Vitrolife second quarter sales increase 19% to SEK 88 million

Vitrolife (STO:VITR):

Second quarter in brief

• Sales growth increased by 31 percent in local currency in the second quarter. Sales amounted to SEK 88 (73) million, corresponding to an increase by 19 percent in SEK.
• Operating income (EBIT) amounted to SEK 13 (9) million, which corresponds to an increase by 45 percent. The operating margin amounted to 14 (12) percent. Operating expenses as a percentage of sales decreased to 51 (59) percent. Operating income before research and development costs amounted to SEK 24 (20) million, which corresponds to an operating margin of 28 (27) percent.
• Income before tax increased by 51 percent to SEK 15 (10) million. Net income amounted to SEK 10 (9) million; estimated tax of SEK 5 (0) million is included. Payment of tax will be made no earlier than in connection with Q1 2012. Earnings per share amounted to SEK 0.51 (0.48).
• The cash flow from operating activities was SEK 11 (13) million. The change compared with the previous year is attributable primarily to the increase in accounts receivable and raw material inventories as a result of strongly increasing sales and increased growth for the company as a whole.
• Dividend of SEK 0.60 (0.50) per share, in total SEK 11,735,914 (9,776,429).
• The total number of shares in Vitrolife AB (publ) was increased during the quarter by 2,912 shares and amounts to 19,562,769 shares. The increase in the number of shares is due to the utilization of warrants for subscription for new shares in connection with Vitrolife's personnel warrants program 2008/2011, which came to an end on May 31, 2011. A total of 9.912 shares were subscribed for by utilizing the warrants program.
• Vitrolife is the first company to receive regulatory approval in China for a whole series of cultivation media for IVF.
• Study shows that EmbryoGlue®, a product patented by Vitrolife, increases the chances of the infertile having children.
• Launch of new freeze medium for human embryonic stem cells.
• Clinical study with good results using STEEN Solution™ published in a prominent scientific journal. A total of more than 90 patients have now received new lungs through the use of STEEN Solution™.
• Further European hospitals, amongst other things in Sweden, Italy and Germany, report on their first clinical transplantations using STEEN Solution™.

First six months in brief

• Sales increased by 29 percent in local currency during the first half of 2011. Sales amounted to SEK 176 (149) million, corresponding to an increase by 18 percent in SEK.
• Operating income (EBIT) amounted to SEK 23 (19) million, which corresponds to an increase by 22 percent. The operating margin amounted to 13 (13) percent. Operating expenses as a percentage of sales decreased to 53 (57) percent. Operating income before research and development costs amounted to SEK 46 (41) million, which corresponds to an operating margin of 26 (28) percent.
• Income before tax increased by 33 percent and amounted to SEK 27 (20) million. Net income amounted to SEK 19 (19) million; estimated tax of SEK 8 (1) million is included. Payment of tax will be made no earlier than in connection with Q1 2012. Earnings per share amounted to SEK 0.97 (0.98).