Swedish PACS firm Sectra achieved strong revenue and earnings growth in its 2017/2018 fiscal first quarter.
For the period (end-31 July), Sectra had net sales of 265.1 million Swedish kronor (27.8 million euros), up 15% on a nominal basis and up 15.4% on a currency-comparable basis from the 230.5 million Swedish kronor (24.2 million euros) recorded in the first quarter or fiscal 2016/2017.
The company had operating profit of 44.3 million Swedish kronor (4.7 million euros), up from 32.1 million Swedish kronor (3.4 million euros) in the same period last year. Sectra noted its Imaging IT Solutions unit contributed to the positive earnings trend, reporting significantly higher operating profit compared with the 2016/2017 fiscal first quarter.
On the downside, the vendor had order bookings of 227.6 million Swedish kronor (23.8 million euros), an increase of only 0.9% over the same period a year ago. President and CEO Torbjörn Kronander said order bookings did not quite reach the desired level and the company is continuing to focus on growth. As Sectra has a large market share in many of the markets it operates, growth opportunities are limited, he said.
"However, this is not the case in the U.S., where, in addition to a high level of customer loyalty, we also have a relatively small market share," he said in a statement. "We have been commissioned by several prominent healthcare providers in the U.S. over the past year, and I expect that we will continue to benefit from favorable business opportunities in the U.S. market going forward."
Sectra must enter new markets and channels to achieve long-term growth, and the firm has established itself in two new countries -- France and Canada -- over the past year, Kronander said.