Swedish PACS vendor Sectra had strong growth in revenue and profitability in the fourth quarter of its 2016/2017 fiscal year.
For the fourth quarter (end-April 30), Sectra had net sales of 340.8 million Swedish kronor (34.9 million euros), up from 8.2% on a nominal basis and 6.6% on a currency-adjusted basis from the 315.1 million Swedish kronor (32.3 million euros) recorded in the fourth quarter of 2015/2016. The company had operating profit of 74.8 million Swedish kronor (7.7 million euros), up from 58 million Swedish kronor (5.9 million euros) in the same period a year ago.
For the 2016/2017 fiscal year, Sectra had net sales of 1.14 billion Swedish kronor (116.8 million euros), up 6.3% on both a nominal and currency-adjusted basis from the 1.07 billion Swedish kronor (109.6 million euros) achieved in the 2015/2016 fiscal year. The firm had operating profit of 200.4 million Swedish kronor (20.5 million euros), up from operating profit of 165.5 million Swedish kronor (17 million euros).
President and CEO Torbjörn Kronander said in a statement that order bookings in its Imaging IT Solutions business area did not quite meet expectations, however. This was partly due to the trend in the U.K., where the company faced a falling currency rate and a shrinking market in local currency, he said. In addition, Sectra now has a large radiology PACS market share in certain countries that makes it difficult to continue growing at the same rate as in the past.
"However, in the U.S., for example, where Sectra so far has a relatively small market share and thus significant potential, order bookings are growing sharply," Kronander said. "To create the scope for further growth in Imaging IT Solutions, we are also focusing on establishing a presence in two new countries: France and Canada. However, we do not expect to see the results of this work until a few years from now, since we operate in a slow industry."
