Report on operations 2007

Q4: Sales growth for Fertility 20 percent in local currencies

• Sales increased by 14 percent to SEK 47.5 (41.8) million during the fourth quarter. However, the underlying sales growth was 17 percent, corrected for negative currency effects. Net sales amounted to SEK 188.9 (171.3) million for the whole of 2007, an increase of 10 percent. Calculated in local sales currencies growth was 13 percent.

• Sales growth of 20 percent in local currencies within the Fertility area during the fourth quarter.

• Gross income increased by 11 percent to SEK 32.1 (28.9) million for the fourth quarter, and the gross margin was 68 percent (69). Gross income for the quarter has been affected by extra expenses in connection with the launch of a new series of products. Gross income for the whole of 2007 increased by 11 percent to SEK 129.7 (116.5) million and the gross margin improved to 69 (68) percent.

• Operating income for the fourth quarter amounted to SEK 3.2 (3.9) million, corresponding to an operating margin of 7 (9) percent. A provision of SEK 1 million has been made for uncertainty regarding import tariff coding, for the whole of 2007.
Operating income for the whole of 2007 increased by 5 percent and amounted to SEK 21.0 (20.0) million, which gives an operating margin of 11 (12) percent.

• Operating income for the fourth quarter before research and development costs amounted to SEK 10.4 (10.0) million, corresponding to a margin of 22 (24) percent. For the whole of 2007 operating income before research and development costs increased by 8 percent to SEK 47.9 (44.2) million. This corresponds to a margin of 25 (26) percent.

• Continued strong focus on research and development activities, 15.3 (14.6) percent of sales for the fourth quarter, 14.2 (14.1) percent for the whole of 2007.

• Consolidated net income increased to SEK 7.9 (2.1) million for the fourth quarter, SEK 36.1 (15.2) million in total for 2007. Capitalization of the deferred tax asset in loss carry-forward for tax purposes has been carried out to the tune of SEK 4.1 (-) million for the fourth quarter, SEK 16.4 (-) million in total for the year.

• The cash flow from operating activities amounted to SEK 3.3 (5.4) million for the fourth quarter, SEK 21.3 (23.8) million for the whole of 2007.

• Earnings per share increased to SEK 0.40 (0.11) for the fourth quarter. For the whole of 2007 earnings per share increased to SEK 1.82 (0.77).

• The equity/assets ratio amounted to 85 percent (81).

• Products for cold storage of embryos approved in Canada.

• Acquisition of majority shareholding in Italian distributor after the end of the period.

• Start of direct marketing of all fertility products in France announced after the end of the period.


February 7, 2008
Kungsbacka, Sweden

The Board


Queries should be addressed to:
Magnus Nilsson, CEO, phone +46 31 721 80 00 or +46 708 22 80 61.
Anna Ahlberg, CFO, phone +46 31 721 80 13 or +46 708 22 80 13.

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