LinkMed third quarter net sales decrease to SEK 19.1 million

-- LinkMed (STO:LMED) decided to change the strategic focus of its operations, putting further focus on the transplantation sector, while intensifying and accelerating efforts to harvest the value of its associated companies. The change in strategy resulted in restructuring costs of SEK 6.3 million, charged to earnings in the third quarter. The restructuring carried out so far will result in an annual decrease in costs of SEK 7 million.

-- Net sales for the period amounted to SEK 60.6 million (64.1). Currency effects had a negative impact on sales of SEK 7 million.

-- Net sales for the third quarter amounted to SEK 19.1 million (21.1). The lower sales figure is to a large part due to exchange rate effects. Furthermore, comparative figures for 2009 include a sales peak in Olerup SSP due to inventory build-up in the U.S. company, Olerup Inc.

-- Operating loss (EBIT) for the period was SEK 4.1 million (18.2). In addition to one-off costs and currency effects, the results are impacted by the cost of establishing Olerup Inc. Neither AbSorber nor Olerup Inc was part of the group in the corresponding period last year.

-- Net loss after tax was SEK 8.4 million (10.8).

-- Loss per share, basic and diluted was SEK 0.33 (0.75).

-- Equity per share was SEK 33.54 (38.77).

-- The equity/assets ratio was 68 (80) percent.

KEY EVENTS IN THE THIRD QUARTER

-- In August, AbSorber filed an application with the FDA for clearance of a new innovative version of XM-ONE®.

-- BioResonator received CE approval and several new orders in conjunction with new distribution agreement.

KEY EVENTS AFTER THE PERIOD END

-- LinkMed changes classification on NASDAQ OMX to Life Sciences Tools & Services.

-- LinkMed implements organizational change in conjunction with the new strategy.

-- The PatLog® patient logistics system from ONCOlog Medical will be a part of a proton therapy facility that the Belgian company IBA is providing to a new center in Dimitrovgrad, Russia.

CEO Ingemar Lagerlöf's commentary on the third quarter 2010:

"LinkMed commenced implementation of sweeping changes to our operations during the quarter in conjunction with the decision to further focus our efforts on the transplantation business. As a result of the new strategic direction, we are now working to accelerate exits from associated companies. The changes also impact the parent company organization in the form of cutbacks, which led to one-off costs in the quarter. Going forward, costs in the LinkMed parent company will be significantly reduced. Olerup SSP sales continue to increase in volume, but the currency effect worked against us this quarter again. Our endeavors in the U.S. are beginning to show results with solid sales growth, and we expect even stronger growth ahead".

Source:

LinkMed

Comments

The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News Medical.