Elekta AB reports six month financial results.STOCKHOLM Stockholm (stŏk`hôlm'), city (1995 pop. 692,954), capital of Sweden and of Stockholm co., E Sweden, situated where Lake Mälaren flows into the Baltic Sea. , Sweden--(BUSINESS WIRE)--Dec. 13, 1994--
SIX MONTH INTERIM REPORT
May 1 - October 31, 1994
o Revenues rose by 37 percent, primarily through introduction of new products and volume growth. o Operating results increased by 125 percent 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. 34.2 million. o Earnings per share rose by 45 percent and it amounted to SEK 3.98, despite the increase of 31 percent in the number of shares. o New products were launched successfully. o Important investments were made in new markets, primarily in Asia. -0- The global market's demand for Elekta's products continued to show strong growth. A positive trend was maintained in the company's most important markets, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Asia, which contributed to the Group's strong gains in sales and earnings during the first six months of the fiscal year. Sales Consolidated revenues of the Elekta Elekta, is a Swedish medical systems company founded by Lars Leksell, supplying neurosurgery, radiosurgery, radiotherapy, and magneto-encephalography equipment. History Group rose by SEK 83.6 million to SEK 311.3 million (227.6)(a), or by 37 percent compared with the corresponding period of 1993. Elekta's growth is attributable primarily to the introduction of new products and higher sales volume for a number of product groups. Exchange rate fluctuations had only a marginal affect on the growth in sales and earnings during the period. The Gamma Knife Gamma Knife A trademark for a radiologic nonsurgical device used in stereotactic radiosurgery. Gamma knife A surgical tool that focuses beams of radiation at the head, which converge in the brain to form a lesion. was sold during the period in Asia, the U.S. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . Interest in the company's products is considerable,
particularly in Asia. The introduction of equipment for magnetic
encephalography encephalography /en·ceph·a·log·ra·phy/ (en-sef?ah-log´rah-fe) radiography demonstrating the intracranial fluid-containing spaces after the withdrawal of cerebrospinal fluid and introduction of air or other gas; it includes (MEG Shorthand for "mega." For example, 10 megs means 10 megabytes. It generally refers to bytes, not bits. See mega. Meg (Maggie) Tam O’Shanter’s gray mare that lost her tail to the witch. [Scot. ) has been successful and several orders were received in Japan during 1994. The stereotactic stereotactic /ster·eo·tac·tic/ (-tak´tik) 1. characterized by precise positioning in space; said especially of discrete areas of the brain that control specific functions. 2. pertaining to stereotactic surgery. and imaged-based systems product area experienced favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. growth, in part through the market introduction of new products such as the Viewing Wand Viewing Wand® Imaging An intraoperative neurosurgical imaging device for head & neck procedures, and for spinal surgery . Progress has been very positive for the newly established U.S. subsidiary Precision Therapy Inc. in Miami. This company supplies software and instruments for cancer treatment and quality assurance in cancer therapy. Revenues exceeded SEK 30 million during the year's first six months and the company expects to turn in a profit in its first full operating year. -0- (a) Figures in parentheses See parenthesis. parentheses - See left parenthesis, right parenthesis. refer to corresponding amounts for the period May 1 - October October: see month. 31, 1993. The total order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. for the Elekta Group as of Oct. 31, 1994 amounted to SEK 186 million. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. Operating expenses amounted to SEK 268.3 million (207.1). Significant investments were made during the period, most notably in sales and marketing and in research and development. Offices were established and new operations are being set up in Japan, China, India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. and the U.S. The rate of increase in expenses has been lower than the growth in revenues thanks to a drop in the cost of materials and efforts to raise operating efficiency. Earnings Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. after depreciation amounted to SEK 34.2 million (15.2), an increase of 125 percent. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: thereby improved from 6.7 percent to 11.0 percent. Net financial income and expenses were affected negatively by unrealized interest losses on an investment in a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. interest fund which decreased in value due to the rise in interest rates. The loss has been offset, however, by interest income on other short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. Income before taxes amounted to SEK 35.0 million (19.0), corresponding to an increase of 84 percent. The profit margin rose by 2.9 percentage points to 11.2 percent. Net income for the period amounted to SEK 29.4 million (15.6), an increase of 88 percent. Order intake and thereby results can vary during the year primarily due to varying purchase patterns in the health care sector in different countries. Earnings per share Earnings after taxes as a ratio of the average weighted number of shares were SEK 3.98 (2.74), an increase of 45 percent. The weighted number of shares rose by 31 percent for comparable periods. For the full-year 1993/94, earnings amounted to SEK 8.05 per share after deducting SEK 1.60 for a non-recurring gain. In evaluating the rate of growth in earnings per share, notice should be taken of the increase in the number of shares. Investments Investments amounted to SEK 24.4 million (6.2) during the period and pertained primarily to new establishments. In addition, 8 percent of the shares of Surgical Technology Group, Ltd., UK was acquired during the period. Liquidity and financial position Liquid funds amounted to SEK 206.4 million (75.6). The company's financial position is very strong. The ratio of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities to 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. is less than 5 percent. Share capital As of Oct. 1, 1994, all of the outstanding options held by employees and shareholders had been exercised and 500,000 new Class B shares were issued. The proceeds to the company amounted to SEK 21.8 million (net). The number of the company's shares subsequently amounts to 7,897,180, or 7,689,000 as a weighted average for the full-year 1994/95, against a weighted average of 5,980,000 for the full-year 1993/94. This corresponds to an increase of 29 percent. Parent Company The Parent Company's revenues amounted to SEK 107.6 million (41.1) and its income before taxes was SEK 4.8 million (8.4) for the period. Forecast for 1994/95 Elekta's growth and profitability are expected to be strong during the remainder of the fiscal year. Sales and earnings are expected to well exceed last year's levels. Financial reports 1995 The preliminary report for fiscal 1994/95 will be released on June 20, 1995 and the Annual General Meeting will be held on Sept. 20, 1995. (Please note the new date!) -0-
Elekta AB
Consolidated Income Statement (SEK Million)
1994 1993 1993/94
May 1 - Oct. 31 May 1 - Oct. 31 May 1 - April 30
(6 months) (6 months) (12 months)
Revenues 311 227 506
Operating expenses 268 207 444
Operating Income
before depreciation 43 20 62
Depreciation 9 5 12
Operating income
after depreciation 34 15 50
Share in earnings
of associated
companies 0 2 2
Financial income and
expenses 1 2 12
Income after
financial items 35 19 64
Taxes 5 3 6
Net income 30 16 58
Consolidated Balance Sheet
(SEK Million)
Oct. 31, Oct. 31, April 30
1994 1993 1994
Assets
Cash and cash equivalents 206 76 186
Other current assets 303 256 267
Fixed assets 99 74 82
Total assets 608 406 535
Liabilities and
shareholders' equity
Current liabilities 129 190 104
Long-term liabilities 22 29 23
Shareholders' equity 457 187 408
Total liabilities and
shareholders' equity 608 406 535
Key Financial Ratios
1994 1993 1993/94
May 1 - Oct. 31 May 1 - Oct. 31 May 1 - April 30
(6 months) (6 months) (12 months)
Operating margin, % 11,0 6,7 9,9
Profit margin,
before taxes, % 11,2 8,3 12,7
Per-share data:
Earnings after
taxes, SEK 3:98 2:74 8:05(a)
Shareholders'
equity, SEK 57:87 32:82 55:10
Average number
of shares (000s) 7 481 5 697 5 980
Number of shares
at end of period
(000s) 7 897 5 697 7 397
(a) Reduced by SEK 1.60 for non-recurring revenue
EDITOR'S NOTE: As of December 12, 1994, US$1 equals 7.5 SEK.
Stockholm, December 13, 1994
Elekta AB
Laurent Leksell
President
Audit Report
We have reviewed this interim report and in doing so followed the
recommendation of the Swedish Institute of Authorized Public
Accountants (FAR). A review as such is considerably limited in
comparison with a full-fledged audit. There have been no
indications that this interim report does not comply with the
requirements of Swedish stock market and company law.
Stockholm, December 13, 1994
Coopers & Lybrand AB
Lennart Danielsson Dennis Svensson
Authorized Public Accountant Authorized Public Accountant
CONTACT: Elekta AB, Stockholm
Sverker Littorin, 011-46-8-402-5400
or
The Anne McBride Company Inc., New York
Robert Rinderman, 212/752-0504
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion