HMS Q3 Report 2012

First nine months

Net sales for the first nine months increased with 2 % reaching SEK 295 m (289), corresponding to a 1 % increase in local currencies

Operating profit reached SEK 57 m (62), equal to a 20 % (22) operating margin

Order intake for the first nine months increased with 6 % to SEK 325 m (305) corresponding to a 6 % increase in local currencies

Cash flow from operating activities amounted to SEK 63 m (41)

Profit after taxes totaled SEK 42 m (46) and result per share amounted to SEK 3.78 (4.13)

Net sales for the last twelve months amounted to SEK 389 m (80) corresponding to a 2 % increase in local currencies. Operating result amounted to SEK 67 m (82) corresponding to a 17% (22) operating margin

Third quarter

Net sales for the third quarter reached SEK 99 m (101) corresponding to a 2 % decrease and operating result reached SEK 23 m (24)

Order intake during the third quarter was SEK 95 m (108)

Comments from the CEO
During the period we could see a mixed picture of the HMS markets with a relatively good North American market continuing its positive development to new record levels. We noticed a slow down on the European market during the period. The Japanese market is still irregular. Together the market is still cautious with uncertain conditions and we expect our customers will remain cautious until market conditions are more stable. Due to this situation and the strength of the Swedish currency HMS is now in a period of weaker growth.

HMS shows stability in reported figures and its financial position. With a focus on cost control we can now report at operating margin at 20 %, which is in line with our long term goal for profitability. This in combination with a continued in flow of design-wins means that we will continue with our long term strategic plan. The development of new technical platforms in the area of Safety and our new embedded platform continues according to plan. 

During the period HMS signed an important blanket agreement within Telecom applications for our Remote Management solution. This product is now close to a market break through and we expect to see exciting market opportunities in this area in the future.

Our market is still difficult to predict in the near future, which means that we will continue to balance our long term growth strategy with a cautious approach to our expansion of costs.