Elekta AB Reports On Operations for the Fiscal Year Ended April 30, 2001.Business Editors, Health/Medical Writers STOCKHOLM, Sweden--(BW HealthWire)--June 19, 2001 - Operating profit amounted to SEK 92 M (loss: 37), an improvement of SEK 129 M. - Continued strong order bookings, up 33 percent to SEK 2,402 M (1,805). - Order backlog at all time high, SEK 2,122 M (1,714). - Net sales for comparable units rose 26 percent to SEK 2,160 M (1,789). - Cash flow remained positive and amounted to SEK 226 M (42). - Strong fourth quarter. Operating profit amounted to SEK 67 M (-11) and cash flow was SEK 176 M (79). - Net sales and operating profit for fiscal year 2001/02 as a whole are expected to be better than in 2000/01. Elekta is a world-leading supplier of advanced and innovative radiation oncology radiation oncology n. The branch of radiology that deals with the use of ionizing radiation to treat cancers. radiation oncology and neurosurgery neurosurgery /neu·ro·sur·gery/ (noor´o-sur?jer-e) surgery of the nervous system. neu·ro·sur·ger·y n. Surgery on any part of the nervous system. solutions and services for precise treatment of cancer and brain disorders. Elekta's solutions are clinically effective, costefficient and gentle to the patient. Order bookings and order backlog Group order bookings, adjusted for the divestment divestment to strip one's investment from an entity. of IGS IGS - Internet Go Server. operations in November 1999, amounted to SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2,402 M (1,805), up 33 percent. Order bookings for neurosurgical products increased 34 percent to SEK 836 M (625) and oncology products with 33 percent to SEK 1,566 M (1,180). Order bookings in the fourth quarter amounted to SEK 836 M (729), an increase of 15 percent. Elekta market leader in Europe Order bookings in Europe, the Middle East and Africa Europe, the Middle East and Africa, usually abbreviated to EMEA, is a regional designation used for government, marketing and business purposes. It is particularly common amongst North American based companies, who often divide their international operations into the rose 43 percent to SEK 1,103 M (772). In particular in Europe and the Middle East substantial investments and modernization are made in the healthcare sector. Great Britain Great Britain, officially United Kingdom of Great Britain and Northern Ireland, constitutional monarchy (2005 est. pop. 60,441,000), 94,226 sq mi (244,044 sq km), on the British Isles, off W Europe. The country is often referred to simply as Britain. for example has implemented an extensive expansion and modernization of oncology care. Elekta was highly successful in the procurement of resulting contracts and strengthened its market-leading position in the European market. Strong order bookings in the US during the fourth quarter Order bookings in North and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. amounted to SEK 748 M (634), an increase of 18 percent. The recently implemented reorganization and the strengthening of the sales and service organization resulted in improved order bookings during the fourth quarter. Breakthrough in oncology in Japan Order bookings in Japan were lower than in the preceding year and amounted to SEK 266 M (320), due to lower order bookings for magnetic encephalographs. Sales in Japan consist predominantly of neurosurgical products. Approval of Elekta's oncology products was received from the Japanese authorities and the first system for radiation of cancer was delivered during the fourth quarter. Strong recovery in Asia Order bookings in Asia developed positively and rose to SEK 285 M (79). The health-care markets in Asia are improving successively in pace with economic recovery in the region. During the year, Elekta reported successes in China, Korea, Taiwan and Australia. The Group's order backlog at April 30, 2001 rose 23 percent to SEK 2,112 M (1,714), a record high. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight The Group's net sales rose 21 percent to SEK 2,160 M (1,789). Excluding operations divested during 1999/2000 net sales increased 26 percent. Currency movements, mainly the weakness of Swedish kronor against US dollars and Japanese yen “Yen” redirects here. For the other use, see Yen (disambiguation). “JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young. increased net sales positively by 8 percent. Net sales of neurosurgical products rose to SEK 833 M (718), and net sales of oncology product rose to SEK 1,327 M (1,071). The number of deliveries of installations for neurosurgery and oncology increased during the year. Net sales for products and services including technical service in the after sales market increased by 40 percent. The after sales market accounts for 29 percent of net sales. Result Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. amounted to SEK 92 M (loss: 37), an improvement of SEK 129 M. The improvement was mainly due to higher net sales and favorable currency trends. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 4 percent (neg: 2). Operating profit for the fourth quarter amounted to SEK 67 M (loss: 11), an improvement of SEK 78 M. The improvement was mainly due to higher net sales. Investments in research and development amounted to SEK 127 M (SEK 119 M in the preceding year, excluding IGS). These investments, which are expensed as incurred, corresponded to 6 percent (7) of net sales. Net financial items amounted to an expense of SEK 23 M (expense: 32), including net interest expenses of SEK 35 M (56), of which the convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. loan accounted for SEK 25 M (45). Earnings from participations in associated companies amounted to a loss of SEK 1 M (profit: 3), and foreign exchange differences totaled SEK 13 M (21). Profit before taxes amounted to SEK 69 M (loss: 69). The profit after taxes was SEK 61 M (loss: 77). Profit per share amounted to SEK 2.21 (loss: 4.24). Return on equity amounted to 10 percent (neg: 22) and return on capital employed Return on capital employed (ROCE) Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets). was 12 percent (neg: 3). Investments and depreciation Investments in intangible and tangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → amounted to SEK 50 M (57). Amortization/depreciation of intangible and tangible fixed assets totaled SEK 74 M (78). Liquidity and financial condition Cash flow before investments was a positive SEK 268 M (11), as a result of the reported profit and a reduction in working capital. Cash flow after investments and divestments was a positive SEK 226 M (42). As of April 30, 2001, the Group's liquid assets Cash, or property immediately convertible to cash, such as Securities, notes, life insurance policies with cash surrender values, U.S. savings bonds, or an account receivable. amounted to SEK 434 M, compared with SEK 249 M as of April 30, 2000. SEK 130 M (119) of bank balances is pledged, primarily as guarantees for received customer advances. If conversion does not occur prior to June 30, 2001, outstanding convertible debenture loans in a nominal amount of SEK 233 M must be refinanced not later than December 31, 2001. The conversion price is SEK 60.20. Full conversion results in 3,875,139 new B shares, corresponding to 12 percent of share capital. On June 18, SEK 66 M, corresponding to about 1,097,000 new shares was submitted for conversion. Other interest-bearing liablilities decreased to SEK 47 M which means that the net debt/equity ratio Debt/Equity Ratio A measure of a company's financial leverage calculated by dividing long-term debt by shareholders equity. It indicates what proportion of equity and debt the company is using to finance its assets. is negative, -0.23. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased to SEK 678 (576) M at April 30, 2001, as a result of the profit in the period of SEK 61 (loss 77) M, new issues SEK - M (344) option premiums of SEK 2 M (1) and translation differences of SEK 39 M (-5). The equity/assets ratio increased to 33 (31) percent. Full conversion of the convertible debenture loan would increase equity/assets ratio with 11 percentage points. New tax recommendation The Swedish Financial Accounting Standards Council has released a new recommendation regarding income taxes. The recommendation is to be applied in fiscal years starting as of January 1, 2001. The recommendation, which involves a change in accounting principles for Elekta, will be applied for the first time in the three-month interim report for the 2001/2002 fiscal year. The change in accounting principles means that the new principle is applied retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin and that information for comparable years is adjusted. Deferred tax liabilities and tax receivables are reported in the balance sheet, with the corresponding change in shareholders' equity. Elekta has large loss carryforwards Loss Carryforward An accounting technique with which a company applies net operating losses of the current year to future year's profits in order to reduce tax liability. Notes: in Sweden, the UK and US. Employees The average number of employees in the Group was 807 (794). The number of employees at the close of the period was 854, compared with 778 as of April 30, 2000. Parent Company Parent Company operations comprise Group management, joint Group functions and financial management. Parent Company profit before taxes was SEK 25 M (loss: 57). The figure for the current fiscal year includes dividends of SEK 50 M from subsidiary. The figure for the preceding year included SEK 18 M gain on the divestment of the IGS operations. The average number of employees was 13 (14). Future prospects Net sales and operating profit for fiscal year 2001/02 as a whole are expected to be better than in 2000/01. Net sales for the first half of the year are expected to be lower than in the second half. Proposed dividend The Board of Directors is not proposing that a dividend be paid for fiscal year 2000/01. Annual General Meeting The Annual General Meeting of the Company will be held on Thursday, September 27, 2001 at 2:00 p.m. in the Haga Forum Conference Center, Annerovagen 4, Solna. Financial information A three-month interim report will be issued on September 27, 2001. Stockholm, June 19, 2001 ELEKTA AB (publ) Laurent Leksell President For additional information, please call: Lars Jonsteg, Senior Vice President, Corporate Relations, Elekta AB (publ) +46 587 254 82. In the US, please contact Patrick Lyon of Taylor Rafferty at (212)889-4350. Additional information on Elekta is available on the Internet: www.elekta.com Potential ordinary shares from convertible debentures and warrants will not dilute the per share data. The same accounting priciples and methods of computation are followed in 2000/01 as in 1999/2000. NOTE TO EDITORS: FOR TABULAR INFORMATION, PLEASE CONTACT TAYLOR RAFFERTY, NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . |
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