HMS Networks AB: Yearend report 2010
Comment from the CEO
During 2010 net sales reached a new record level for HMS. Net sales amounted to SEK 345 m which is 41% more than 2009, but more important almost 9% more than the previous record year 2008. The strong recovery during the first half of 2010 has leveled out with a sales increase for the last quarter of 27%. The strengthening of the Swedish currency in relation to the most important currencies for HMS affected sales negatively with SEK 26 m compared to the previous year. The strengthened Swedish currency also had a somewhat negative effect on the gross margin during the later part of the year. The inflow of new design wins related to Embedded products continued as expected, resulting in 913 (814) design wins at the end of the year. In all we have added 200 design wins in the area of Embedded products during the last two years. These new design wins build up an important foundation for our future growth in the area of Embedded products.
On the important geographical markets Germany continues its good development, we have noticed a recovery on the US market while the Japanese market is still difficult to predict. During the fourth quarter HMS carried out a lot of customer activities and participated in several trade shows. We are happy to conclude that the interest for HMS, our brand names Anybus® and Netbiter® together with our product launches of new products are on record levels.
As a part of our long term strategy we have strengthened the development-, marketing- and international sales departments. To accomplish this we have employed 25 new people during the year taking us to a total number of 190 employees. During 2011 we will continue to work in line with our strategy to achieve a long term profitable growth. This means that we will continue to recruit new people mainly in the area of sales and development. We will launch new products in order to offer a broader product range and we continue to establish new sales channels and to strengthen the HMS position as the preferred supplier of industrial communication solutions.
After the year end HMS acquired the remaining minority shareholding of Intellicom Innovation AB. We see a great opportunity with Intellicom and their Netbiter concept which together with the HMS’ technology for industrial communication takes us a step closer to providing solutions to our customers communication needs. Netbiter makes remote control and remote management of devices and machines possible creating cost savings and improved productivity for our customers.
Halmstad February 2, 2011
Staffan Dahlström
Chief Executive Officer
This yearend report has not been reviewed by the Company's auditor
Further information can be obtained from:
CEO Staffan Dahlström, on telephone +46 (0) 35-17 29 01 or
CFO Gunnar Högberg, on telephone +46 (0) 35-17 29 95
HMS Networks is a world-leading supplier of communication technology for industrial automation. Sales totaled SEK 345 in 2010. Over 90% of these sales were to customers located outside Sweden. All product development and parts of the manufacturing are performed at the head office in Halmstad. Sales offices are located in Tokyo, Beijing, Karlsruhe, Chicago, Milan and Mulhouse. HMS has 190 employees and produces network interface cards and products to interconnect different networks under the trademark Anybus®. The network interface cards are embedded in automation equipment such as robots, control systems, motors and sensors. This allows subcomponents in machines to communicate with one another and with different networks in order to build more efficient and flexible manufacturing systems. HMS is listed on NASDAQ-OMX Nordic Exchange in Stockholm in the category Small Cap, Information Technology.