DGAP-News: STRATEC Biomedical AG / Key word(s): Quarterly / Interim Statement/Quarter Results
STRATEC reports on first nine months of 2016
STRATEC Biomedical AG, Birkenfeld, Germany (Frankfurt: SBS; Prime Standard, TecDAX) today announced its financial results for the period from January 1, 2016 through to September 30, 2016 with the publication of its Quarterly Statement 9M|2016.
The Group generated adjusted EBIT of EUR 18.4 million. The adjustment includes expenses for the two acquisitions made in 2016 and the integration of the companies involved. To enhance efficiency, this integration also involved merging the activities of three operating units in the US at two locations on the East Coast. The EBIT margin was adjusted to exclude the associated one-off expenses and came to 14.6% at the end of the first nine months.
The temporary reduction in the margin is mainly due to lower profitability at the new subsidiaries and to the hiring of new staff in connection with numerous product developments.
The positive impact these product development measures are expected to have in the medium term is currently being impeded. This is because the delays in product approvals already mentioned have held back growth momentum, leading to a temporary delay in the materialization of the resultant benefits of scale.
The backlog of investments in the infrastructure of the new subsidiaries will be rapidly remedied through targeted capital expenditures.
The bridge financing taken up in the context of the acquisitions is planned to be exchanged for long-term follow-up financing as the fourth quarter progresses.
Of the total workforce as of September 30, 2016, 364 employees were attributable to the two new companies. In the previous year, these companies had a total of 332 employees. Taking into account the 573 employees at STRATEC in Q3 2015, and factoring in the 332 employees from the two new companies, workforce grew by 8.3% over the twelve month period. Excluding acquisitions, the number of employees at the STRATEC Group rose by 7.6%, an increase driven in particular by the build-up of additional development capacities at the Birkenfeld location.
To deal with the large number of development projects, STRATEC remains on the lookout for well-qualified personnel and expects to report rising employee totals in the quarters ahead as well.
Hologic, one of STRATEC's largest customers, has reported that the market launch of its "Panther Fusion" in Europe will take place in 2017. The US market launch of this system is scheduled for 2018. The "Fusion" system represents a further expansion to the established "Panther" line. Furthermore, Hologic has also reported on increased "Panther" placement volumes in connection with its Zika virus detection test.
Consistent with the agreed project planning, the development work on an immunoassay system for small and medium-sized laboratories is progressing very successfully. Initial milestones have been reached and the partner aims to launch the system onto the market in 2018.
Alongside these projects, our partners are also preparing several market launches scheduled for the coming quarters.
Development work on proprietary platforms is also progressing successfully. In cooperation with various partners, initial diagnostics tests are already being tried out and applications are being tested for a wide variety of fields. Initial sales with these platform-based systems are expected during the second half of 2017, while the first market launch with a partner is expected to take place in the first half of 2018.
STRATEC is continuing to focus on achieving key development milestones and market launches.
The EBIT margin is expected to develop positively upon the materialization of benefits of scale resulting from growth in the traditional business and at acquired units.
The partners market the systems, software and consumables in general together with their own reagents, as system solutions to laboratories, blood banks and research institutes around the world. STRATEC develops its products on the basis of its own patented technologies.
Shares in the company (ISIN: DE000STRA555) are traded in the Prime Standard segment of the Frankfurt Stock Exchange and are listed in the TecDAX select index of the German Stock Exchange.
Document title: STRATEC Quarterly Statement 9M|2016
|Company:||STRATEC Biomedical AG|
|Phone:||+49 (0)7082 7916 0|
|Fax:||+49 (0)7082 7916 999|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|