB.

Sectra grows with production-oriented hospitals

Sectra is growing through major long-term contracts covering region-wide IT systems that contribute to streamlining image management in healthcare. In the Secure Communications business area, Sectra is affected by delays in planned projects due to extended processing times with the principal customer in Sweden. This has led to Sectra restructuring security operations and reviewing how to widen its offering and customer base.

Sectra prioritizes controlled growth in a select number of markets and primarily wants to increase in size where it has an existing market presence. This strategy has proved successful and the Group’s order bookings increased 30% to SEK 916.0 million (701.1) during the fiscal year. Net sales increased 3% to SEK 817.0 million (793.1) and operating profit was up 9% to SEK 85.9 million (78.5), corresponding to an operating margin of 10.5% (9.9). The comparative figures relate to the results in the year-earlier period, excluding a nonrecurring item attributable to the divestment of the MicroDose business.

Proposed dividend/share redemption program

Sectra’s shareholders have received healthy returns over the past few years, since 2011, SEK 369 million has been transferred to the owners through share redemption programs. The Board proposes to the 2013 Annual General Meeting that a further SEK 166.9 million be transferred to shareholders through a share redemption program, which corresponds to a dividend yield of 8.4% based on the share price at the balance-sheet date. No ordinary dividend is proposed. Further information about the proposal is presented in the notice of the Annual General Meeting, which will be published on May 29, 2013.

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 May 28, 2013, at 8:00 a.m. (CET).

About the Sectra Group

Sectra conducts successful development and sales of high technology products and services in the niche segments of medical IT and secure communication. The company was founded in 1978 and grew from research carried out at Linköping University. Sectra has offices in twelve countries and sells its products through partners worldwide. Sales for the full-year 2012/2013 amounted to SEK 817 million. Sectra is listed on NASDAQ OMX Stockholm AB exchange. For more information about Sectra, visit our website at: www.sectra.com.