· Order bookings increased 32 percent to SEK 2,252 M (1,700), equivalent to 13 percent excluding Nucletron, based on unchanged exchange rates.
· Net sales increased 19 percent to SEK 1,695 M (1,428), equivalent to 1 percent excluding Nucletron based, on unchanged exchange rates.
· Operating result amounted to SEK 63 M (92).
· Net income amounted to SEK 15 M (46). Earnings per share amounted to SEK 0.13 (0.50) before dilution and SEK 0.13 (0.50) after dilution.
· Cash flow from operating activities was SEK -151 M (159). Cash flow after investments was SEK -254 M (108), including acquisition effects of SEK -79 M (-32).
· On 19 June, Elekta acquired Radon Ltda. group, one of Brazil’s leading companies in service, installation and aftermarket service of linear accelerators. Most of the service contracts held by the company are with clinics that use equipment from Siemens.
· During the first quarter, Agility(TM), Elekta’s new beam-shaping solution, received 510(k) clearance from the U.S. Food and Drug Administration (FDA) and clearance in Japan from the Pharmaceutical and Medical Devices Agency, PMDA.
· For the 2012/13 fiscal year, net sales is expected to grow by more than 15 percent in local currency, including Nucletron.
· Due to the strengthening of the Swedish krona, the outlook for the company’s growth in operating profit in SEK has been changed from over 17 percent to over 15 percent for the fiscal year 2012/13. Currency is estimated to have a neutral impact including hedging effects on operating profit for fiscal year 2012/13.
* Compared to last fiscal year excluding Nucletron based on unchanged exchange rates.
President and CEO comments
Elekta’s focus on its customers and their patients, combined with strategic investments in emerging markets, are yielding favorable results. Demand for Elekta’s solutions continued to rise and order bookings in the first quarter increased 13* percent. Order bookings in Asia rose 11* percent. Following the close of the quarter, we signed our largest order to date in China valued at USD 35 M. The order further strengthens our position as the leading supplier in China, where Elekta is currently represented in seven of the ten leading clinics. The trend was favorable in North and South America. All 50 of the top-ranked cancer clinics in the US have solutions from Elekta**. In Europe, the scenario remained mixed with favorable development in the northern regions while the trend in southern Europe is weaker due to the ongoing financial crisis. At present, it is difficult to predict the full effects of this or when there will be an improvement in the situation.
The success of Elekta’s new Agility beam-shaping solution continues. During the quarter, we received 510(k) clearance from the U.S. Food and Drug Administration (FDA) and clearance from the Pharmaceutical and Medical Devices Agency, PMDA in Japan. These approvals mean that patients in most of our major markets can now receive treatment using the new solution. At present, Agility is being used to treat patients at clinics in some 10 countries throughout the world.
With regard to deliveries, the first quarter, which largely comprises the summer period, is seasonally the weakest for Elekta. Net sales rose 1* percent. The trend in Asia was strong while deliveries in North and South America and Europe were weaker. Nucletron noted comparatively low volumes during the quarter, due to seasonality and the fact that the products largely form part of comprehensive solutions from Elekta, thus entailing longer delivery cycles. Order bookings for our brachytherapy products match our expectations, and the trend for Nucletron is expected to be strengthened going forward.
Operating profit in the first quarter was lower than in the corresponding quarter last year, which was primarily an effect of a limited volume increase. However, we anticipate normal seasonal variations during the fiscal year including a significant increase in operating profit in forthcoming quarters.
Elekta foresees significant potential for further growth, both through expansion in emerging markets and established markets. Looking to the year ahead, we believe that market demand will generally remain favorable.
With planned deliveries from our order backlog and continued demand in our markets, we anticipate that net sales for full-year 2012/13 will increase by more than 15 percent in local currency, including Nucletron.
Due to the strengthening of the Swedish krona, the outlook for the company’s growth in operating profit in SEK has been changed from over 17 percent to over 15 percent for the fiscal year 2012/13. Currency is estimated to have a neutral impact including hedging effects on operating profit for fiscal year 2012/13.
Elekta’s efforts to develop new technology are intensifying and we remain strongly comitted to product development. Our project aimed at combining treatment with a linear accelerator with advanced magnetic resonance (MR) is progressing. We look forward to even more patients gaining access to advanced cancer care for curative purposes and a better quality of life.
President and CEO
*Calculated excluding Nucletron and based on unchanged exchange rates
Elekta will host a telephone conference 13:45-14:30 CET on September 4, with President and CEO Tomas Puusepp and CFO Håkan Bergström.
To take part in the conference all, please dial in about 5-10 minutes in advance and use the access code 920990. Swedish dial-in number: +46 (0)8 5052 0110, UK dial-in number: +44 (0)20 7162 0077, US dial-in number: + 1 334 323 6201.
The telephone conference will also be broadcasted over the internet (listen only). Please use the link: http://webeventservices.reg.meeting-stream.com/67238_elekta