Annual Report • Feb 5, 2016
Annual Report
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JANUARY - DECEMBER
{ HMS signs an agreement to acquire the Belgian company eWON SA.
With continued growth in the last quarter, we sum up 2015 with a turnover of 702 million SEK, a growth of 19% compared to the previous year. During 2015, we had a tailwind from the weakened Swedish krona but also in local currencies, we had double-digit growth rates. As usual, the fourth quarter brought high costs for HMS with a large number of marketing activities. Order intake for the final quarter was weaker than expected.
Furthermore, the continually reduced activation of the company's development costs had a negative effect on the results. Geographically, Germany, Scandinavia and Japan have shown steady growth during the year, while the US market has continued to be relatively weak.
Product-wise, all of our three product lines – Anybus, IXXAT and Netbiter – show good growth. We also see a continued strong growth in the number of new design wins in 2015. In total, we got 195 new design wins for our products during the year and the total number of active design wins now amounts to 1381, an increase of 12% compared to the previous year. Out of these, 1023 are in production while 358 are expected to go into production in the coming years.
The fact that we received a record number of new design wins during the year, shows that we have an attractive product offering and good prospects for continued growth.
The exciting work of launching new products for the Industrial Internet of Things (IIoT) was initiated in 2015. This has now resulted in the Anybus Wireless Bolt, OPC UA communication, EtherNet/IP Linking Devices and SG-gateways for smart energy grids.
These new products are focused on efficient data collection and data transfer within IIoT applications. The focus on IIoT during the year meant increased investments in sales, marketing and development.
Our efforts to improve efficiency and quality continue. This is seen in a stable gross margin for the year and continued good quality levels. As in previous years, we can conclude that our field returns are just below 200 ppm (0.02%) – This is world class!
In early February 2016, HMS signed an agreement to acquire the Belgian company eWON SA. eWON is market leading in the field of remote monitoring and remote control, and will significantly strengthen HMS' position in this field. The company has 58 employees and sales of approximately 140 million SEK with an operating margin of over 20%.
The products that eWON manufacture and market are a strong complement to our existing solution for remote management. Together, these products will become a competitive offer, where we now have a strong position as the leading provider of solutions for remote control and remote monitoring of industrial applications. Particularly gratifying is that the two entrepreneurs behind eWON have chosen to remain in the company and become major shareholders of HMS.
Our focus is to continue to drive growth with our product brands Anybus, Netbiter, IXXAT and the newly acquired eWON. We continue to work with our long-term growth strategy while retaining a balanced view of costs and new resources. In the long term, we believe that the market for industrial data communication and remote management will be an interesting growth area, and we continue to focus on our motto "HMS – Connecting Devices".
Staffan Dahlström, CEO, HMS Networks AB
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
|---|---|---|---|---|---|---|---|---|
| Quarterly data | 2015 | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 |
| Net sales (SEK m) | 175 | 180 | 177 | 170 | 156 | 152 | 141 | 139 |
| Order intake (SEK m) | 157 | 180 | 170 | 174 | 162 | 148 | 153 | 148 |
| Gross margin (%) | 60.5 | 59.9 | 62.2 | 62.4 | 62.0 | 63.0 | 61.9 | 62.1 |
| EBITDA (SEK m) | 23 | 40 | 33 | 40 | 26 | 44 | 28 | 28 |
| EBITDA (%) | 13.1 | 22.2 | 18.6 | 23.4 | 16.5 | 29.0 | 20.0 | 20.0 |
| Operating profit EBIT (SEK m) | 14 | 31 | 24 | 32 | 18 | 37 | 21 | 22 |
| Operating margin EBIT (%) | 8.2 | 17.3 | 13.7 | 18.7 | 11.5 | 24.4 | 14.8 | 15.5 |
| Return on capital (%) | 3.0 | 17.9 | 13.7 | 20.4 | 8.8 | 26.0 | 14.3 | 14.9 |
| Earnings per share (SEK) | 0.31 | 1.75 | 1.32 | 1.95 | 0.81 | 2.28 | 1.22 | 1.27 |
| Equity per share (SEK) | 40.34 | 40.28 | 38.18 | 39.18 | 37.43 | 36.19 | 33.95 | 34.75 |
| Cash flow for operating activities per share (SEK) | 1.54 | 3.15 | 2.56 | 0.72 | 2.32 | 2.56 | 2.57 | 0.81 |
Net sales for 2015 amounted to SEK 702 m (589) corresponding to a 19% increase. In total, the revaluation of the Swedish currency in relation to the major HMS currencies had a positive effect of SEK 51 m on net sales compared to the previous year. The order intake amounted to SEK 682 m (611).
Net sales for the fourth quarter 2015 totalled to SEK 175 m (156), corresponding to a 12 % increase compared to the same quarter the previous year. Changes in currency exchange rates compared to the corresponding quarter last year had a SEK 7 m positive effect on the sales volume.
Order intake decreased by SEK 5 m to SEK 157 m (162), of which SEK 155 m will be delivered during the upcoming twelve months.
Operating profit before depreciation EBITDA for 2015 totalled to SEK 136 m (126), equivalent to an operating margin EBITDA of 19 % (21). Operating result EBIT amounted to SEK 102 m (98) corresponding to a 15% (17) EBIT margin. Currency effects related to income and expenses had a SEK 23 m positive impact on the operating result compared to the previous 12 months. During the year expenses for research and development increased to SEK 103 m (85). Considering a decrease in capitalized development expenses to SEK 20 m (27) the increase in total development resources was SEK 11 m. The increase in total expenses during the year is mainly related to the Company's efforts to establish a position in the market for Industrial Internet of Things.
The operating profit before depreciation EBITDA for the fourth quarter 2015 totalled to SEK 23 m (26), corresponding to a 13 % (17) EBITDA margin. Operating result after depreciation EBIT totalled SEK 14 m (18) corresponding to an 8 % (12) EBIT margin. Changes in exchange rates related to income and expenses had a SEK 3 m positive impact compared to the same period the previous year. During the fourth quarter expenses for research and development increased to SEK 26 m (24). Capitalized development expenses was SEK 8 m (6) increasing total development resources with SEK 4 m.
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 two graphs above show operating result EBITDA and EBIT per quarter. The bars refer 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.
| Yearly data | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|---|
| Net sales (SEK m) | 702 | 589 | 501 | 382 | 384 | 345 | 245 | 317 |
| Order intake (SEK m) | 682 | 611 | 516 | 424 | 388 | 342 | 258 | 313 |
| Gross margin (%) | 61.2 | 62.3 | 62.6 | 60.1 | 60.6 | 60.2 | 58.4 | 57.4 |
| EBITDA (SEK m) | 136 | 126 | 105 | 75 | 82 | 93 | 39 | 93 |
| EBITDA (%) | 19.3 | 21.4 | 20.9 | 19.5 | 21.5 | 26.9 | 16.1 | 29.4 |
| Operating profit EBIT (SEK m) | 102 | 98 | 87 | 64 | 72 | 84 | 31 | 85 |
| Operating margin EBIT (%) | 14.5 | 16.6 | 17.3 | 16.7 | 18.8 | 24.2 | 12.7 | 26.9 |
| Return on capital (%) | 13.7 | 15.8 | 17.4 | 16.3 | 18.6 | 23.2 | 8.8 | 28.6 |
| Earnings per share (SEK) | 5.33 | 5.59 | 5.54 | 4.64 | 4.84 | 5.41 | 1.88 | 5.43 |
| Equity per share (SEK) | 38.88 | 35.43 | 31.82 | 30.21 | 26.77 | 25.30 | 21.25 | 20.91 |
| Cash flow for operating activities per share (SEK) | 7.97 | 8.36 | 7.92 | 7.27 | 3.96 | 6.71 | 2.89 | 6.52 |
| Change in Group Equity | ||
|---|---|---|
| (SEK 000s) | Dec 31 2015 | Dec 31 2014 |
| Balance at 1 January | 422,599 | 377,557 |
| Total comprehensive income for the period | 59,376 | 69,209 |
| Share related-payment | 1,737 | 1,238 |
| Dividends | -28,229 | -25,405 |
| Closing balance | 455,482 | 422,599 |
The Group's equity amounted to SEK 455 m (423). The total number of shares at the end of the period was 11,322,400. The Group's equity/assets ratio improved to 55 % (51). In connection with the share saving program initiated in 2013, 31,000 HMS own shares has been purchased as of December 31, 2015.
The tax charge for the year was SEK 27 m (23). The tax charge for the year was 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
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 net-investments are disclosed under the Company statement of comprehensive income. 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 year consist of 60 % in EURO, 25 % in USD, 7 % in Japanese Yen and 8 % in SEK and other currencies. Cost of goods sold consists of 73 % 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 during 2015 amounted to SEK 90 m (93).
The investments in tangible assets for the year totalled SEK 5 m (6). Investments in intangible assets for the year totalled SEK 20 m (32) and comprise to a material part capitalization of expenses related to the development of technology platforms. As several new technology platforms recently were completed a comparably smaller part of the Groups development expenses was capitalized during the year. Depreciation on capitalized development costs amounted to SEK 18 m (13) and write downs to SEK 0 m (2) during the year.
The acquisition of IXXAT in February 2013 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 year 2015 depreciation on the purchase price allocated to assets acquired was reflected with SEK 7 m 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 year 2015 the loan amounted to 21 m€.
At the end of the period the cash equivalents totalled SEK 20 m (18) and unutilized credit facilities SEK 30 m. The Group's net debt amounted to SEK 177 m (228). The group's long term debt is amortized with SEK 37 m annually. In total SEK 37 m (37) was amortized during 2015. 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.
After the balance sheet date HMS has entered into an agreement to acquire 100 % of the Belgian company eWON. The preliminary acquisition price amounts to EURO 30 m on a debt free basis of which EURO 10 m will be paid with a new issue of 382,317 shares in HMS Networks AB. The remaining part will be paid in cash. The acquisition is estimated to generate a SEK 223 m overvalue. The new issue of shares in accordance with the authorization from the 2015 Annual General Meeting to the Board of Directors is expected to create a 3.27% dilution. The acquired company will be included in the consolidated income statement and balance sheet of HMS as of February 1, 2016.
The Parent Company's operations are primarily focused on Group-wide management and financing. Apart from the Group's CEO, the Parent Company has no employees. The operating profit for the year 2015 amounted to SEK 0.3 m (0.0). Cash and cash equivalents amounted to SEK 0.3 m (0.2) and borrowing amounted to SEK 0.0 m (0.0).
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 five product lines, which to a certain degree are based on a common technical platform:
PRODUCTION 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 product line. For the Embedded market, most business is via framework agree ments (i.e. design-wins). The sales cycle is relatively long and the de sign phase is performed in close cooperation with the customer. 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 or ders. IXXAT uses a mix of the above mentioned business models.
Transport
Manufacturing
The HMS Group long term growth is supported by a continued inflow of design-wins, a broader product offering especially within the Gateway product family and Remote Management strengthened by the eWON product offer, 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 %.
In accordance with principles adopted at the 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 Charlotte Brogren, Chairman of the Board. The Nomination Committee has appointed Jan Svensson as its Chairman.
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 December 31, 2015 the total number of shares saved amounted to approximately 54,000.
The Board of Directors proposes a dividend to the amount of SEK 2.50 (2.50).
The HMS policy for dividend stipulates: The objective of the Board of Director´s is to propose a dividend of approximately 50 % of the profit after tax subject to the Company having a financial position allowing for freedom to action.
The Annual General Meeting will be held at the Company's head office on Thursday April 28, 2016 at 10.30 am. The 2015 Annual Report (in Swedish) will be available on the Company's homepage four weeks prior to the date of the Annual General Meeting. A printed version of the 2015 Annual Report can be ordered by sending name and address to [email protected].
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 December 31, 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.
Halmstad, February 5, 2016
Staffan Dahlström Chief Executive Officer
This Year-End Report has not been reviewed by the Company's auditor.
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 February 5, 2016.
| Q4 2015 |
Q4 2014 |
Q1-Q4 2015 |
Q1-Q4 2014 |
|
|---|---|---|---|---|
| Net increase in revenue (%) | 12.0 | 24.3 | 19.1 | 17.6 |
| Gross margin (%) | 60.5 | 62.0 | 61.2 | 62.3 |
| Operating margin EBIT (%) | 8.2 | 11.5 | 14.5 | 16.6 |
| EBITDA (SEK t) | 22,870 | 25,786 | 135,517 | 125,955 |
| EBITDA (%) | 13.1 | 16.5 | 19.3 | 21.4 |
| Return on capital employed (%) | 2.2 | 2.7 | 15.4 | 15.0 |
| Return on total equity (%) | 3.0 | 8.8 | 13.7 | 15.8 |
| Working capital in relation to sales (%)* | 5.8 | 6.1 | 5.8 | 6.1 |
| Capital turnover rate | 0.84 | 0.76 | 0.84 | 0.74 |
| Debt/equity ratio | 0.39 | 0.54 | 0.39 | 0.54 |
| Equity/assets ratio (%) | 54.9 | 50.8 | 54.9 | 50.8 |
| Capital expenditure in property, plant and equipm (SEK 000s) | 1,008 | 3,867 | 5,042 | 6,037 |
| Capital expenditure in intagible fixed assets (SEK 000s) | 8,008 | 9,797 | 20,404 | 31,773 |
| Depreciation of property, plant and equipment (SEK 000s) | -1,975 | -1,945 | -8,095 | -7,453 |
| Amortisation of intangible fixed assets (SEK 000s) | -6,454 | -5,863 | -25,838 | -20,920 |
| Number of employees (average) | 370 | 352 | 362 | 352 |
| Revenue per employees (SEK m)* | 1.9 | 1.7 | 1.9 | 1.7 |
| Equity per share, SEK | 40.34 | 37.43 | 38.88 | 35.43 |
| Cash flow from operating activities per share, SEK | 1.54 | 2.32 | 7.97 | 8.26 |
| Total number of share, average, thousands | 11,322 | 11,322 | 11,322 | 11,322 |
| Holding of own shares, average, thousands | 31 | 31 | 31 | 31 |
| Total outstanding shares, average, thousands | 11,291 | 11,291 | 11,291 | 11,291 |
*The key ratio has been translated into 12 months rolling value when applicable.
| (SEK 000s) | Q4 2015 |
Q4 2014 |
Q1-Q4 2015 |
Q1-Q4 2014 |
|---|---|---|---|---|
| Revenue | 175,074 | 156,318 | 701,676 | 589,212 |
| Cost of goods and services sold | -69,081 | -59,450 | -271,918 | -222,366 |
| Gross profit | 105,993 | 96,867 | 429,757 | 366,846 |
| Sales and marketing costs | -48,958 | -42,095 | -164,932 | -138,766 |
| Administrative expenses | -16,252 | -14,792 | -61,354 | -53,750 |
| Research and development costs | -25,859 | -23,761 | -103,116 | -85,052 |
| Other operating income | 205 | 2,828 | 8,526 | 9,809 |
| Other costs | -688 | -1,070 | -7,296 | -1,506 |
| Operating profit | 14,440 | 17,977 | 101,584 | 97,582 |
| Financial income | 1 | 37 | 2 | 37 |
| Financial costs | -2,528 | -2,251 | -14,025 | -11,809 |
| Profit before tax | 11,913 | 15,764 | 87,561 | 85,811 |
| Tax | -8,444 | -6,602 | -27,356 | -22,713 |
| Profit for the period | 3,469 | 9,162 | 60,205 | 63,098 |
| Basic earnings per share, SEK | 0.31 | 0.81 | 5.33 | 5.59 |
| (SEK 000s) | Q4 2015 |
Q4 2014 |
Q1-Q4 2015 |
Q1-Q4 2014 |
|---|---|---|---|---|
| Profit for the period | 3,469 | 9,162 | 60,205 | 63,098 |
| Other comprehensive income | ||||
| Items that may be reclassified subsequently to income statement | ||||
| Cash flow hedges | 468 | -930 | 1,787 | -2,720 |
| Translation differences | -8,775 | 11,214 | -11,244 | 18,395 |
| Hedging of net investments | 6,605 | -7,791 | 11,565 | -13,029 |
| Income tax relating to components of other comprehensive income |
-1,556 | 1,919 | -2,937 | 3,465 |
| Other comprehensive income for the period, net of tax | -3,259 | 4,412 | -830 | 6,111 |
| Total comprehensive income for the period | 210 | 13,574 | 59,376 | 69,209 |
| (SEK 000s) | Dec 31 2015 | Dec 31 2014 |
|---|---|---|
| ASSETS | ||
| Goodwill | 394,167 | 400,752 |
| Other intangible assets | 245,835 | 257,078 |
| Property, plant and equipment | 15,300 | 18,520 |
| Deferred tax assets | 2,779 | 1,328 |
| Other long term receivables | 1,723 | 1,498 |
| Total fixed assets | 659,804 | 679,176 |
| Inventories | 55,810 | 53,953 |
| Trade and other receivables | 81,973 | 69,494 |
| Other current receivables | 13,313 | 12,089 |
| Cash and cash equivalents | 19,503 | 17,629 |
| Total current assets | 170,599 | 153,165 |
| TOTAL ASSETS | 830,403 | 832,341 |
| EQUITY AND LIABILITIES | ||
| Equity | 455,482 | 422,599 |
| Liabilities | ||
| Non-current liabilities | 157,926 | 204,891 |
| Deffered income tax liabilities | 71,782 | 65,115 |
| Total non-current liabilities | 229,708 | 270,006 |
| Interest-bearing current liabilities | 38,975 | 40,497 |
| Trade payables | 44,704 | 40,695 |
| Other current liabilities | 61,534 | 58,544 |
| Total current liabilities | 145,213 | 139,736 |
| TOTAL EQUITY AND LIABILITIES | 830,403 | 832,341 |
| (SEK 000s) | Q4 2015 |
Q4 2014 |
Q1-Q4 2015 |
Q1-Q4 2014 |
|---|---|---|---|---|
| Cash flow from operating activities before changes in working capital |
14,948 | 24,382 | 96,808 | 99,442 |
| Cash flow from changes in working capital | 2,468 | 3,033 | -6,796 | -6,187 |
| Cash flow from operating activities | 17,416 | 27,415 | 90,012 | 93,255 |
| Cash flow from investing activities | -8,803 | -13,664 | -25,398 | -37,982 |
| Cash flow from financing activities | -7,934 | -20,043 | -62,872 | -54,808 |
| Cash flow for the period | 679 | -6,292 | 1,742 | 465 |
| Cash and cash equivalents at beginning of the period | 19,136 | 23,921 | 17,629 | 15,818 |
| Translation differences in cash and cash equivalents | -312 | 0 | 132 | 1,346 |
| Cash and cash equivalents at end of period | 19,503 | 17,629 | 19,503 | 17,629 |
| Revenue per region (SEK 000s) |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Q1 2015 |
Q4 2014 |
Q3 2014 |
Q2 2014 |
Q1 2014 |
Q4 2013 |
Q3 2013 |
Q2 2013 |
Q1 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | 99,757 | 109,576 | 104,637 | 104,580 | 99,014 | 97,567 | 90,601 | 91,628 | 78,378 | 89,455 | 82,481 | 69,182 |
| Americas | 40,938 | 38,898 | 37,248 | 39,999 | 33,123 | 30,157 | 27,519 | 27,291 | 26,359 | 30,592 | 26,439 | 22,480 |
| Asia | 34,379 | 31,362 | 34,629 | 25,672 | 24,181 | 24,592 | 23,330 | 20,207 | 21,021 | 19,920 | 19,285 | 15,553 |
| Income statement (SEK 000s) |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Q1 2015 |
Q4 2014 |
Q3 2014 |
Q2 2014 |
Q1 2014 |
Q4 2013 |
Q3 2013 |
Q2 2013 |
Q1 2013 |
| Revenue | 175,074 | 179,835 | 176,515 | 170,251 | 156,318 | 152,316 | 141,451 | 139,127 | 125,758 | 139,967 | 128,205 | 107,215 |
| Gross profit | 105,993 | 107,742 | 109,854 | 106,168 | 96,867 | 95,991 | 87,618 | 86,369 | 80,056 | 88,704 | 79,709 | 65,446 |
| Gross margin | 60.5% | 59.9% | 62.2% | 62.4% | 62.0% | 63.0% | 61.9% | 62.1% | 63.7% | 63.4% | 62.2% | 61.0% |
| Operating profit EBIT | 14,440 | 31,083 | 24,178 | 31,884 | 17,977 | 37,150 | 20,928 | 21,527 | 13,443 | 32,226 | 27,260 | 13,745 |
| Operating margin EBIT | 8.2% | 17.3% | 13.7% | 18.7% | 11.5% | 24.4% | 14.8% | 15.5% | 10.7% | 23.0% | 21.3% | 12.8% |
| Profit before tax | 11,913 | 26,359 | 19,883 | 29,406 | 15,764 | 33,465 | 17,971 | 18,611 | 12,397 | 30,479 | 26,919 | 11,699 |
Sales by geographical area for the year 2015 are presented in the graph to the right.
Embedded products reached 50 % (52) of the Group's total sales, Gateway products 21 % (20), IXXAT products 20 % (19), 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) | Q4 2015 |
Q4 2014 |
Q1-Q4 2015 |
Q1-Q4 2014 |
|---|---|---|---|---|
| Revenue | 4,031 | 2,808 | 11,933 | 8,835 |
| Gross profit | 4,031 | 2,808 | 11,933 | 8,835 |
| Administrative expenses | -3,704 | -2,808 | -11,606 | -8,834 |
| Operating profit | 327 | 0 | 327 | 1 |
| Interest expense and similar income | 0 | 0 | 0 | -1 |
| Profit before tax | 327 | 0 | 327 | 0 |
| Appropriations | 8 | 0 | 8 | 0 |
| Tax | -141 | -47 | -141 | -48 |
| Profit of the period | 194 | -47 | 194 | -48 |
| (SEK 000s) | Dec 31 2015 | Dec 31 2014 |
|---|---|---|
| ASSETS | ||
| Financial fixed assets | 244,039 | 244,039 |
| Total financial fixed assets | 244,039 | 244,039 |
| Other receivables | 600 | 454 |
| Cash and cash equivalents | 276 | 192 |
| Total current assets | 876 | 646 |
| TOTAL ASSETS | 244,915 | 244,685 |
| EQUITY AND LIABILITIES | ||
| Equity | 90,443 | 118,477 |
| Untaxed reserves | 0 | 8 |
| Liabilities | ||
| Trade payables | 667 | 427 |
| Liabilities to Group companies | 149,890 | 122,888 |
| Other current liabilities | 3,915 | 2,885 |
| Total current liabilities | 154,472 | 126,200 |
| TOTAL EQUITY AND LIABILITIES | 244,915 | 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 370 people and reported sales of 702 million SEK in 2015. 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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