First nine months
* Net sales for the first nine months increased with 15 % reaching SEK 433 m
(375), corresponding to a 11 % increase in local currencies
* Operating profit reached SEK 80 m (73), equal to a 18 % (20) operating
margin
* Order intake for the first nine months increased to SEK 448 m (384)
corresponding to a 13 % increase
* Cash flow from operating activities amounted to SEK 67 m (65)
* Profit after taxes totaled SEK 54 m (53) and result per share amounted to
SEK 4.76 (4.70)
* Net sales for the last twelve months amounted to SEK 559 m (463)
corresponding to a 17 % increase in local currencies. Operating result
amounted to SEK 93 m (79) corresponding to a 17 % (17) operating margin
Third quarter
* Net sales for the third quarter reached SEK 152 m (140) corresponding to a
9 % increase. Operating result reached SEK 37 m (32)
* Order intake for the third quarter was SEK 148 m (125)
Comments from the CEO
During the third quarter, HMS could present new record levels for net sales and
operating result despite an increased precaution and hesitance in our market
during recent months. Our Anybus products continue to perform well and sales are
at a steady level. The IXXAT operations, acquired in the beginning of 2013,
grows and develops well while our solution's for Remote Management under the
brand name Netbiter is not gaining the expected momentum although the product
continues to generate interest from the market.
The strong development on the Japanese market continues. The important German
market had a solid development during the first nine months although we see
indications of a weaker development going forward. Our sales on the US market
shows a slightly positive development.
Increasing sales volumes and a retained strong gross margin enable us to show a
higher gross profit compared to the previous year. Despite increasing operating
expenses, mainly due to a lower level of capitalized development expenses
compared to 2013, we can present an improved operating result for the first nine
months and for the third quarter.
After closing the third quarter, HMS acquired a product line for wireless
communication from the Swiss company u-blox AG. This acquisition was an asset
deal and HMS takes over product rights, Intellectual Property and existing
customer base for these products. In 2013, this product line generated an annual
turnover of approximately SEK 9 m. These products will be offered to the market
under our Anybus brand. We see wireless communication as an important area for
industrial applications going forward. Gaining acceptance for wireless
communication within industrial applications is a long process but we can see
progress in this field, primarily in the areas of diagnostics and monitoring. We
can also see a major potential in the area of connecting existing equipment
-retrofitting - in areas without existing infrastructure for communication. The
increasing demand to connect more and more devices, driven by trends like
"Internet of things" and "industry 4.0," will increase the need for wireless
connectivity and this product line will represent a foundation in our future
investment in the area of wireless communication.
We assume a cautious approach to the market development and we consider the
conditions for a long-term growth as positive.
Our focus remains to grow our three product brands Anybus, Netbiter and IXXAT.
We continue to balance our long-term growth strategy with a restrictive approach
to expenses and new resources. In the long term, we consider the market for
industrial data communication and remote monitoring to be interesting growth
areas and we continue to focus on our motto "Connecting devices".
Halmstad, October 28, 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
This information is such that HMS Networks AB (publ) is required to disclose in
accordance with the Swedish Financial Instruments Trading Act and/or the Swedish
Securities Market Act. The information was submitted for publication at 07.50
CET on October 28, 2014.
HMS Networks AB (publ) is a world-leading supplier of communication technology
for industrial automation. Sales amounted to SEK 501 million in 2013. Over 90%
of these sales were to customers located outside Sweden. All development and the
major portion of manufacturing are carried out at the head office in Halmstad
and in Weingarten. Sales offices are located in Japan, China, Germany, Denmark,
India, UK, USA, Italy and France. HMS has 350 employees and produces network
interface cards and products to interconnect different networks under the
trademark Anybus® and IXXAT® and products for Remote Management under the
trademark Netbiter®. HMS is listed on NASDAQ-OMX Nordic Exchange in Stockholm in
the category Small Cap, Information Technology.
[HUG#1866183]
