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Micro Systemation
Quarterly Report • Apr 27, 2023
3176_10-q_2023-04-27_a5430027-a34e-4f66-8fbc-731c4e28c893.pdf
Quarterly Report
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Interim report Q1 2023
Interim report Q1 2023 January - March 2023
Summary January - March 2023
- Net sales amounted to SEK 87.4 (75.6) million, an increase of 15.6 percent compared to the corresponding period last year. Currency-adjusted growth amounted to 11.0 percent.
- EBIT amounted to SEK 8.2 (-0.2) million, corresponding to an EBIT margin of 9.3 (-0.3) percent.
- Profit after tax amounted to SEK 6.7 (1.4) million.
Significant events during the period
- In March 2023, MSAB received an order for SEK 17 million from a new customer in northern Europe. This is the first deal of its kind for a solution that specifically focuses on strengthening the customer's possession of forensic technology for the benefit of witnesses and victims.
- On March 13, CEO Joel Bollö resigned but remains formally employed in the Company up to and including June 12, 2023, with limited duties during the transition period of three months. The Board has initiated the recruitment process for a new CEO who can accelerate global expansion and realise the full potential of MSAB's global operations. Mikael Falkovén, Head of Sales for EMEA, Latin America and Asia, has taken over as Acting CEO.
- Earnings per share before/after dilution amounted to SEK 0.36 (0.07).
-
Cash flow from operating activities increased to SEK 24.0 (5.5) million, in addition to the results for the period and driven primarily by a positive change in working capital.
-
MSAB's Nomination Committee proposes Peter Gille, former Board member, as Board Chairman and Andreas Hedskog, Jesper Kärrbrink and Charlotte Stjerngren as new Board members. Current Board Chairman Bernt Ingman and Hanna Bilir have declined re-election.
- MSAB launched XRY Pro, a new, state-of-the-art tool that enables investigators to extract data from the most challenging and secure mobile phones. The XRY product suite now includes extraction and decryption for over 44,200 devices and 4,360 app versions.
Return on capital employed, rolling 12 months
24.0 MSEK
Cash flow from operating activities, Q1 2023
Percentage of net sales related to license renewals, rolling 12 months
| JAN - MAR 2023 |
JAN - MAR 2022 |
APR 2022 - MAR 2023 |
JAN - DEC 2022 |
|
|---|---|---|---|---|
| Net sales, MSEK | 87.4 | 75.6 | 374.7 | 363.0 |
| EBIT, MSEK | 8.2 | -0.2 | 27.2 | 18.8 |
| EBIT-margin, % | 9.3 | -0.3 | 7.3 | 5.2 |
| Earnings per share before/ after dilution, SEK | 0.36 | 0.07 | 1.21 | 0.92 |
| Cash flow from operating activities, MSEK | 24.0 | 5.5 | 68.4 | 49.8 |
| Return on equity 12 months, % | 20.8 | 31.1 | 20.8 | 16.6 |
| Return on capital employed 12 months, % | 35.4 | 57.1 | 35.4 | 27.4 |
| Cash flow from operations / per share, SEK | 1.30 | 0.30 | 3.70 | 2.68 |
| Equity per share, SEK | 6.65 | 5.02 | 6.09 | 5.58 |
CEO Comments
MSAB has had an active, successful first quarter 2023. We have signed several important contracts, participated in several major international branch events, and executed many customer activities together with distributors and on our own. Our product offering continues to develop robustly, particularly our extraction solution XRY, which now includes advanced software - XRY Pro - for forensic labs.
This has been the best first quarter in MSAB's history and we set a new record for consolidated net sales of SEK 87.4 million, compared to SEK 75.6 million last year, an increase of 15.6 percent. Profit after tax amounted to SEK 6.7 million, compared to SEK 1.4 million last year. Despite generally high inflation, the mix of products and services delivered and a restrictive approach to expenses contributed to the improved result.
Cash flow from operating activities increased to SEK 24.0 million, compared to SEK 5.5 million for the corresponding period 2022, primarily due to our intensified efforts with accounts receivable.
The mobile forensic industry remains one of the most rapidly evolving and fastest changing branches in the world. As suppliers to law enforcement agencies, the need to manage and develop new techniques which address customers' needs during process change and digital transformation is great. It requires legally secure processes and continuous development of our product offering and business model. MSAB's continuing growth also depends on competence development for existing personnel and that we quickly increase our pace of recruitment. Today we are looking for many new employees globally to secure the right competence and capacity.
Demand for our solutions is strong, but the company is still affected by component shortages and late deliveries from suppliers. We expect that this situation will improve during the last half of 2023.
The increase in European sales has been primarily driven by the British market. We are also seeing former customers rediscovering the strength in MSAB's product development over the last few years, which generates additional sales. Even countries in Asia are expanding, albeit from lower volumes. The North American market saw a relatively weak quarter, and several initiatives have been taken to grow this important market.
We see increased demand from defence and intelligence agencies. These segments must be able to handle mobile forensics out in the field; hence their interest in MSAB Frontline. Other agencies which use mobile phones to exercise authority, e.g. when identifying people at border controls or in migration/asylum cases, are also demonstrating an increased need.
The security threats we have seen over the last few years affects businesses as well as authorities. Last year, under strictly controlled forms, we completed several smaller deals to support organizations.
Being an established supplier of mobile forensic solutions in Europe benefits MSAB and creates opportunities. Authorities and companies are keen to work with ethical suppliers that adhere to EU legislation. In this we are the only commerical actor, which resulted in MSAB being chosen as partner in the EU-financed Formobile project. Our participation in the project, where the objective was creating an end-to-end mobile forensic investigation chain for the EU legal system, improving digital security while respecting fundamental human rights, has further strengthened MSAB's postion.
I am convinced that MSAB:s ethical profile and strong product offering will continue to generate appreciation from authorities and businesses.
Stockholm, April 2023 Mikael Falkovén, Acting CEO, MSAB
Financial overview January - March 2023
NET SALES
Consolidated net sales rose 15.6 percent to SEK 87.4 (75.6) million. Growth adjusted for currency fluctuations was 11.0 percent.
License renewals and new sales represented the lion's share of growth in Europe for the period compared with last year. Growth in Europe was 33 percent, while Asia saw growth of 18 percent, albeit from lower levels. North America is reorganising the sales organisation; several new sales agents have been recruited to strengthen MSAB's presence, primarily in the southern and western USA. Compared with the same period last year, North America experienced negative growth: -27 percent. XRY Office remains the best-selling product for license renewals and new sales.
OPERATING EXPENSES
Cost of goods for resale amounted to SEK 5.2 (7.4) million. These costs are in part affected by currency fluctuations and vary as a rule according to the product mix sold. The period saw a smaller percentage of hardware sold compared with last year.
Other external expenses amounted to SEK 15.2 (15.8) million. Total costs came in at approximately the same level as previously. Local and travel costs and travel expenses have increased somewhat compared with last year, driven by inflation and higher levels of activity within sales and marketing, including more trips, training, and conferences. Expenses for IT and marketing have declined somewhat due to periodicity.
Personnel expenses amounted to SEK 55.1 (49.5) million. Wage drift contributed to the increase. Expense levels were also impacted by the weak Swedish krona vis-à-vis primarily USD and GBP as almost half of MSAB's salaries are paid in foreign currencies. Depreciation amounted to SEK 3.7 (3.1) million.
EBIT
EBIT for the quarter amounted to SEK 8.2 (-0.2) million, which corresponds to an EBIT margin of 9.3 (-0.3) percent.
NET FINANCIAL INCOME/EXPENSE
Net financial income/expense amounted to SEK 0.3 (1.6) milllion for the quarter. Net financial income/expense was comprised primarily of revaluation of cash and cash equivalents in foreign currencies, and was impacted positively by the weak Swedish krona mainly visà-vis the USD and EUR, which are the Group's two largest translation currencies, along with GBP.
PROFIT/LOSS AFTER TAX
Profit/loss after tax amounted to SEK 6.7 (1.4) million for the quarter.
CASH FLOW
Cash flow from operating activities amounted to SEK 24.0 (5.5) million for the period. Cash flow before changes in working capital contributed SEK 10.3 (2.3) million to the positive cash flow, while the change in working capital contributed SEK 13.7 (3.1) million. It is primarily a reduction in accounts receivable that contributed to the positive change in working capital. Total cash flow for the period amounted to SEK 20.3 (2.3) million. Investments for the period amounted to SEK 0.0 (0.3) million.
EMPLOYEES
As of 31 March 2023, there were 191 (190) employees. The average number of employees for the period was 190 (189).
THE PARENT COMPANY
The Parent Company's net sales for the period amounted to SEK 65.1 (53.8) million. EBIT for the period was SEK 6.0 (-3.0) milllion.
Financial overview
January - March 2023
Distribution of new sales
Net sales per type of revenue
Turnover by region
Market comments
The total order intake experienced healthy growth during first quarter 2023, and turnover increased 15.6 percent compared with the same period 2022.
EMEA & LATIN AMERICA
The first quarter of 2023 was exceptional, with a strong order intake resulting in the company's highest first quarter revenues ever for the region. The order intake has been driven primarily by customers in the European market.
The demand for extraction and analysis software for gaining access to digital forensic data has become increasingly important for law enforcement agencies, while the demand for personal integrity and "cyber threat" must be simultaneously managed. These demands mean that MSAB's products and solutions are receiving ever greater attention from existing and potential customers.
Those MSAB solutions that offer process flow, that make extraction and analysis more effective for criminal investigators, and which make it easier for them to cooperate, are in great demand in several European countries. This has accelerated sales of the company's extraction product XRY and its analysis tool XAMN Pro. MSAB is being rewarded with increasing trust from existing customers globally in this area resulting in a high degree of license renewals.
The company's British operations continue to expand with larger orders to meet national law enforcement initiatives, as well as a high renewal rate and increased sales to existing customers.
During the quarter, the company received renewed trust from a national police agency in the Nordics to deliver the analysis software XAMN Pro to thousands of investigators.
In general, there is a high level of activity and great interest within the European market for managing digital forensic data, which benefits MSAB which can meet these needs.
NORTH AMERICA
The first quarter is normally characterised by lower income than for other quarters during the year, and the resignation of the CEO for the region led to certain challenges as the company reorganizes its sales team. To meet competitive challenges in the USA, MSAB recruited new sales managers who will focus their efforts on state and local police authorities, primarily in western and central USA.
Major institutions and law enforcement agencies in the region demonstrate interest in MSAB's end-to-end solutions, training, and tools for personnel on the front line, which bodes well for future growth. During the quarter, MSAB moved its storage from Mississippi to Washington DC, with closer proximity to the company's USA offices, in order to streamline work and deliveries to the region's largest customer.
ASIA & OCEANIA
The order intake in Asia has increased from relatively low levels, where demand is greatest for services and end-to-end solutions. The efforts the company has expended in Asia, especially in India and Japan, are attracting high levels of interest, which strengthens our confidence for expansion in the region over the next few years.
PRODUCTS
In March, the first major product launch of the year was finalised, and a prototype for import of CCTV as a test solution was ready for delivery to a major customer in the UK. This can increase the company's penetration of MSAB Kiosk in the country this year, and even to other regions in 2024.
MSAB's most advanced product, Advanced Acquisition Lab (AAL) is being integrated into the company's new extraction software XRY Pro. A special product launch is also underway with focus on adding Google Pixel support for generation 6 and 7 mobile phones.
Other comments
ACCOUNTING PRINCIPLES
This report has been prepared for the Group in accordance with the Swedish Annual Accounts Act and IAS 34 Interim Financial Reporting, and for the Parent Company in accordance with the Swedish Annual Accounts Act and Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. Information as per IAS 34 is reported in notes and in other places throughout the report. The accounting principles adopted by the Group and the Parent Company are consistent with the accounting principles used to prepare the most recent annual report. For current financial assets and liabilities, the reported value is a reasonable estimate of fair value.
The basic principle is that the Group reports revenue in the way that best reflects the transfer of control of the promised products and services to the customer. This takes place through the five step model defined under IFRS 15. The Company has two types of income: product sales, and training and other services.
SIGNIFICANT RISKS AND UNCERTAINTY FACTORS
Through its operations, the Group is exposed to risks and uncertainty factors. These risks and uncertainties are the same for the Parent Company and the Group. Freight and commodity prices have affected the Company's expenses, and uncertainty regarding prices and delivery times remain. The Company has been impacted marginally by a shortage of certain components.
Significant risks and uncertainty factors are described in the 2022 Annual Report on page 38 and in Note 4 on pages 50-51.
SEASONAL EFFECTS
MSAB is not dependent on certain seasons in the usual sense of the term. However, the majority of the Company's customers have a purchasing pattern that follows their budget period. Budget periods differ between countries, but most common in MSAB's largest markets is that they follow the calendar year or end on 30 September. Historically, this is reflected in sales such that the second half-year is stronger than the first.
RELATED PARTY TRANSACTIONS
Related party transactions consist primarily of intra-Group transactions. The same applies for the Parent Company. These are described in the 2022 Annual Report on page 60, Note 25.
AUDITOR REVIEW
This interim report has not been reviewed by auditors.
SIGNIFICANT EVENTS SINCE THE END OF THE PERIOD No signficant events have occurred since the end of the period.
FINANCIAL CALENDER
| Annual Report 2022 | 2023-05-11 |
|---|---|
| Interim Report April - June 2023 | 2023-07-20 |
| Interim Report July - September 2023 | 2023-10-26 |
| Year-end Report 2023 | 2024-01-25 |
QUARTERLY DATA
| 2023 | 2022 | 2021 | 2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Net sales, MSEK | 87.4 | 106.6 | 93.7 | 87.1 | 75.6 | 108.5 | 89.6 | 64.6 | 70.4 | 66.7 | 93.3 | 83.9 | 66.2 |
| EBIT, MSEK | 8.2 | 7.7 | 8.7 | 2.7 | -0.2 | 16.2 | 24.0 | -1.9 | 6.0 | -4.0 | 29.4 | 12.1 | -8.8 |
| EBIT-margin, % | 9.3 | 7.2 | 9.2 | 3.1 | -0.3 | 15.0 | 26.7 | -2.9 | 8.5 | -6.0 | 31.5 | 14.4 | -13.2 |
| Earnings after tax, KSEK | 6.7 | 6.3 | 6.8 | 2.7 | 1.4 | 12.7 | 18.6 | -2.9 | 6.5 | -7.0 | 21.4 | 10.4 | -8.5 |
| Earnings per share, SEK | 0.36 | 0.34 | 0.37 | 0.15 | 0.07 | 0.69 | 1.00 | -0.16 | 0.35 | -0.38 | 1.16 | 0.56 | -0.46 |
| Cash flow from operating activities, MSEK | 24.0 | 43.3 | 0.0 | 1.0 | 5.5 | 10.5 | -10.8 | 1.1 | 9.4 | 47.2 | -10.8 | 1.1 | 9.2 |
| Return on equity, % | 6.2 | 6.1 | 7.2 | 3.4 | 1.4 | 14.1 | 21.2 | -4.3 | 7.8 | -8.5 | 24.6 | 15.7 | -9.7 |
| Return on capital employed, % | 8.9 | 9.6 | 11.5 | 6.0 | 2.9 | 20.3 | 27.7 | -2.1 | 10.8 | -4.3 | 34.5 | 21.7 | -8.1 |
| Equity ratio, % | 43.2 | 40.2 | 50.7 | 47.4 | 45.8 | 43.9 | 44.4 | 38.5 | 49.7 | 46.8 | 47.5 | 41.2 | 38.2 |
| Cash flow from operations/per share, SEK | 1.30 | 2.33 | 0.00 | 0.05 | 0.30 | 0.60 | -0.60 | 0.10 | 0.50 | 2.56 | -0.15 | -0.08 | 0.36 |
| Equity per share, SEK | 6.65 | 6.26 | 6.02 | 5.41 | 5.02 | 4.90 | 4.20 | 3.10 | 5.30 | 4.78 | 5.29 | 4.19 | 3.78 |
CONSOLIDATED INCOME STATEMENT IN SUMMARY
| MSEK | JAN - MAR 2023 |
JAN - MAR 2022 |
APR 2022 - MAR 2023 |
JAN - DEC 2022 |
|---|---|---|---|---|
| Net sales | 87.4 | 75.6 | 374.8 | 363.0 |
| Operating income | 87.4 | 75.6 | 374.8 | 363.0 |
| Cost of goods sold | -5.2 | -7.4 | -54.7 | -56.8 |
| Other external costs | -15.2 | -15.8 | -69.4 | -70.0 |
| Personnel costs | -55.1 | -49.5 | -209.8 | -204.2 |
| Depreciation of fixed assets | -3.7 | -3.1 | -13.7 | -13.1 |
| Total operating cost | -79.2 | -75.8 | -347.6 | -344.2 |
| Operating profit - EBIT | 8.2 | -0.2 | 27.2 | 18.8 |
| Financial income | 1.4 | 3.0 | 7.9 | 9.5 |
| Financial expenses | -1.1 | -1.4 | -6.5 | -6.8 |
| Profit/loss before tax | 8.5 | 1.4 | 28.5 | 21.5 |
| Tax | -1.8 | - | -6.1 | -4.3 |
| Net profit/loss after tax | 6.7 | 1.4 | 22.4 | 17.1 |
| Attributable to owners of the Parent Company | 6.7 | 1.4 | 22.4 | 17.1 |
| Earnings per share, SEK | 0.36 | 0.07 | 1.21 | 0.89 |
STATEMENT OF COMPREHENSIVE INCOME
| MSEK | JAN - MAR 2023 |
JAN - MAR 2022 |
APR 2022 - MAR 2023 |
JAN - DEC 2022 |
|---|---|---|---|---|
| Net profit/loss after tax | 6.7 | 1.4 | 22.4 | 17.1 |
| Currency translation differences | 0.2 | 0.5 | 7.9 | 8.2 |
| Total comprehensive income | 6.9 | 1.8 | 30.3 | 25.3 |
| Comprehensive income for the period attributable to the share | ||||
| holders of the parent company | 6.9 | 1.8 | 30.3 | 25.3 |
CONSOLIDATED BALANCE SHEET IN SUMMARY
| MSEK | 31 MAR 2023 | 31 MAR 2022 | 31 DEC 2022 |
|---|---|---|---|
| ASSETS | |||
| Tangible assets | 1.3 | 1.5 | 1.5 |
| Assets with right to use | 55.9 | 16.2 | 59.4 |
| Total non-current assets | 57.2 | 17.7 | 60.9 |
| Inventories | 9.1 | 9.0 | 8.7 |
| Accounts receivable - trade | 78.5 | 91.3 | 97.1 |
| Other current assets | 15.0 | 15.3 | 17.6 |
| Cash and cash equivalents | 124.8 | 68.9 | 104.4 |
| Total current assets | 227.3 | 184.5 | 227.8 |
| TOTAL ASSETS | 284.5 | 202.2 | 288.8 |
| EQUITY AND LIABILITIES | |||
| Equity | 122.8 | 92.7 | 116.1 |
| Total equity | 122.8 | 92.7 | 116.1 |
| Long term leasing liabilities related to assets with right to use | 38.2 | 5.7 | 41.9 |
| Total long term liabilities | 38.2 | 5.7 | 41.9 |
| Accounts payable - trade | 3.8 | 3.9 | 12.3 |
| Current tax liability | 1.9 | 7.5 | 7.4 |
| Leasing liabilities related to assets with right to use | 14.1 | 7.6 | 13.6 |
| Other current liabilities | 103.8 | 84.8 | 97.4 |
| Total current liabilities | 123.5 | 103.8 | 130.8 |
| TOTAL EQUITY AND LIABILITIES | 284.5 | 202.2 | 288.8 |
CHANGE IN EQUITY IN SUMMARY
| MSEK | 31 MAR 2023 | 31 MAR 2022 | 31 DEC 2022 |
|---|---|---|---|
| Opening balance | 116.1 | 90.8 | 90.8 |
| Profit/loss for the period | 6.9 | 1.8 | 25.3 |
| Dividend | - | - | - |
| Equity at the end of the period | 122.8 | 92.7 | 116.1 |
CASH FLOW STATEMENT IN SUMMARY
| MSEK | JAN - MAR 2023 |
JAN - MAR 2022 |
APR 2022 - MAR 2023 |
JAN - DEC 2022 |
|---|---|---|---|---|
| Profit after paid tax and non-cash items | 10.3 | 2.3 | 34.4 | 26.4 |
| Working capital changes | 13.7 | 3.1 | 34.0 | 23.4 |
| Cash flow from operating activities | 24.0 | 5.5 | 68.4 | 49.8 |
| Investments in fixed assets | - | -0.3 | -1.4 | -1.7 |
| Cash flow from investing activities | - | -0.3 | -1.4 | -1.7 |
| Dividend paid to shareholders | - | - | - | - |
| Amortization of leasing liability | -3.8 | -2.8 | -13.0 | -12.0 |
| Cash flow from financing activities | -3.8 | -2.8 | -13.0 | -12.0 |
| CASH FLOW FOR THE PERIOD | 20.3 | 2.3 | 54.1 | 36.1 |
| Cash at the beginning of the period | 104.4 | 66.0 | 68.9 | 66.0 |
| Exchange rate difference in cash | 0.2 | 0.5 | 1.9 | 2.3 |
| Cash at the end of the period | 124.8 | 68.9 | 124.8 | 104.4 |
SEGMENT REPORTING
| EMEA & | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Asia | Latin America | North America | Total | ||||||
| MSEK | JAN - MAR 2023 |
JAN - MAR 2022 |
JAN - MAR 2023 |
JAN - MAR 2022 |
JAN - MAR 2023 |
JAN - MAR 2022 |
JAN - MAR 2023 |
JAN - MAR 2022 |
|
| Product sales | 7.6 | 6.9 | 58.8 | 38.3 | 12.2 | 17.6 | 78.6 | 62.8 | |
| Training & other services | 1.6 | 0.8 | 4.7 | 9.4 | 2.5 | 2.6 | 8.8 | 12.8 | |
| Total | 9.2 | 7.8 | 63.5 | 47.7 | 14.7 | 20.1 | 87.4 | 75.6 | |
| Recognized at a certain point in time | 7.7 | 6.4 | 54.9 | 41.2 | 9.4 | 15.3 | 72.0 | 62.9 | |
| Recognized over time | 1.5 | 1.4 | 8.6 | 6.5 | 5.3 | 4.8 | 15.4 | 12.7 | |
| Total | 9.2 | 7.8 | 63.5 | 47.7 | 14.7 | 20.1 | 87.4 | 75.6 |
PARENT COMPANY INCOME STATEMENT IN SUMMARY
| MSEK | JAN - MAR 2023 |
JAN - MAR 2022 |
JAN - DEC 2022 |
|---|---|---|---|
| Net sales | 65.1 | 53.8 | 273.2 |
| Operating income | 65.1 | 53.8 | 273.2 |
| Cost of goods sold | -5.2 | -7.4 | -56.8 |
| Other external costs | -10.4 | -11.1 | -46.8 |
| Personnel costs | -40.2 | -35.5 | -145.8 |
| Depreciation of fixed assets | -3.2 | -2.8 | -11.4 |
| Operating cost | -59.0 | -56.8 | -260.9 |
| Operating profit - EBIT | 6.0 | -3.0 | 12.3 |
| Net financial items | 0.3 | 1.7 | 2.8 |
| Profit/loss before tax | 6.3 | -1.3 | 15.1 |
| Tax | -1.4 | - | -3.3 |
| Net profit/loss after tax | 4.9 | -1.3 | 11.8 |
STATEMENT OF COMPREHENSIVE INCOME
| MSEK | JAN - MAR 2023 |
JAN - MAR 2022 |
JAN - DEC 2022 |
|---|---|---|---|
| Net profit/loss after tax | 4.9 | -1.3 | 11.8 |
| Total comprehensive income | 4.9 | -1.3 | 11.8 |
PARENT COMPANY BALANCE SHEET IN SUMMARY
| MSEK | 31 MAR 2023 | 31 MAR 2022 | 31 DEC 2022 |
|---|---|---|---|
| ASSETS | |||
| Tangible assets | 0.7 | 1.5 | 0.9 |
| Assets with right to use | 50.9 | 9.7 | 53.9 |
| Shares in group companies | 0.4 | 0.4 | 0.4 |
| Total fixed assets | 52.1 | 11.6 | 55.2 |
| Inventories | 9.1 | 9.1 | 8.7 |
| Accounts receivable - trade | 10.0 | 23.1 | 24.3 |
| Other current assets | 58.2 | 46.5 | 39.9 |
| Cash and cash equivalents | 44.8 | 25.3 | 61.1 |
| Total current assets | 122.1 | 104.0 | 134.0 |
| TOTAL ASSETS | 174.2 | 115.6 | 189.3 |
| EQUITY AND LIABILITIES | |||
| Share capital | 3.8 | 3.8 | 3.8 |
| Share premium | 20.3 | 20.3 | 20.3 |
| Restricted equity | 24.1 | 24.1 | 24.1 |
| Statutory reserve | 7.8 | 7.8 | 7.8 |
| Profit brought forward | 42.2 | 23.3 | 37.3 |
| Non-restricted equity | 50.0 | 31.1 | 45.1 |
| Total equity | 74.1 | 55.2 | 69.2 |
| Long term leasing liabilities related to assets with right to use | 35.2 | 1.2 | 38.4 |
| Total long term liabilities | 35.2 | 1.2 | 38.4 |
| Accounts payable - trade | 3.2 | 2.8 | 10.0 |
| Current tax liability | 0.0 | 6.3 | 6.2 |
| Short term leasing liabilities related to assets with right to use | 12.0 | 5.8 | 11.5 |
| Other current liabilities | 49.7 | 44.3 | 53.9 |
| TOTAL EQUITY AND LIABILITIES | 64.9 | 59.2 | 81.7 |
| SUMMA EGET KAPITAL OCH SKULDER | 174.2 | 115.6 | 189.3 |
Definitions
MSAB presents certain financial metrics in the interim report that are not defined under IFRS. The company believes that these metrics provide valuable supplementary information to investors and the company's management as they allow for evaluation of the company's performance. Because not all companies calculate financial measures in the same way, these are not always comparable with metrics used by other companies. These financial metrics should therefore not be regarded as replacements for metrics defined in accordance with IFRS. The table below presents the alternative key figures that have been deemed relevant.
The key figures are based on reports on earnings, financial position, change in equity and cash flow. In cases where the key figures cannot be directly derived from the above reports, the derivation and calculation of these are shown below.
| ALTERNATIVE METRICS | DEFINITIONS AND CALCULATIONS |
|---|---|
| Cash flow from operating activities per share |
Cash flow from operating activities in relation to average outsatnding shares before/after dilution. |
| Capital employed / Average capital employed |
Capital employed calculated as total assets less non-interest-bearing liabilities. Average capital employed is calculated as capital employed over a 12 months-period. Capital employed at beginning of period plus capital employed at end of period divided by two |
| Earnings per share * | Profit/loss after tax in relation to average number of outstanding shares before/after dilution |
| Equity per share | Equity in relation to outstanding shares at the end of the period |
| Equity ratio % | Equity in relation to total assets |
| Net financial items | Net of financial income and expenses |
| Operating margin (EBIT margin) % | EBIT in relation to net sales |
| Operating profit (EBIT) | Earnings before interest and taxes |
| Return on capital employed 12 months % |
EBIT plus financial items in relation to average capital employed. |
| Return on equity 12 months % | Profit/loss after tax in relation to average adjusted equity. Equity at the beginning of the peri od plus equity at the end of the period divided by two. |
| Revenue growth % | Net sales current period in relation to same period previous year |
* Defined in accordance with IFRS
RECONCILIATIONS OF MEASUREMENTS THAT ARE NOT DEFINED UNDER IFRS
| 2023 | 2022 | 2021 | 2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MSEK | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Total assets, MSEK | 284.5 | 288.8 | 219.2 | 210.9 | 202.2 | 206.5 | 174.0 | 149.1 | 177.4 | 188.7 | 205.8 | 188.0 | 182.8 |
| Accounts payables, MSEK | -3.8 | -12.3 | -7.8 | -5.8 | -3.9 | -11.0 | -7.1 | -5.5 | -5.2 | -6.0 | -3.4 | -4.3 | -4.5 |
| Tax liabilities, MSEK | -1.9 | -7.4 | -9.0 | -7.5 | -7.5 | -9.9 | -5.3 | -1.1 | -2.0 | -1.1 | -5.8 | -1.1 | -1.9 |
| Leasing liabilities related to assets with | |||||||||||||
| right to use | -52.2 | -55.5 | -7.9 | -10.8 | -13.3 | -10.0 | -10.6 | -13.3 | -16.3 | -27.0 | -21.7 | -24.3 | -25.7 |
| Other liabilities, MSEK | -103.8 | -97.4 | -83.3 | -86.7 | -84.8 | -85.0 | -73.8 | -71.8 | -75.8 | -66.3 | -77.1 | -80.9 | -78.4 |
| Capital employed, MSEK | 122.8 | 116.1 | 111.1 | 100.0 | 75.0 | 90.6 | 77.2 | 57.5 | 78.2 | 88.3 | 97.7 | 77.4 | 72.3 |
| Average capital employed, MSEK | 98.9 | 103.3 | 94.2 | 78.8 | 76.6 | 89.5 | 87.4 | 67.4 | 75.2 | 82.2 | 87.1 | 66.3 | 89.6 |
The information in this report is such that MSAB, Corporate ID number 556244-3050, is required to disclose in accordance with the EU's Market Abuse Regulation and information that Micro Systemation AB (publ) is obliged to make public in accordance with the Securities Market Act. This report is published in Swedish and English versions. In the event of discrepancies between the two reports, the Swedish version shall apply. The information in this report was submitted for publication on 27 April, 2023 at 08:00.
This report as well as previous financial reports and press releases are available on the Company's website www.msab.com.
Contact
Mikael Falkovén Interim Chief Executive Officer
+46 73 981 83 40 [email protected]
Tony Forsgren
Chief Financial Officer
+46 70 686 06 00 [email protected]
Address: Box 17111 SE-104 62 Stockholm Sweden
| Web: | www.msab.com |
|---|---|
| Tel: | +46 8739 0270 |
| Fax: | +46 8730 0170 |
| Org nr: | 556244-3050 |
| VAT nr: | SE556244305001 |
MSAB in brief
MSAB is a world leader within digital forensics for extraction and analysis of data from seized mobile devices. The Company develops high quality, intuitive software that has become the de facto standard for many customers for the purpose of securing evidence in criminal investigations. The products can be complemented with tools for reporting and a wide variety of training with certification for legally secure mobile forensics. The Company develops innovative approaches that facilitate faster, simpler and more efficient ways to secure evidence and in ways that create a high degree of value for the Company's customers. MSAB has clear growth strategies combined with a business model that entails scalability and a high degree of recurring revenue.
MSAB operates within a market that is developing rapidly. Through long-term investment in product development, market presence and organic strength, MSAB is able to consolidate its market position. The Company's belief is that the need for professional tools for reading and analysing data from digital devices will continue to increase. MSAB is mainly focused on organic growth but in some cases evaluates acquisitions.
WHO?
MSAB assists law enforcement authorities - the police, military, migration, corrections, and customs - carry out their missions. Typical users of MSAB's products are experts within digital forensics, investigators, analysts, and police officers in the field.
WHERE?
MSAB is represented in 15 countries and serves customers on all continents through its sales offices and via distributors.
WHAT?
The Company offers systems that extract and analyse data from devices such as mobile phones, tablets and drones, and products that can unlock digital devices, extract and decrypt information.
SUSTAINABILITY
The Company's business concept is to supply solutions that help law enforcement agencies stremaline their work to secure evidence from digital devices. Hence the Company through its solutions strives to create a more legally secure society where more crimes are solved and prevented, which in turn means that the Company's entire existence is a major contribution to a sustainable society. Because the Company essentially develops software, its impact on the environment is limited, but the Board strives to ensure that the Company complies with environmental requirements in the different markets where the Company operates.
