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Second quarter April – June 2013

Second quarter April – June 2013

  • Net sales totaled SEK 71.3 million (71.0), up 0.4 percent. Changes in the USD and EUR exchange rates had a negative impact of SEK 1.1 million on net sales.
  • Operating profit totaled SEK 5.6 million (8.3).
  • Profit after tax was SEK 5.9 million (4.7).
  • Earnings per share amounted to SEK 1.25 (0.99).

Interim period January – June 2013

  • Net sales totaled SEK 134.7 million (135.2), down 0.4 percent. Changes in the USD and EUR exchange rates had a negative impact of SEK 3.1 million on net sales.
  • Operating profit totaled SEK 6.1 million (12.8).
  • Profit after tax was SEK 4.2 million (6.8).
  • Earnings per share amounted to SEK 0.90 (1.44).

Key events during the second quarter                   

Agreement with Karolinska University Laboratory
During the second quarter, Boule signed an agreement with Karolinska University Laboratory, Clinical Chemistry (KUL), for collaboration on system validation and product development in hematology. KUL has extensive knowledge of hematological blood analysis and makes a very attractive partner for Boule. The agreement with KUL means that Boule will own all rights to the data generated by the project.

Agreements with OEM customers
Initiatives within the OEM business resulted in two new agreements during the second quarter. The agreements are with two major, global, diagnostic companies. Boule recognizes potential for a substantial increase in OEM business over the coming years.

Comments from the CEO
In our largest market, North America, sales of veterinary systems recorded continued favorable growth while sales of human systems were weaker than expected. The underlying reasons for weaker sales of human systems included the consolidation of the major distributors in our market segment and certain caution shown on the purchasing side attributable to the economic situation. Whether this cautious approach will be sustained is difficult to assess. The US economy seems to be strengthening, which could positively impact our market. In parallel, I would like to reiterate that we continuously see substantial variations in our customers’ buying behavior, which makes comparisons between individual quarters misleading.

Our increased investment in a local presence in the Middle East and Latin America, with sales offices in Dubai and Mexico, has started positively. In both of these markets, large procurements account for the predominant share of the market, which means that a local presence is crucial to be able to submit competitive tenders effectively. We hope the investment will generate positive results in 2014 – or, ideally, at the end of the current year.

Sales in Western Europe were also characterized by weaker demand due to sluggish economic conditions while, in parallel, Eastern Europe remained one of Boule’s key markets and reported continued growth with no signs of slowing down.

We have previously announced the revised launch plan for the Point-Of-Care (POC) system. As yet, we have not achieved our required level of robustness and, accordingly, will return later with a more detailed schedule. In parallel, our initiatives in the OEM business resulted in new agreements with two major, global diagnostic companies and we recognize potential for a substantial increase in sales over the coming years.

Finally, during the second quarter of 2013, Boule signed an agreement with Karolinska University Laboratory, Clinical Chemistry (KUL), for collaboration on system validation and product development in hematology. There is a constant need to challenge our systems with special patient samples to ensure that the systems identify them and that performance matches the needs further up the care chain. KUL has extensive knowledge of hematological blood analysis and makes a very attractive partner. Under the agreement with KUL, Boule will own all rights to the data generated by the project.

To summarize, the first six months opened somewhat weaker than expected, but we remain convinced that the ongoing investments in our core business will continue to drive growth and contribute to the achievement of Boule’s long-term growth and profitability targets.

Ernst Westman, President and CEO, Boule Diagnostics AB

For further information, please contact: 
Ernst Westman 
President and CEO 
+46-8-744 77 00 
ernst.westman@boule.se 

The information in this interim report is such that Boule Diagnostics AB (publ) is obligated to publish under the Swedish Securities Market Act. The information was submitted for publication on August 21, 2013 at 8:00 a.m. (CET).