Interim / Quarterly Report • Oct 28, 2015
Interim / Quarterly Report
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INTERIM REPORT 2015 JANUARY - SEPTEMBER
The positive development from the recent quarters continues and we can present another quarter with record sales – SEK 180 m. This means that we have had seven consequtive quarters with an unbroken sales increase.
A change in the product mix for the third quarter and a cost increase in our supply chain result in a somewhat weaker gross margin during the third quarter. Together with continuing intensive investments in product development and decreasing capitalization of development expenses, this results in a 17 % operating margin, which is lower than for the same period the previous year.
Our organic growth developed well during the first nine months, primarily driven by a good development of our Anybus products where both new product launches, and a solid, well-established customer base contributed to a good growth.
Central Europe and the Nordic region continues to develop well during the first nine months of the year. We can also see a positive trend in Italy where sales for the current year has developed very well. North America shows a relatively weak trend but the strong US currency raised reported sales. Sales in Asia, led by Japan and China developed well.
IXXAT INpact – the first product based on combined technology from both Anybus and IXXAT – was presented during the quarter. This is a network communication card for industrial PC applications, an area where IXXAT already provides a number of products for communication. This new product is developed using the HMS NP40 chip technology and opens up new application areas for our IXXAT products.
We continue to notice a substantial interest from IT companies intending to use HMS technology to bridge information from industrial machines to IT systems on the enterprise level, an expanding market in the area of Industrial Internet of Things (IIoT).
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".
"IXXAT INpact – the first product based on combined technology from both Anybus and IXXAT – was presented during the quarter. This opens up new application areas for our IXXAT products."
Staffan Dahlström, CEO, HMS Networks AB
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| Quarterly data | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 |
| Net sales (SEK m) | 180 | 177 | 170 | 156 | 152 | 141 | 139 | 126 |
| Order intake (SEK m) | 180 | 170 | 174 | 162 | 148 | 153 | 148 | 132 |
| Operating profit (SEK m) | 31 | 24 | 32 | 18 | 37 | 21 | 22 | 13 |
| Gross margin (%) | 59.9 | 62.2 | 62.4 | 62.0 | 63.0 | 61.9 | 62.1 | 63.7 |
| Operating margin (%) | 17.3 | 13.7 | 18.7 | 11.5 | 24.4 | 14.8 | 15.5 | 10.7 |
| Return on capital (%) | 17.9 | 13.7 | 20.4 | 8.8 | 26.0 | 14.3 | 14.9 | 10.3 |
| Earnings per share (SEK) | 1.75 | 1.32 | 1.95 | 0.81 | 2.28 | 1.22 | 1.27 | 0.84 |
| Equity per share (SEK) | 40.28 | 38.18 | 39.18 | 37.43 | 36.19 | 33.95 | 34.75 | 33.44 |
| Cash flow for operating activities per share (SEK) | 3.13 | 2.52 | 0.72 | 2.32 | 2.56 | 2.57 | 0.81 | 2.18 |
Net sales for the last twelve months amounted to SEK 683 m (559) corresponding to a 22 % increase. In total the devaluation of the Swedish currency in relation to the major HMS currencies had a SEK 54 m positive impact on net sales compared to the previous twelve month period. The order intake for the last four quarters amounted to SEK 687 m (580).
Net sales for the first nine months amounted to SEK 527 m (433) corresponding to a 22 % increase. Adjusted for a SEK 44 m positive fluctuation in currencies the increase was 11 %. Order intake for the first nine months was SEK 524 m (448).
Net sales for the third quarter 2015 totalled to SEK 180 m (152), corresponding to a 18 % increase compared to the same quarter the previous year. Adjusted for a SEK 12 m positive currency effect the volume increase was 10 % in local currencies. Order intake increased with SEK 32 m to SEK 180 m (148), of which SEK 175 m will be delivered during the upcoming twelve months. In local currencies order intake during the third quarter increased with 14 %.
Operating profit totalled to SEK 105 m (93) for the last four quarters, equivalent to an operating margin of 15 % (17). Currency effects had a SEK 23 m positive impact on the operating result compared to the previous year.
Operating profit for the first nine months amounted to SEK 87 m (80), corresponding to an 17 % (18) operating margin. Currency fluctuations compared to the same period the previous year had a SEK 20 m positive impact.
The operating profit for the third quarter 2015 totalled to SEK 31 m (37), corresponding to a 17 % (24) operating margin. On Group level changes in exchange rates had a SEK 6 m positive impact compared to the same period the previous year.
The Group's equity amounted to SEK 455 m (409). The total number of shares at the end of the year was 11,322,400. The Group's equity/assets ratio amounted to 54 % (50).
The graph shows turnover per quarter on the bars referring to the scale on the left axis. The line shows turnover for the latest 12 month period referring to the scale on the axis to the right.
The graph shows operating result per quarter in the bars referring to the scale on the left axis. The line shows operating result for the last 12 month period referring to the scale on the axis to the right.
The tax charge for the first half-year was SEK 19 m (16). The tax charge for the current period has been calculated on the basis of the tax situation applying to the Group at present and the profit development of the reporting entities belonging to the Group.
| Change in Group Equity | |||
|---|---|---|---|
| (SEK 000s) | Sep 30 2015 | Sep 30 2014 | Dec 31 2014 |
| Balance at 1 January | 422,599 | 377,557 | 377,557 |
| Total comprehensive income for the period | 59,165 | 55,635 | 69,209 |
| Share related-payment | 1,329 | 894 | 1,238 |
| Dividends | -28,229 | -25,406 | -25,405 |
| Closing balance | 454,864 | 408,680 | 422,599 |
Assets and liabilities in foreign currencies are revaluated at closing date. Currency hedging contracts are revaluated at the date of closing and are also affecting the result on the date of expiration. Changes in book value due to revaluation of operating balance sheet items and currency hedging contracts are disclosed as other operating income and other operating expenses. Changes in book value related to assets in foreign currencies i.e. liquid funds, are disclosed as financial income and expenses. Net sales and expenses are affected by changes in exchange rates. This will have an impact on income and costs.
Net sales for the first nine months consist of 61 % in EURO, 25 % in USD, 7 % in Japanese Yen and 7 % in SEK and other currencies. Cost of goods sold consists of 72 % in EURO, 22 % in USD and 1 % in Japanese Yen. Operating expenses consists of 38 % in EURO, 11 % in USD, 4 % in Japanese Yen and 47 % of SEK and other currencies.
The Group applies a policy for currency hedging described in the annual report.
Cash flow from operating activities in the first nine months 2015 amounted to SEK 72 m (67).
The investments in tangible assets for the nine month period totalled SEK 4 m (2). Investments in intangible assets for the period totalled SEK 12 m (22) and comprise internal development costs. Capitalized expenses is to the majority related to the development of new technology platforms. As several new technology platforms recently were completed a comparably smaller part of the Groups development expenses was capitalized during the period. Depreciation on capitalized development costs amounted to SEK 13 m (10) during the period.
The acquisition of IXXAT in February 2013 has generated a SEK 255 m overvalue before tax for the group of which SEK 144 m is allocated to technology platforms, customers and brand name included in the acquisition. During the first nine months 2015 depreciation on purchase price allocated to assets acquired was reflected with SEK 5 m (5) in the income statement.
To balance the Group´s currency exposure a 32 m€ loan was used to finance the acquisition made in the first quarter 2013. At the end of the period the loan amounted to 22 m€.
At the end of the period the cash equivalents totalled SEK 19 m (24) and unutilized credit facilities SEK 30 m. The Group's net debt amounted to SEK 194 m (233). The group's long term debt is amortized with SEK 36 m annually. During the first nine months 2015 SEK 28 m (27) was amortized. During the second quarter HMS distributed dividend payments to its shareholder equal to SEK 2.50 per share (2.25), in total SEK 28 m.
The HMS Group long term growth is supported by a continued inflow of design-wins, a broader product offering within the Gateway product family and Remote Management, supplementary technology platforms from IXXAT, a stronger customer focus and an expansion of the HMS sales channels according to the existing strategy.
At present the global market for HMS products is viewed as irregular with cautiously positive undertones. The effect on the market for HMS product offer and currency effects are difficult to predict but HMS overall goals are unchanged: A long term average growth of 20 % per year and an operating margin above 20 %.
HMS Networks AB (publ) is listed on the Nasdaq OMX Stockholm Mid Cap list, in the Information Technology sector. The total number of shares amounted to 11,322,400 of which 31,000 shares are held by the company.
The Company has launched three share saving programs. Based on a decision by the Annual General Meeting permanent employees are offered to save in HMS shares in an annual share saving program. Between 47 % and 60 % of the employees opted to participate in the programs. If certain criteria's are met the Company is committed to give the participant a maximum of two HMS shares for every share saved by the employee. As of June 30, 2015 the total number of shares saved amounted to approximately 50,000.
The Parent Company's operations are primarily focused on Groupwide management and financing. Apart from the Group's CEO, the Parent Company has no employees. The operating profit for the first nine months 2015 amounted to SEK 0 m (0). Cash and cash equivalents amounted to SEK 0.3 m (0.2) and borrowing amounted to SEK 0 m (0).
Energy
Life-Science
GROWTH STRATEGY – HMS's main focus is on organic growth. Expansion on existing markets will be through improved and ex tended product ranges, new technology, high level of service and new sales channels. A certain degree of growth can be through the selective acquisition of businesses that will be a valuable complement to the company's organic growth strategy.
DEVELOPMENT STRATEGY – The Company's core expertise is made up of an extensive understanding of industrial network com munication. Based on this competence in combination with an ex tensive network of customers, suppliers and external partners the existing and new product offers and solutions are developed for the best possible customer benefits.
PRODUCT STRATEGY — HMS markets four product lines, which to a certain degree are based on a common technical platform:
PRODUKTION STRATEGY – HMS maintains an in-house lowvolume production of Anybus products in Halmstad. Volume production takes place in close partnership with subcontractors in Europe and Asia in order to achieve flexible costs and to make use of economies of scale.
MARKETING STRATEGY – The Anybus network interface cards are marketed and sold to players in industrial and infrastructure automation and Anybus Gateways to system integrators, machine manufacturers and end-users in industrial and infrastructure auto mation. IXXAT communication platforms are marketed and sold to machine builders of industrial applications, medical equipment and the automotive industry. Netbiter products are marketed and sold to a wide range of customers, from device manufacturers to owners of installations in need of remote management.
SALES STRATEGY – Sales take place via the company's sales offices on defined key markets in 10 countries. Sales on the company's other markets, in some 50 countries, takes place via agents/ distributors.
HMS has designed its business models to fit each market and prod uct line. For the Embedded market, most business is via framework agreements (i.e. design-wins). The sales cycle is relatively long and the design phase is performed in close cooperation with the cus tomer. After that, there is steady revenue over a long period of time. For Gateways and Remote Management, the business model is more traditional, with a short business cycle and manufacturing based on customer orders. IXXAT uses a mix of the above mentioned business models.
Manufacturing
This report has been prepared in accordance with International Financial Reporting Standards (IFRS) and IAS 34, for Interim Reporting. Amendments to existing standards, new interpretations and new standards that came into effect as of January 1, 2015 did not affect the Groups reporting as of September 30, 2015.
HMS continues to apply the same accounting principles and valuation methods as those described in the most recent Annual Report. The parent company report is prepared in accordance with RFR 2, accounting for legal entities, and the Swedish Annual Accounts Act and accounting principles and the valuation methods as those described in the most recent Annual Report.
The HMS Group is exposed to business and financial risks through its operations. These risks have been described at length in the Company's annual report 2014. In addition to the risks described in these documents, no additional significant risks have been identified.
In accordance with principles adopted at HMS 2015 annual general meeting, the following persons have been assigned to be a part of the Nomination Committee: Jan Svensson, Investment AB Latour, representing 27 % of the shares, Staffan Dahlström representing 14 % of the shares, Evert Carlsson, Swedbank Robur Fonder AB representing 10 % of the shares and Urban Jansson, Chairman of the Board. The Nomination Committee has appointed Jan Svensson as its Chairman.
Shareholders who wish to present proposals to HMS's Nomination Committee may do so by e-mail to: [email protected] or in writing to: HMS Networks AB, Investors Relations, Att: Nomination Committee, Box 4126, SE 300 04 Halmstad, Sweden no later than February 1, 2016.
Halmstad, October 28, 2015
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
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, 2015.
We have reviewed the condensed interim financial information (interim report) of HMS Networks AB (publ) as of 30 September 2015 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Halmstad, 28 October 2015 Öhrlings PricewaterhouseCoopers AB
Fredrik Göransson Authorized Public Accountant
| Q3 2015 |
Q3 2014 |
Q1-Q3 2015 |
Q1-Q3 2014 |
Q1-Q4 2014 |
1410-1509 12 months |
|
|---|---|---|---|---|---|---|
| Net increase in revenue (%) | 18.1 | 8.8 | 21.6 | 15.3 | 17.6 | 22.2 |
| Gross margin (%) | 59.9 | 63.0 | 61.5 | 62.4 | 62.3 | 61.6 |
| Operating margin EBIT (%) | 17.3 | 24.4 | 16.5 | 18.4 | 16.6 | 15.4 |
| EBITDA (SEK t) | 39,899 | 44,101 | 112,585 | 100,169 | 125,955 | 138,371 |
| EBITDA (%) | 22.2 | 29.0 | 21.4 | 23.1 | 21.4 | 20.3 |
| Return on capital empolyed (%) | 4.7 | 5.6 | 13.0 | 12.2 | 15.0 | 15.8 |
| Return on total equity (%) | 17.9 | 26.0 | 17.2 | 18.2 | 15.8 | 15.3 |
| Working capital in relation to sales (%)* | 7.0 | 8.0 | 7.0 | 8.0 | 6.1 | 7.0 |
| Capital turnover rate | 0.86 | 0.75 | 0.84 | 0.72 | 0.74 | 0.82 |
| Debt/equity ratio | 0.43 | 0.57 | 0.43 | 0.57 | 0.54 | 0.43 |
| Equity/assets ratio (%) | 54.1 | 49.9 | 54.1 | 49.9 | 50.8 | 54.1 |
| Capital expenditure in property, plant and equipm (SEK 000s) | 884 | 680 | 4,027 | 2,170 | 6,037 | 7,894 |
| Capital expenditure in intagible fixed assets (SEK 000s) | 3,981 | 7,994 | 12,396 | 23,869 | 31,773 | 20,301 |
| Depreciation of property, plant and equipment (SEK 000s) | -2,017 | -1,826 | -6,070 | -5,508 | -7,453 | -8,015 |
| Amortisation of intangible fixed assetes (SEK 000s) | -6,799 | -5,124 | -19,383 | -15,057 | -20,920 | -25,246 |
| Number of employees (average) | 359 | 351 | 359 | 352 | 352 | 357 |
| Revenue per employees (SEK m)* | 1.9 | 1.6 | 1.9 | 1.6 | 1.7 | 1.9 |
| Equity per share, SEK | 40.28 | 36.19 | 38.86 | 24.82 | 35.43 | 28.24 |
| Cash flow from operations per share, SEK | 3.13 | 2.56 | 6.37 | 5.94 | 8.26 | 8.69 |
| Total number of share, average, thousands | 11,322 | 11,322 | 11,322 | 11,322 | 11,322 | 11,322 |
| Holding of own shares, average, thousands | 31 | 31 | 31 | 31 | 31 | 31 |
| Total outstanding shares, average, thousands | 11,291 | 11,291 | 11,291 | 11,291 | 11,291 | 11,291 |
* The key ratio has been translated into 12 months rolling value when applicable.
| (SEK 000s) | Q3 2015 |
Q3 2014 |
Q1-Q3 2015 |
Q1-Q3 2014 |
Q1-Q4 2014 |
1410-1509 12 months |
|---|---|---|---|---|---|---|
| Revenue | 179,835 | 152,316 | 526,602 | 432,894 | 589,212 | 682,919 |
| Cost of goods and services sold | -72,094 | -56,325 | -202,837 | -162,915 | -222,366 | -262,288 |
| Gross profit | 107,742 | 95,991 | 323,765 | 269,979 | 366,846 | 420,632 |
| Sales and marketing costs | -38,054 | -32,053 | -115,975 | -96,671 | -138,766 | -158,069 |
| Administrative expenses | -14,141 | -11,360 | -45,102 | -38,957 | -53,750 | -59,894 |
| Research and development costs | -26,141 | -17,784 | -77,258 | -61,291 | -85,052 | -101,019 |
| Other operating income | 2,892 | 2,792 | 8,321 | 6,981 | 9,809 | 11,149 |
| Other costs | -1,215 | -436 | -6,607 | -436 | -1,506 | -7,677 |
| Operating profit | 31,083 | 37,150 | 87,144 | 79,605 | 97,582 | 105,121 |
| Financial income | 1 | 0 | 1 | 0 | 37 | 38 |
| Financial costs | -4,725 | -3,686 | -11,497 | -9,558 | -11,809 | -13,748 |
| Profit before tax | 26,359 | 33,465 | 75,648 | 70,047 | 85,811 | 91,412 |
| Tax | -6,590 | -7,687 | -18,912 | -16,111 | -22,713 | -25,514 |
| Profit for the period | 19,769 | 25,778 | 56,736 | 53,936 | 63,098 | 65,899 |
| Basic earnings per share, SEK | 1.75 | 2.28 | 5.01 | 4.77 | 5.59 | 6.26 |
| (SEK 000s) | Q3 2015 |
Q3 2014 |
Q1-Q3 2015 |
Q1-Q3 2014 |
Q1-Q4 2014 |
1410-1509 12 months |
|---|---|---|---|---|---|---|
| Profit for the period | 19,769 | 25,778 | 56,736 | 53,936 | 63,098 | 65,899 |
| Other comprehensive income | ||||||
| Items that may be reclassified subsequently to income statement |
||||||
| Cash flow hedges | -237 | -836 | 1,319 | -1,790 | -2,720 | 389 |
| Translation differences | 6,685 | -856 | -2,469 | 7,181 | 18,395 | 8,745 |
| Hedging of net investments | -3,686 | 965 | 4,960 | -5,238 | -13,029 | -2,831 |
| Income tax relating to components of other comprehensive income |
863 | -28 | -1,381 | 1,546 | 3,465 | 538 |
| Other comprehensive income for the period, net of tax | 3,625 | -755 | 2,429 | 1,699 | 6,111 | 6,841 |
| Total comprehensive income for the period | 23,394 | 25,023 | 59,165 | 55,635 | 69,209 | 72,740 |
| (SEK 000s) | Sep 30 2015 | Sep 30 2014 | Dec 31 2014 |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 398,959 | 394,972 | 400,752 |
| Other intangible assets | 248,492 | 249,940 | 257,078 |
| Property, plant and equipment | 16,399 | 16,420 | 18,520 |
| Deferred tax assets | 424 | 805 | 1,328 |
| Other long term receivables | 1,739 | 0 | 1,498 |
| Total fixed assets | 666,013 | 662,137 | 679,176 |
| Inventories | 58,601 | 46,092 | 53,953 |
| Trade and other receivables | 81,258 | 66,937 | 69,494 |
| Other current receivables | 15,980 | 19,158 | 12,089 |
| Cash and cash equivalents | 19,136 | 23,921 | 17,629 |
| Total current assets | 174,975 | 156,108 | 153,165 |
| TOTAL ASSETS | 840,988 | 818,245 | 832,341 |
| EQUITY AND LIABILITIES | |||
| Equity | 454,864 | 408,680 | 422,599 |
| Liabilities | |||
| Non-current liabilities | 172,654 | 202,279 | 204,891 |
| Deffered income tax liabilities | 67,711 | 65,944 | 65,115 |
| Total non-current liabilities | 240,365 | 268,223 | 270,006 |
| Interest-bearing current liabilities | 40,082 | 54,185 | 40,497 |
| Trade payables | 45,715 | 37,991 | 40,695 |
| Other current liabilities | 59,962 | 49,166 | 58,544 |
| Total current liabilities | 145,759 | 141,342 | 139,736 |
| TOTAL EQUITY AND LIABILITIES | 840,988 | 818,245 | 832,341 |
| (SEK 000s) | Q3 2015 |
Q3 2014 |
Q1-Q3 2015 |
Q1-Q3 2014 |
Q1-Q4 2014 |
1410-1509 12 months |
|---|---|---|---|---|---|---|
| Cash flow from operating activities before changes in working capital |
31,415 | 34,902 | 81,381 | 99,442 | 99,442 | 105,134 |
| Cash flow from changes in working capital | 4,112 | -6,008 | -9,264 | -8,673 | -6,187 | -6,778 |
| Cash flow from operating activities | 35,527 | 28,894 | 72,117 | 67,016 | 93,255 | 98,356 |
| Cash flow from investing activities | -4,313 | -6,781 | -16,116 | -24,146 | -37,982 | -29,952 |
| Cash flow from financing activities | -29,022 | -20,875 | -54,938 | -34,767 | -54,808 | -74,979 |
| Cash flow for the period | 2,192 | 1,238 | 1,063 | 8,103 | 465 | -6,575 |
| Cash and cash equivalents at beginning of the period | 16,594 | 22,683 | 17,629 | 15,818 | 15,818 | 23,921 |
| Translation differences in cash and cash equivalents | 350 | 0 | 444 | 0 | 1,346 | 1,790 |
| Cash and cash equivalents at end of period | 19,136 | 23,921 | 19,136 | 23,921 | 17,629 | 19,136 |
| Revenue per region (SEK 000s) |
Q3 2015 |
Q2 2015 |
Q1 2015 |
Q4 2014 |
Q3 2014 |
Q2 2014 |
Q1 2014 |
Q4 2013 |
Q3 2013 |
Q2 2013 |
Q1 2013 |
Q4 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | 109,576 | 104,637 | 104,580 | 99,014 | 97,567 | 90,601 | 91,628 | 78,378 | 89,455 | 82,481 | 69,182 | 52,971 |
| Americas | 38,898 | 37,248 | 39,999 | 33,123 | 30,157 | 27,519 | 27,291 | 26,359 | 30,592 | 26,439 | 22,480 | 19,686 |
| Asia | 31,362 | 34,629 | 25,672 | 24,181 | 24,592 | 23,330 | 20,207 | 21,021 | 19,920 | 19,285 | 15,553 | 14,608 |
| Income statement (SEK 000s) |
Q3 2015 |
Q2 2015 |
Q1 2015 |
Q4 2014 |
Q3 2014 |
Q2 2014 |
Q1 2014 |
Q4 2013 |
Q3 2013 |
Q2 2013 |
Q1 2013 |
Q4 2012 |
| Revenue | 179,835 | 176,515 | 170,251 | 156,318 | 152,316 | 141,451 | 139,127 | 125,758 | 139,967 | 128,205 | 107,215 | 87,265 |
| Gross profit | 107,742 | 109,854 | 106,168 | 96,867 | 95,991 | 87,618 | 86,369 | 80,056 | 88,704 | 79,709 | 65,446 | 50,269 |
| Gross margin | 59.9% | 62.2% | 62.4% | 62.0% | 63.0% | 61.9% | 62.1% | 63.7% | 63.4% | 62.2% | 61.0% | 57.6% |
| Operating profit | 31,083 | 24,178 | 31,884 | 17,977 | 37,150 | 20,928 | 21,527 | 13,443 | 32,226 | 27,260 | 13,745 | 6,248 |
| Operating margin | 17.3% | 13.7% | 18.7% | 11.5% | 24.4% | 14.8% | 15.5% | 10.7% | 23.0% | 21.3% | 12.8% | 7.2% |
| Profit before tax | 26,359 | 19,883 | 29,406 | 15,764 | 33,465 | 17,971 | 18,611 | 12,397 | 30,479 | 26,919 | 11,699 | 7,001 |
Sales by geographical area for the first nine months 2015 are presented in the graph to the right.
Embedded products reached 53 % (53) of the Group's total sales, IXXAT products 18 % (19), Gateway products 21 % (20) and Remote Management amounted to 3 % (3).
All product groups are based on a common technology platform and are marketed and sold in the common sales channels. Therefore, no complete segment reporting is disclosed.
| (SEK 000s) | Q3 2015 |
Q3 2014 |
Q1-Q3 2015 |
Q1-Q3 2014 |
Q1-Q4 2014 |
1410-1509 12 months |
|---|---|---|---|---|---|---|
| Revenue | 2,499 | 1,771 | 7,901 | 6,027 | 8,835 | 10,709 |
| Gross profit | 2,499 | 1,771 | 7,901 | 6,027 | 8,835 | 10,709 |
| Administrative expenses | -2,499 | -1,771 | -7,901 | -6,026 | -8,834 | -10,709 |
| Operating profit | 0 | 0 | 0 | 1 | 1 | 0 |
| Interest expense and similar income | 0 | 0 | 0 | -1 | -1 | 0 |
| Profit before tax | 0 | 0 | 0 | 0 | 0 | 0 |
| Tax | 0 | 0 | 0 | -2 | -48 | -47 |
| Profit of the period | 0 | 0 | 0 | -2 | -48 | -47 |
| (SEK 000s) | Sep 30 2015 | Sep 30 2014 | Dec 31 2014 |
|---|---|---|---|
| ASSETS | |||
| Financial fixed assets | 244,039 | 244,039 | 244,039 |
| Total financial fixed assets | 244,039 | 244,039 | 244,039 |
| Other receivables | 494 | 428 | 454 |
| Cash and cash equivalents | 322 | 243 | 192 |
| Total current assets | 816 | 670 | 646 |
| TOTAL ASSETS | 244,855 | 244,709 | 244,685 |
| EQUITY AND LIABILITIES | |||
| Equity | 90,249 | 118,524 | 118,477 |
| Untaxed reserves | 8 | 8 | 8 |
| Liabilities | |||
| Trade payables | 130 | 58 | 427 |
| Liabilities to Group companies | 151,865 | 124,153 | 122,888 |
| Other current liabilities | 2,603 | 1,966 | 2,885 |
| Total current liabilities | 154,598 | 126,177 | 126,200 |
| TOTAL EQUITY AND LIABILITIES | 244,855 | 244,709 | 244,685 |
Total assets less non interest bearing current liabilities and provisions, as well as total deferred tax liabilities.
Operating income in relation to total assets.
Operating income according to income statement excluding items affecting comparability.
Earnings before interest, taxes, depreciation and amortization.
Share of the profit after tax attributable to the parent company's shareholders in relation to the average number of outstanding shares.
Share of the profit after tax attributable to the parent company's shareholders in relation to the average number of outstanding shares with addition for the average number of shares that are added when converting the outstanding number of convertible securities and options.
Shareholders' equity in relation to total assets.
Long-term and current financial liabilities less financial assets.
Net debt in relation to shareholders' equity.
Number of registered shares less shares bought back, which are held by the company.
Operating income in relation to net sales.
Share of the profit after financial income in relation to the average capital employed.
Share of profit after tax attributable to the parent company's shareholders in relation to the average shareholders' equity.
Total equity attributable to the parent company's shareholders in relation to total outstanding shares by the end of the period.
Current assets less cash equivalents and current liabilities.
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 589 million SEK in 2014. HMS is listed on the NASDAQ OMX in Stockholm, category Mid Cap, Information Technology.
"In a world where all devices are intelligent and networked… HMS is the leader in making industrial devices and systems communicate – for a more productive and sustainable world.".
"We drive innovation in collaboration with partners and customers creating leading technologies, products and solutions bringing value to real-world challenges".
HMS Networks AB (publ) Org.Nr. 556661-8954 Box 4126 | 300 04 Halmstad | Sweden Tel: +46 35 172 900 Fax: +46 35 172 909 http://investors.hms.se
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