CellaVision AB: Interim Report January-September 2014

Continued strong sales trend in Europe and North America. Zlatko Rihter appointed President/CEO.

July 1-September 30, 2014

Net sales increased by 4 % to SEK 47 million (45.1).Operating profit was SEK 7.7 million (10.7).The operating margin was 16.3 % (23.7). Profit before tax was SEK 7.9 million (10.4).Earnings per share were SEK 0.20 (0.33).Sales start of two new products; CellaVision®DM9600 and CellaVision®Advanced RBC Application.

January 1-September 30, 2014

Net sales increased by 26 % to SEK 144.4 million (115).Operating profit increased to SEK 26 million (9.6).The operating margin increased to 18 % (8.4).Profit before tax increased to SEK 26.8 million (8.4).Earnings per share increased to SEK 0.83 (0.26).

Significant events after the close of the quarter

Zlakto Rihter was appointed as President/CEO, and starts no later than on February the 1st , 2015.Sysmex DI-60 and CellaVision®DM1200 approved by the CFDA to be sold in China.VP Engineering appointed on November 1st, 2014.

CEO's comments
I'm pleased to see the positive sales trend we have seen since autumn last year is continuing. Sales in the quarter were SEK 47 million, with sales growth of 4 per cent and operating margin of 16.3 per cent. Developments in North America and EMEA lie behind the sales growth and for the first three quarters of the year we report growth of 26 per cent with an operating margin of 18 per cent. At the same time as we have had a good sales trend the work of sound cost control has continued. This contributes to our generating a strong cash flow from operating activities of more than SEK 13 million during the quarter.

The sales start for the new product CellaVision®DM9600, replacing the CellaVision®DM96, exceeded expectations even though some initial slowness was noted. Our new software, CellaVi­sion®Advanced RBC Application, was launched in parallel, with the first order going to a Canadian customer. Much work still remains with both products' registration and market preparation. As our new prod­ucts are fully introduced we will be able to further strengthen our position in the market.

Sales to the North American market and Europe make up 91 per cent of total sales for the quarter. The Asian market continued at a lower level than the previous year, largely due to the fact that market­ing approval required for new products had not yet been granted in China. After the close of the quarter, however, both Sysmex DI-60 and CellaVision®DM1200 received this approval, which provides the conditions for the growth we see before us in China and other countries in the region.

During the quarter a technical pre-study was started to evaluate the new technology platform acquired in the previous quarter. The pre-study is expected to be completed by the end of the year and the long-term ambition with this platform is to develop new products for laboratories that are smaller than those that have made up our target market to date. With three quarters behind us we are proud to deliver the strongest financial performance ever in the history of the company.

Zlatko Rihter has been appointed President/CEO, starting on February the 1st 2015, and I will leave my position as President/CEO of CellaVision on the last day of December.

It has been a fantastic journey that I have partic­ipated in - from a development project to a global company with products in some 50 countries. I want to thank all employees, shareholders and partners for entrusting the leadership of CellaVision to me during my 16 years as President/CEO. At the same time I wish Zlatko Rihter and CellaVision much continued success!

Yvonne Mårtensson, President and Chief Executive Officer

Key Ratios

(MSEK)Jul-Sep
2014Jul-Sep
2013Jan-Sep
2014Jan-Sep
2013Jan-Dec
2013 Net sales 47.0 45.1 144.4 115.0 179.9 Gross profit 30.4 27.5 94.6 72.8 112.6 Operating profit 7.7 10.7 26.0 9.6 25.9 Operating margin, % 16.3 23.7 18.0 8.4 14.4 Profit/loss before tax 7.9 10.4 26.8 8.4 24.7 Cash flow for the period 12.3 1.5 0.6 -3.6 11.6

Questions concerning the report can be addressed to:
Yvonne Mårtensson, President/CEO, CellaVision AB
Tel: 0708-33 77 82. E-mail: yvonne.martensson@cellavision.se
Magnus Blixt, CFO, CellaVision AB
Tel: 0708-33 81 68. E-mail: magnus.blixt@cellavision.se

CellaVision AB Interim Report January-September 2014


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Source: Cellavision AB via Globenewswire
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