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Boule Diagnostics AB (publ) Interim report January – March 2018

Continued improvements of profitability in spite of slower sales at the start of the year 

Quarter January–March 2018

  •  Net sales amounted to SEK 99.5 million (106.6), down 6.7 percent. Adjusted for the change in exchange rates, this corresponds to a decrease of 2.3 percent.
  •  Number of instruments sold in the quarter was 940 (1,143), a decrease of 18 percent.
  •  Cash flow from operating activities amounted to SEK 6.3 million (18.5).
  •  Operating profit was SEK 18.8 million (12.0) which corresponds to an operating margin of 18.9 percent (11.2).
  •  Net profit amounted to SEK 14.9 million (8.7).
  •  Earnings per share before dilution amounted to SEK 3.08 (1.84) and after dilution to SEK 3.08 (1.79).

Significant events during the quarter

Strengthened Executive Team

Kiarash Farr has been appointed SVP of Commercial Operations. He succeeds Claes Blanche who has communicated that he wants to phase out of his current role and take a part time consultant role for Boule. Kiarash Farr will assume the position as of March 1, 2018.

The executive team will be strengthened by two new members who represent Human Resources and US Sales & Marketing respectively.

Significant events after the quarter

Boule acquires technologies for the next generation product platform

In April, Boule acquired new technologies in the field of laser optics that will be adapted to Boule’s requirements and be used in combination with internally developed technologies for the next generation product platform. The acquisition will reduce time to market for the next product launch in the fast growing 5-part segment, and simultaneously reduce development cost and risk. The seller is Drew Scientific, Inc. The purchase price is USD 3 million, out of which USD 750,000 will be paid upon completion of the technology transfer, expected to occur early in the third quarter

Comments from CEO Fredrik Dalborg

”After a solid finish to 2017, sales started off a bit slow in the beginning of 2018. January and February were weaker when compared to 2017, months that included won procurements in Africa and Middle East. Sales also decreased in Western Europe as customers were waiting for the release of the new veterinary hematology system H400, and in India due the transition process in the distributor structure. In March, sales significantly improved, but not enough to show growth compared to the strong first quarter of 2017, when growth was 26%. The growth of individual quarters is significantly affected by tenders. In the first quarter of 2018 no major tenders were completed, and revenues amounted to SEK 99.5 million (106.6).

In April, Boule signed an agreement to acquire technologies that will be used for the next generation platform development for the 5-part market segment. Through this acquisition Boule will get access and rights to new technologies in the field of laser optics and sensors. The laser optics technologies enable deeper analysis of different sub sets of white cells, allowing for 5-part differentiation of the cells. The acquired laser optics technology has been thoroughly reviewed by the Boule R&D team and will be adapted to Boule’s requirements and used in combination with internally developed technologies for the next generation platform. The acquisition will reduce time to market for the next

product launch in the fast growing 5-part segment, and simultaneously reduce development cost and risk.

In April, the new veterinary hematology system H400 was released for sale. Boule’s customers have been waiting for this product release, and therefore we saw a slowdown in sales for the previous model in the first quarter 2018. The new instrument’s order book is strong, and the first units were installed at customer sites in April. This product release will be accompanied by the release of the new veterinary chemistry system C200. The two systems have integrated software and will be used in combination by the customers, strengthening Boule’s portfolio in the veterinary market.  

Growth and improvement initiatives will continue, and in the second half of 2018 the launch of the new CellaVision product platform is planned. The new platform enables digital cell analysis in small and medium-sized laboratories and will complement Boules product portfolio. In addition, the team will be working on additional growth initiatives in line with the established strategy.”

THE INTERIM REPORT FOR JANUARY-MARCH 2018 IN ITS ENTERITY IS FOUND BELOW.

For further information, please contact:
Fredrik Dalborg, CEO and Group President, Boule Diagnostics AB, phone +46 705-58 51 05
Christina Rubenhag, CFO, Boule Diagnostics AB, phone +46 705-46 72 22

About Boule Diagnostics AB (publ)
Boule Diagnostics AB is a global diagnostics company that develops, manufactures and markets instruments and consumable products for blood diagnostics. The company serves hospitals, clinics, laboratories and companies within blood diagnostics, in both human and veterinary hematology. The company operates via subsidiaries in Sweden, the USA and Mexico. The company products are sold globally primarily through distributors, supported by Boule’s own local sales and support personnel. The Boule shares are listed on Nasdaq Stockholm since 2011. www.boule.com 

This information is information that Boule Diagnostics AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 15.00 CET on May 14, 2018.