First six months
* Net sales for the first six months increased with 19 % reaching SEK 281 m
(235), corresponding to a 16 % increase in local currencies
* Operating profit reached SEK 42 m (41), equal to a 15 % (17) operating
margin
* Order intake for the first half year increased with 31 % to SEK 338 m (259)
corresponding to a 27 % increase in local currencies
* Cash flow from operating activities amounted to SEK 38 m (33)
* Profit after taxes totaled SEK 28 m (30) and result per share amounted to
SEK 2.49 (2.63)
* Net sales for the last twelve months amounted to SEK 546 m (422)
corresponding to a 30 % increase. Operating result amounted to SEK 88 m (70)
corresponding to a 16 % (17) operating margin
Second quarter
* Net sales for the second quarter reached SEK 141 m (128) corresponding to a
10 % increase. Operating result reached SEK 21 m (27) corresponding to an
operating margin of 15 % (21)
* Order intake for the second quarter was SEK 170 m (140)
Comments from the CEO
We could see an improved stability during the second quarter primarily on our
important German market but also in
Japan and to some extent in North America. With an 10 % organic growth this
resulted in a new record level in sales, SEK 141 m.
During the first six months we have finalized several major Netbiter and Anybus
development projects and we are now in an intense phase of product
introductions. For our Anybus Embedded offer the Anybus-CBM product family is
now shipping for the five most important network protocols. A new updated
version of the Anybus X-gateway has been launched and we have also released a
new and improved 3.0 version of the IXXAT CanAnalyzer software. The new Remote
Access functionality for Netbiter is being well received on the market and
during the second quarter a number of pilot installations were made with
positive results. We still see delays in the ramp up of Netbiter sales in the
Telecom segment, mainly due to long sales and qualification processes.
The completion of several major development projects in Halmstad means that we
now are reallocating resources to customer projects based on our newly developed
technology, something that will provide both financing for parts of the
development work and future product sales. With a maintained strong gross margin
during the first half year we can report a higher gross profit compared to the
previous year. Increased operating expenses mainly due to a decreasing level of
capitalization of development expenses means that the result is unchanged for
the first six months and lower for the second quarter compared to the respective
periods the previous year.
IXXAT Automation GmbH, which was acquired in February 2013, developed well
during the first six months of 2014. Today the major part of the IXXAT product
offer is shipped through the HMS sales channels and we can see increasing
activities and cross selling of the IXXAT products. Simultaneously we continue
to invest in the product development in Weingarten, Germany to develop the
product- and service offering for our IXXAT brand within Machine Communication,
Automotive and Safety.
We are cautiously positive to the market development and we are optimistic about
the conditions for a long term growth. A good order intake indicates a
continuing growth going forward.
Our focus remains to develop growth within our three product trademarks Anybus,
Netbiter and IXXAT. We continue to balance our long term growth strategy with a
restrictive view on expenses and new resources. Long term we consider the market
for industrial data communication and remote monitoring to be interesting growth
areas and we continue to focus around our motto "HMS-connecting devices".
Halmstad April 15, 2014
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 Industrial Networks is the leading independent supplier of products for
industrial communication including remote management. HMS develops and
manufactures solutions for connecting automation devices and systems to
industrial networks under the Netbiter, Anybus and IXXAT brands. Development and
manufacturing take place at the headquarters in Halmstad, Sweden and in
Weingarten, Germany. Local sales and support are handled by branch offices in
China, Denmark, France, Germany, India, Italy, Japan, UK, and USA. HMS employs
over 350 people and reported sales of 58 million EUR in 2013. HMS is listed on
the NASDAQ OMX in Stockholm.
[HUG#1826451]
