Three-month interim report May – July 2010/11

•  Order bookings increased 19* percent.
• Net sales rose 16* percent to SEK 1,627 M (1,440).
• Operating profit increased to SEK 153 M (89).
• Net income rose to SEK 103 M (56).
• Earnings per share after dilution improved to SEK 1.09 (0.62).
• Cash flow from operating activities improved to SEK -30 M (-138).
  Cash flow after investments was SEK -285 M (-164).
• In fiscal year 2010/11, net sales are expected to grow by more than 10 percent in local currency. Operating profit in SEK is expected to grow by more than 15 percent.

[REMOVED GRAPHIC] 
See PDF

President and CEO Tomas Puusepp comments  

I am very pleased with Elekta’s performance in the first three months of our fiscal year 2010/11. Demand remained strong for Elekta’s clinical solutions and services. Order bookings increased by 19 percent in local currency. All regions and product areas showed good performance, with particularly strong growth in Region Europe, Middle East and Africa. Operating profit rose to SEK 153 M (89) mainly due to higher sales volumes.

Elekta’s success derives from providing comprehensive and effective clinical solutions and services for the treatment of cancer and brain disease. Our world leading solutions in image-guided radiation therapy, stereotactic radiosurgery as well as in oncology software, make it possible for oncologists and neurosurgeons to effectively treat tumors, blood vessel deformations and functional illnesses with maximum precision, while sparing healthy tissue. We are committed to improving patient care through innovation and continuous enhancement of our product portfolio. This is achieved by pursuing clinical research in close cooperation with the foremost universities and hospitals worldwide.

The recent acquisition of Resonant Medical Inc. has added new solutions for image guidance to our product portfolio such as Clarity™ as well as highly skilled R&D resources in oncology imaging. With this acquisition Elekta has strengthened its leadership in motion management, which we regard as a key area in the improvement of advanced cancer treatment. Clarity™ soft tissue visualization, which can be integrated with any linear accelerator platform, was exhibited for the first time by Elekta in Europe at the 2010 meeting of the European Society for Therapeutic Radiology and Oncology (ESTRO) held in September.

The strong development for Elekta Neuroscience has continued in the first quarter with high demand for Leksell Gamma Knife® Perfexion™. We expect advantages of stereotactic radiosurgery in the treatment of brain metastases to receive greater attention worldwide in the coming years. As we are introducing the technology to new customers, the installed base of Leksell Gamma Knife® continues to expand.

There is an increased need for cancer care in the markets where Elekta operates. Growth is particularly strong in emerging markets where Elekta is the market leader. We continue to expand geographically to make cancer care available for more people around the world. Key success factors are our long term customer relations, our innovative capabilities and our commitment to the highest level of service and customer care. We have more than 5,000 hospitals as our customers worldwide and as this number is increasing so does the significance of our services and software businesses.

Elekta’s financial outlook for the fiscal year 2010/11 remains unchanged with an increase in net sales by more than 10 percent in local currency, and operating profit increase in SEK of more than 15 percent.

Tomas Puusepp
President and CEO

 

For further information, please contact:
Tomas Puusepp, President and CEO, Elekta AB (publ)
Tel: +46 8 587 25 520, e-mail: [email protected] 

Håkan Bergström, CFO, Elekta AB (publ)
Tel: +46 8 587 25 547, e-mail: [email protected]

Stina Thorman, Vice President Corporate Communications, Elekta AB (publ)
Tel: +46 8 587 25 437, e-mail: [email protected]