News | September 07, 2011

Sectra Completes Philips Mammography Transaction

September 6, 2011 – IT and medical technology company Sectra’s profit after net financial items for the company’s first quarter, May–July 2011, rose 25.6 percent to 16.2 million Swedish kronors corresponding to a profit margin of 9.6 percent. Sectra reports an operating profit of SEK 6.5 million and net sales of SEK 169.3 million. Order bookings rose 13.8 percent to SEK 190.8 million.

The reported outcome pertains to Sectra’s remaining operations and does not include Sectra’s modality operations in digital mammography that were acquired by Royal Philips Electronics. The agreement was signed in June and the transaction was finalized on August 31. The cash purchase consideration on a debt-free basis was 57.5 million euro. The agreement includes an additional purchase sum of 12.5 million euro, which falls due after five years if specially agreed conditions are met.

In the United States, uncertainty surrounding the current budgetary savings has had a dampening effect on the market. Sectra experienced the sales process taking longer than before, which is delaying orders for new projects.

“The economic trend will determine the size of our customers’ investments. Budgetary savings are affecting our customers within healthcare as well as authorities and defense. However, Sectra products and services contribute to enhance efficiency and save expenses in customers’ operations, which in the long term will imply continued growth in our markets,” said Jan-Olof Brüer, president and CEO of Sectra.

The transaction with Philips will create greater opportunities and increased resources for Sectra to expand its operations.

“A large portion of Sectra’s current revenues is generated by existing customers, in the form of additional sales and long-term agreements for products, services, support and upgrades. These customers give us a solid base for continued expansion. Increased sales of systems, products and services, combined with the work we carry out to make the installations and upgrades of our medical systems more efficient, will determine when we achieve our profit target of 15 percent,” Brüer said.

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