Sectra shines on strong Q4 profit even as cloud transition weighs

SECTRA AB

02/06/2023 09:07

** Shares in Sectra  SECTb.ST  rise more than 5% after the
Swedish technology company reported strong Q4 profit supported
by growth in all operating areas
    ** Stifel analyst David Vignon says Sectra showed good
performance across the board, with quarterly EBIT "much better"
than his estimates and revenue in line
    ** Sectra's Q4 operating profit rose 39.5% to SEK 196.8
million ($19.38 million)
    ** Vignon says growth was "not incredible" in imagining IT,
which constitutes 88% of group sales, noting this was dampened
by long-term cloud transition plans
    ** Sectra is transitioning towards higher share of recurring
revenue with consumption-based pricing and cloud offering, which
Vignon says is the right thing for the company in the long term
    ** Sectra's Secure Communications division posted 23% sales
growth as the geopolitical situation in Europe boosted demand
for its products
    ** Sectra also raised its dividend to SEK 1.10 per share
from SEK 1.00 last year
    ** The stock is among top performers on Europe's STOXX 600
 .STOXX  index

($1 = 10.1526 Swedish crowns)

 (Reporting by Agata Rybska)
 ((Agata.rybska@thomsonreuters.com))