LINKOPING, Sweden, Dec. 10, 2002 (PRIMEZONE) -- Sectra (Other OTC:SSBBF) (Stockholm:SECTb) reports increased order bookings, sales and profits for the first half of the 2002/2003 fiscal year. Compared with the corresponding period of the preceding fiscal year, order bookings rose 37 % to SEK 235.5 million (171.5) and sales rose 85 % to SEK 266.7 million (144.2). Pretax profit amounted to SEK 35.7 M (15.9), corresponding to a profit margin of 13 %. Earnings per share rose to SEK 0.73 (0.34).
"Sectra's positive development is continuing," commented Jan-Olof Bruer, Sectra's President and CEO. "This derives from our having finalized several major hospital projects and from increasingly successful sales of our eavesdrop-secure GSM telephone in international markets."
Sectra's goal is to gradually expand internationally, with initial focus on Western Europe and North America. To increase the company's international sales, Sectra is cooperating with partners that already have a solid customer base in these markets. One example is the successful cooperation with Philips Medical Systems, which recently has been extended for another five year period.
"Sectra's technology is contributing to improvements and greater efficiency in radiology operations throughout the world, by our own management as well as through our partners," continued Jan-Olof Bruer.
During the most recent quarter, Sectra opened an office in the U.K. to meet increasing demand in the British market for digital radiology systems. Within medical systems, Sectra has also entered into cooperations with several smaller distributors in Europe and the U.S.
"By expanding our cooperation through partnerships, we reach a larger market with our products," continued Bruer. "This type of cooperations is an important complement to our existing sales channels within medical systems."
Operations within secure communications systems are increasingly marked by the international trend toward a completely new defense structure, using network-based information processing. Sectra has secured a number of orders linked to the production of demonstration models for defense forces of the future. The company has also obtained an order from the Swedish Defense for a new high-speed encryption system for international use and its cooperation with Norwegian partner Kongsberg has resulted in several new orders.
"Through Kongsberg, we have received orders during the past quarter for our eavesdrop-secure mobile phone from the Dutch and Czech armed forces, and from NATO," said Jan-Olof Bruer.
The market for wireless information systems has been adversely affected by the general market conditions, with low investment volumes in both the financial market and the aerospace industry.
"Operations within wireless information systems are currently being restructured to reduce costs and we have also made cuts in the workforce, primarily to move personnel to other areas of our business," continued Bruer.
"Sectra has a strong technology platform. Our solutions are aimed at growth markets. Our strong home market provides us with a stable base for international expansion. Therefore, it is our evaluation that Sectra will continue to expand with favorable profitability," concluded Jan-Olof Bruer.
For further information, please contact:
Sectra AB Dr. Jan-Olof Bruer, President and CEO +46 13 23 52 09 job@sectra.se
Visit Sectras Website http://www.sectra.com
Sectra's Operations
Sectra has its roots in Linkoping Technical University and is one of Sweden's fastest growing high-tech companies in the IT area. Since the mid-1980s, Sectra has successfully conducted development and sales of high-technology medical IT and telecommunications products. Today, the business includes products in medical systems, secure communication systems and wireless information systems.
Business is conducted in seven countries with a total of 260 employees. Sales for the fiscal year May 2001-April 2002 reached SEK 426 million. Since March 1999, Sectra's shares have been quoted on the O-list of the Stockholm Exchange.
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