Order bookings were at a record high for Sectra during the most recent 12-month period, but the volume of orders also had a negative impact on cash flow and earnings during the first half of the year.
For the six-month period (end-October 31), bookings increased 4.3% to 664 million Swedish kronor ($69.7 million U.S.) and net sales increased 14.1% to 696 million kronor ($73.1 million). Profit before tax amounted to 75.6 million kronor ($7.9 million).
For the second quarter, bookings increased 21.4% to 425 million kronor ($44.7 million). Net sales increased 14.9% to 363 million kronor ($38.1 million). Profit before tax amounted to 44.9 million kronor ($4.7 million).
Order bookings exceeded 2 billion kronor ($210.1 million) on a rolling 12-month basis, the firm said. The initial placement of a Sectra order results in high installation costs, but as the systems transition to the operational phase, the contracts generate multiyear revenue streams with healthy margins. The company said it expects to see that shift into revenue during the second half of 2019/2020.
