Continued strong sales growth of 50 percent

January 1 - June 30, 2014

• Net sales increased by 39 % to SEK 97.4 million (69.9).
• Operating profit increased to SEK 18.3 million (-1.0).
• Operating margin was 18.8 %.
• Profit before tax increased to SEK 18.9 million (-2.0).
• Earnings per share increased to SEK 0.63 (-0.08).

April 1-June 30 2014

• Net sales increased by 50 % to SEK 54.2 million (36.1).
• Operating profit increased to SEK 10.8 million (-0.4).
• Operating margin increased to 19.9 %.
• Profit before tax increased to SEK 11.4 million (-0.5).
• Earnings per share increased to SEK 0.38 (-0.01).
• New technology platform acquired to develop product for small/mid-size laboratories.
• CellaVision received the Bede Prize for its ability to develop innovation into useful and profitable products.

CEO's comments

Sales continue to be strong, with growth of 50 percent and an operating margin of 20 percent. Despite the profit being compared with the weak second quarter of 2013 this growth is very positive. Also in this quarter the North American market primarily accounts for the sales growth (+73 %) where we see continued sound development. EMEA also reports good sales growth (+72 %) and is now at a stabilized level.

   During the quarter CellaVision received another award; the Bede Prize. This confirms that our team has created a new market in health care by driving a paradigm shift from manual to digital microscopy. Of the available market we have now taken just over eleven percent and in our present market segment CellaVision's products lead with an approximate market share of 95 percent.

   We see growing interest in the market for digital solutions and increasing competition, with more similar products and new solutions, not least in China. As part of strengthening our product portfolio a new technology platform was acquired that we intend to use as a basis for an analyzer for smaller laboratories presently not included in our target market. With the new platform we may increase the potential numbers of customers three times to 45,000 laboratories. The potential world market will increase about 30 percent to 10 billion SEK. However, we estimate that it could take a couple of years before these products are available.

   Our new products, the CellaVision® DM9600 and the Advanced RBC Application, have had a very positive reception, which strengthens our market position and is a recognition of our ability to develop technological solutions. The products will be shown at the AACC Annual Meeting in Chicago at the end of July and the first analyzers were delivered at the start of the month. Work still remains to be done on registration and market introductions to replace our most sold product, the DM96, with the DM9600. As a result of this sales of the DM9600 are expected to be somewhat slow, which may impact the next quarter.

Yvonne Mårtensson, President and CEO

Questions concerning the report can be addressed to:
Yvonne Mårtensson, CEO, CellaVision AB
Tel: +46 708 33 77 82. Email: yvonne.martensson@cellavision.se
Magnus Blixt, CFO, CellaVision AB
Tel: +46 708 33 81 68. Email: magnus.blixt@cellavision.se