January - December 2012
* Net sales for the full year reached SEK 382 m (384), corresponding to a 1 %
decrease. The revaluation of the Swedish currency had a minor impact on net
sales
* Operating profit reached SEK 64 m (72), equal to a 17 % (19) operating
margin
* Order intake for the year increased to SEK 424 m (388), corresponding to a
10 % increase in local currencies
* Cash flow from operating activities amounted to SEK 82 m (46)
* Profit after taxes totalled SEK 52 m (54) and result per share amounted to
SEK 4.64 (4.84)
* The Board of Directors propose a dividend to the amount of SEK 2.25 (2.25)
* Net sales and operating result corresponds to levels indicated in the press
release issued on January 17, 2013
Fourth quarter
* Net sales for the fourth quarter reached SEK 87 m (95) corresponding to a 8
% decrease and operating result reached SEK 6 m (10)
* Order intake during the fourth quarter was SEK 100 m (83)
Subsequent events
* HMS acquires German IXXAT GmbH, a leading supplier of communication
technology
Comments from the CEO
The fourth quarter saw a decreased amount of delivered products which resulted
in zero growth during 2012 and a 17 % operating margin - far below our
expectations. In spite of the weak short-term market we see an inflow of new
design-wins and customer orders which allow us to continue according to our
long-term strategy, but with a persisting cost-awareness. The development of new
technology platforms within Safety and our new Embedded platform continue
according to plan.
During the quarter, we have seen a very diversified market with a fairly
positive development in North America, while the European market has slowed
down. All in all, we meet a cautious market with uncertain conditions and we
expect our customers to have a conservative approach until the market conditions
stabilize.
Our new generation of Anybus CompactCom (in Chip, Brick and Module format) has
been received positively by the market and in 2013, we will focus on securing
design-wins for this new product platform.
In the beginning of 2013, HMS acquired German IXXAT GmbH, with a turnover of EUR
14 m and 85 employees. IXXAT's hi-tech products and services are great
supplements to HMS's operations. Their strong position on the important German
market will reinforce HMS's presence on the world's leading market for
industrial communication solutions.
IXXAT is world-leading when it comes to CAN-based communication technology and
they operate within business segments which will be important for HMS's future
business. We also see great opportunities for synergies when it comes to
development of new technology platforms, manufacturing and logistics.
Through this acquisition, HMS employs 350 employees and has a turnover of SEK
500 m. We have become more powerful and we have further established our world-
leading position within industrial communication.
We will continue to focus on growth for our three brands Anybus, Netbiter and
IXXAT. Our market is still uncertain in the short term, which makes it important
to continually balance our long-term strategy for growth with a cautious
approach when it comes to costs. In the long run, we expect the market for
industrial communication and remote management to grow.
Halmstad February 7, 2013
Staffan Dahlström
Chief Executive Officer
Further information can be obtained from: CEO Staffan Dahlström, telephone +46
(0) 35-17 29 01 or CFO Gunnar Högberg, telephone +46 (0) 35-17 29 95. See also:
http://investors.hms.se
HMS Networks (publ) is a world-leading supplier of communication technology for
industrial automation. Sales for 2012 totaled SEK 382 million. 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, Mulhouse,
Pune, Coventry and Copenhagen. HMS has 250 employees and produces network
interface cards and Gateways to interconnect different networks under the
trademark Anybus® and products for remote management under the trademark
Netbiter®. HMS is listed on the Nasdaq OMX Stocholm Small Cap list, in the
Information Technology sector.
[HUG#1676169]
