Interim report Q3 2010

PRESS RELEASE

 

Gothenburg, Sweden. October 29, 2010

 

Read the full Abstract.

 

Continued sales growth and increased operating margin

 

 

·          EBITDA margin increased in the quarter to 15 % (13.7 %)

·          Sales growth and earnings was affected by currency rate fluctuations

·          Gross margin remained stable at 80 %

 

 

THIRD QUARTER

·         Net sales increased to SKr  32.7 (31.9) million

·         EBITDA increased to SKr 4.9 (4.4) million

·         Earnings before tax decreased to SKr 0.9 (3.1) million

·         Net earnings decreased to SKr 0.9 (2.1) million

·         Earnings per share decreased to SKr 0.04 (0.1)**

 

YEAR-TO-DATE / FIRST NINE MONTHS

·         Net sales increased to SKr 102.4 (92.6) million

·         EBITDA increased to SKr 11.5 (7.7) million

·         Earnings before tax decreased to SKr 3.2 (4.0) million

·         Net earnings after tax increased to SKr 26.0 (25.0) million*

·         Earnings per share decreased to SKr 1.08 (1.35)**

* includes deferred income tax of SKr 22.7 (22.0) million

** affected by rights issue for SKr 24.1 million which was carried out during December 2009

 

 

BUSINESS PROGRESS

·         Biolin Scientific  has introduced the new product brand KSV NIMA

·         Nordea Fonder purchased 4.8 % of Biolin Scientific AB’s shares, making it the third largest shareholder

·         Biolin Scientific has announced conversion of 149,121 convertible bonds attributable to the acquisition of Farfield Group Ltd that was completed during the second quarter

 

 

 

CEO COMMENT

 

Increased sales and strong earnings

During the third quarter of 2010 sales increased by 2.5 %. The EBITDA margin increased to 15 %, which was in line with the goal for the year. However, the increase in sales was lower than expected due to a weak quarter for both Q-Sense and Osstell. We have long sales cycles which can lead to large fluctuations between quarters. In the third quarter the new product brand KSV NIMA, a merger of KSV and Nima, was introduced to the market. Sales following the launch have been good with a 21 % increase in this area, compared to the third quarter in 2009. The positive development that we have seen in Farfield during its first two quarters is expected to continue.

 

Net sales growth for the nine months was 10.6 % (25.1%). For the first nine months the EBITDA margin increased to 11.2 % and on an annualised basis it increased to 14.2 %. This was yet another strong quarter for Europe, in particular in the United Kingdom, and in the Chinese market there were positive developments too. After nine months, growth has also been good in the U.S. as well as in Japan.

 

Currency effects

During 2010 there have been significant negative currency fluctuations and the impact of this effect increased in the third quarter. As a result the reported accumulated annual turnover has been reduced by 11 %. Calculated in local currency however, the net sales growth has been 21 %. Our main currencies for sales are EUR and USD.

 

Company outlook

We expect the net sales growth for 2010 to be below 20 % due to the strong Swedish currency, which is lower than what was earlier communicated. We continually believe in an annual EBITDA margin of 15 %. For Osstell and the diagnostics instruments we foresee a good final quarter with continued growth, especially in the U.S. We also believe in a positive final quarter for our scientific instruments.

 

Exciting development

Biolin Scientific sells analytical instruments to researchers working with different types of nanotechnology and the developments in this field have been significant in recent years. The Nobel Prize in physics 2010 clearly proves that Biolin Scientific is heading in the right direction. Andre Geim and Konstantin Novoselov received the prize for their studies of the one atom thick structure of coal in graphene. They have shown interesting details on the material’s properties, which are open for potential use in e.g. transparent touch screens, light panels, solar cells or satellites. Many researchers are now exploring ways to produce the thin layers of graphene and with great pleasure we have seen that one method used by several research groups is KSV NIMA’s LB technique. Andre Geim and Konstantin Novoselov’s work shows that the type of analytical instruments that Biolin Scientific develops and sells have huge potential.

 

Jan Wahlström, CEO Biolin Scientific

 

 

CONTACT 
Jan Wahlström
CEO of Biolin Scientific AB (publ)
Direct: +46 732 32 39 26
E-mail: jan.wahlstrom@biolinscientific.com

COMPANY INFORMATION
Biolin Scientific AB (publ)
Hängpilsgatan 7
SE-426 77 Västra Frölunda
Sweden
Telephone: +46 31 769 7690
Fax: +46 31 69 80 40
E-mail: info@biolinscientific.com
Company number: 556249-4293
www.biolinscientific.com