First six months
Net sales for the first six months increased with 21 % reaching SEK 235 m (195), corresponding to a 27 % increase in local currencies
Operating profit reached SEK 41 m (34), equal to a 17 % (18) operating margin
Order intake for the first half year increased with 13 % to SEK 259 m (229) corresponding to a 19 % increase in local currencies
Cash flow from operating activities amounted to SEK 67 m (38)
Profit after taxes totaled SEK 30 m (26) and result per share amounted to SEK 2.63 (2.29)
Net sales for the last twelve months amounted to SEK 422 m (391) corresponding to a 14 % increase in local currencies. Operating result amounted to SEK 70 m (69) corresponding to a 17 % (18) operating margin
Second quarter
Net sales for the second quarter reached SEK 128 m (99) corresponding to a 29 % increase Operating result reached SEK 27 m (20) corresponding to a operating margin of 21 % (20)
Order intake during the second quarter was SEK 140 m (113)
Comments from the CEO
During the second quarter we saw order intake, revenues, operating result and earnings per share on levels not seen before in the Group. The acquisition of IXXAT Automation GmbH earlier this year contributes to these improvements but we can also see tendencies of improved demands.
Japan shows growth due to our Japanese customer's competitive advantage from a weak Japanese currency. Germany shows sign of some growth. The expected positive development in the US has not materialized and we can see a cautious approach.
We see continuing progress with new and existing customers and the order intake during the period indicates future growth.
Our new product platform in the Embedded product group is attracting considerable interest and already starting to generate design wins. We are expecting a positive development in volumes from this platform during 2014 and going forward. The core technology of this product offer, our new NP40 processor was recently awarded the "2013 New Product Innovation Award" by Frost & Sullivan providing good attention for our new product offer in the embedded area.
The product- and market development within Remote Management continues. We have experienced longer sales cycles than expected and despite many pilot series with interesting customers the sales volumes from the Remote Management products are delayed.
The development of IXXAT Automation that was acquired earlier this year is not in line with expectations but we see good opportunities for future synergies in the areas of sales and product development. During the second quarter the coordination of the sales and marketing organizations continued and we now have established common sales organizations in North America and Central Europe for our three brand names Anybus, IXXAT and Netbiter.
We can conclude that we see a mixed picture going forward. On the one hand we had a positive second quarter with good levels of order intake, sales, operating profit and earnings per share. On the other hand the market is difficult to predict in the near future. We continue to balance our long-term growth strategy with a restrictive view on costs. In the long term, we see the markets for industrial communication and remote management to be growth sectors.
Halmstad July 22, 2013
Staffan Dahlström
Chief Executive Officer
HMS Q2 Report 2013 (English)