Quarterly Report • Oct 28, 2014
Quarterly Report
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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 solutions 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".
"HMS acquired a product line for wireless communication, an area we consider to be important for industrial applications in the future"
Staffan Dahlström, CEO, HMS Networks AB
| Quarterly data | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 |
|---|---|---|---|---|---|---|---|---|
| 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | 2012 | |
| Net sales (SEK m) | 152 | 141 | 139 | 126 | 140 | 128 | 107 | 87 |
| Order intake (SEK m)* | 148 | 153 | 148 | 132 | 125 | 140 | 119 | 100 |
| Operating profit (SEK m) | 37 | 21 | 22 | 13 | 32 | 27 | 14 | 6 |
| Gross margin (%) | 63.0 | 61.9 | 62.1 | 63.7 | 63.4 | 62.2 | 61.0 | 57.6 |
| Operating margin (%) | 24.4 | 14.8 | 15.5 | 10.7 | 23.0 | 21.3 | 12.8 | 7.2 |
| Return on capital (%) | 26.0 | 14.3 | 14.9 | 10.3 | 26.4 | 23.4 | 10.7 | 16.3 |
| Earnings per share (SEK) | 2.28 | 1.22 | 1.27 | 0.84 | 2.07 | 1.80 | 0.82 | 0.86 |
| Equity per share (SEK) | 36.17 | 33.93 | 34.73 | 33.42 | 32.28 | 30.41 | 31.18 | 30.21 |
| Cash flow for operating activities per share (SEK) | 2.56 | 2.57 | 0.81 | 2.18 | 2.81 | 1.40 | 1.52 | 1.67 |
* Information for Q1 and Q2 2014 has been adjusted in telation to information previously communicated with SEK -19 m for Q1 and SEK -17 m for Q2.
For more information see page 4.
Net sales for the last twelve months amounted to SEK 559 m (463) corresponding to a 21 % increase. In total the revaluation of the Swedish currency in relation to the major HMS currencies had a SEK 16 m positive impact on net sales compared to the previous twelve month period. The order intake for the last four quarters amounted to SEK 580 m (484).
Net sales for the first nine months amounted to SEK 433 m (375) corresponding to a 15 % increase. Adjusted for a SEK 16 m positive fluctuation in currencies the increase was 11 %. Order intake for the first nine months was SEK 448 m (384).
Net sales for the third quarter 2014 totalled to SEK 152 m (140), corresponding to a 9 % increase compared to the same quarter the previous year. Adjusted for a SEK 8 m positive currency effect the volume increase was 3 % in local currencies. Order intake increased with SEK 23 m to SEK 148 m (125), of which SEK 147 will be delivered during the upcoming twelve months. In local currencies order intake during the third quarter increased with 12 %.
Operating profit totalled to SEK 93 m (79) for the last four quarters, equivalent to an operating margin of 17 % (17). Currency effects had a SEK 5 m positive impact on the operating result compared to the previous year.
Operating profit for the first nine months amounted to SEK 80 m (73), corresponding to an 18 % (20) operating margin. Currency fluctuations compared to the same period the previous year had a SEK 5 m positive impact.
The operating profit for the third quarter 2014 totalled to SEK 37 m (32), corresponding to a 24 % (23) operating margin. On Group level changes in exchange rates had a SEK 3 m positive impact compared to the same period the previous year.
The Group's equity amounted to SEK 409 m (365). The total number of shares at the end of the year was 11,322,400. The Group's equity/assets ratio amounted to 50 % (47).
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 16 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 2014 | Sep 30 2013 | Dec 31 2013 |
|---|---|---|---|
| Balance at 1 January | 377,557 | 342,056 | 342,056 |
| Total comprehensive income for the period | 55,635 | 51,464 | 64,127 |
| Repurchase of own shares | 0 | -3,895 | -3,895 |
| Share-related payment | 894 | 543 | 744 |
| Dividends | -25,406 | -25,475 | -25,475 |
| Closing balance | 408,680 | 364,693 | 377,557 |
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 64 % in EURO, 23 % in USD, 7 % in Japanese Yen and 6 % in SEK and other currencies. Cost of goods sold consists of 71 % in EURO, 18 % in USD and 1 % in Japanese Yen. Operating expenses consists of 39 % in EURO, 9 % in USD, 3 % in Japanese Yen and 49 % 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 2014 amounted to SEK 67 m (65).
The investments in tangible assets for the nine month period totalled SEK 2 m (3). Investments in intangible assets for the period totalled SEK 22 m (40) 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 15 m (8) 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 2014 depreciation on purchase price allocated to assets acquired was reflected with SEK 5 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 period the loan amounted to 26 m€.
At the end of the period the cash equivalents totalled SEK 24 m (25) and unutilized credit facilities SEK 13 m. The Group's net debt amounted to SEK 233 m (244). The group's long term debt is amortized with SEK 36 m annually. During the first nine months 2014 SEK 27 m (17) was amortized. During the second quarter HMS distributed dividend payments to its shareholder equal to SEK 2.25 per share (2.25), in total SEK 26 m. Subsequent to the period ending September 30, 2014 HMS acquired a product line for wireless gateways from the Swiss company u-blox. The acquisition has no material impact on the company´s liquidity and financial position.
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 Small Cap list, in the Information Technology sector. The total number of shares amounted to 11,322,400 of which 24,939 shares are held by the company.
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 first nine months 2014 amounted to SEK 0 m (0). Cash and cash equivalents amounted to SEK 0.2 m (0.1) and borrowing amounted to SEK 0 m (0).
Growth strategy - HMS's main focus is on organic growth. Expansion on existing markets will be through improved and extended product ranges, new technology, high level of service and new sales channels. A certain degree of growth can be through the seletive 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 communication. Based on this competence in combination with an extensive 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:
Production strategy - HMS maintains an in-house low-volume 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 automation. 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 agreements (i.e. design-wins). The sales cycle is relatively long and the design 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 orders. IXXAT uses a mix of the above mentioned business models.
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, 2014 did not affect the Groups reporting as of September 30, 2014.
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 2013. In addition to the risks described in these documents, no additional significant risks have been identified.
In accordance with principles adopted at HMS 2014 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: valberedning@hms. se or in writing to: HMS Networks AB, Investors Relations, Att: Nomination Committee, Box 4126, SE 300 04 Halmstad, Sweden no later than February 1, 2015.
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
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.
We have reviewed this report for the period 1 January 2014 to 30 September 2014 for HMS Networks AB (publ). The board of directors and the CEO are responsible for the preparation and presentation of this interim report 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, October 28, 2014 PricewaterhouseCoopers AB
Fredrik Göransson Authorised Public Accountant
| Q3 2014 |
Q3 2013 |
Q1-Q3 2014 |
Q1-Q3 2013 |
Q1-Q4 2013 |
1310-1409 12 months |
|
|---|---|---|---|---|---|---|
| Net increase in revenue (%) | 8.8 | 41.2 | 15.3 | 27.4 | 31.3 | 20.7 |
| Gross margin (%) | 63.0 | 63.4 | 62.4 | 62.3 | 62.6 | 62.7 |
| Operating margin EBIT (%) | 24.4 | 23.0 | 18.4 | 19.5 | 17.3 | 16.7 |
| EBITDA (SEK t) | 44,101 | 37,137 | 100,252 | 87,007 | 104,759 | 117,851 |
| EBITDA (%) | 29.0 | 26.5 | 23.2 | 23.2 | 20.9 | 21.1 |
| Return on capital employed (%) | 6.2 | 5.5 | 13.1 | 20.9 | 18.4 | 15.5 |
| Return on total equity (%) | 26.0 | 26.5 | 18.2 | 20.0 | 17.4 | 16.4 |
| Working capital in relation to sales (%)* | -0.7 | 13.8 | -0.7 | 13.8 | 2.7 | -0.7 |
| Capital turnover rate | 0.75 | 0.72 | 0.75 | 0.72 | 0.84 | 0.70 |
| Debt/equity ratio | 0.57 | 0.55 | 0.57 | 0.55 | 0.59 | 0.57 |
| Equity/assets ratio (%) | 49.9 | 47.3 | 49.9 | 47.3 | 49.0 | 49.9 |
| Capital expenditure in property, plant and equipm, (SEK t) | 680 | 963 | 2,170 | 2,666 | 4,493 | 3,997 |
| Capital expenditure in intagible fixed assets (SEK t) | 5,982 | 9,423 | 21,857 | 39,944 | 52,609 | 34,523 |
| Depreciation of property, plant and equipment (SEK t) | -1,826 | -1,868 | -5,507 | -5,479 | -6,674 | -6,521 |
| Amortisation of intangible fixed assets (SEK t) | -5,124 | -3,042 | -15,057 | -8,296 | -11,438 | -18,199 |
| Number of employees (average) | 351 | 344 | 352 | 343 | 344 | 351 |
| Revenue per employee (SEK m) | 1.6 | 1.3 | 1.6 | 1.3 | 1.5 | 1.6 |
| Total equity per share, SEK | 36.17 | 32.28 | 34.80 | 31.23 | 31.81 | 34.23 |
| Cash flow from operations per share, SEK | 2.56 | 2.81 | 5.93 | 5.73 | 7.91 | 8.11 |
| Total number of shares, average, thousands | 11,322 | 11,322 | 11,322 | 11,322 | 11,322 | 11,322 |
| Holding of own shares, average, thousands | 25 | 25 | 25 | -8 | 12 | 25 |
| Total outstanding shares, average, thousands | 11,297 | 11,297 | 11,297 | 11,314 | 11,310 | 11,297 |
*The key ratio has been translated into trailing 12 month value when applicable.
| (SEK 000s) | Q3 2014 |
Q3 2013 |
Q1-Q3 2014 |
Q1-Q3 2013 |
Q1-Q4 2013 |
1310-1409 12 months |
|---|---|---|---|---|---|---|
| Revenue | 152,316 | 139,967 | 432,894 | 375,387 | 501,145 | 558,652 |
| Cost of goods and services sold | -56,325 | -51,262 | -162,915 | -141,527 | -187,229 | -208,617 |
| Gross profit | 95,991 | 88,704 | 269,979 | 233,859 | 313,916 | 350,035 |
| Sales and marketing costs | -32,053 | -30,124 | -96,671 | -91,546 | -128,346 | -133,471 |
| Administrative expenses | -11,360 | -10,777 | -38,957 | -34,882 | -48,442 | -52,517 |
| Research and development costs | -17,784 | -14,038 | -61,291 | -35,229 | -52,018 | -78,079 |
| Other operating income | 2,792 | 0 | 6,545 | 2,639 | 2,828 | 6,734 |
| Other costs | -436 | -1,539 | 0 | -1,610 | -1,290 | 320 |
| Operating profit | 37,150 | 32,226 | 79,605 | 73,232 | 86,647 | 93,021 |
| Financial income | 0 | 0 | 0 | 0 | 203 | 203 |
| Financial costs | -3,686 | -1,748 | -9,558 | -4,135 | -5,357 | -10,780 |
| Profit before tax | 33,465 | 30,479 | 70,047 | 69,097 | 81,494 | 82,443 |
| Tax | -7,687 | -7,010 | -16,111 | -15,893 | -18,744 | -18,962 |
| Profit for the period | 25,778 | 23,469 | 53,936 | 53,205 | 62,750 | 63,481 |
| Earnings per share, SEK | 2.28 | 2.07 | 4.76 | 4.70 | 5.54 | 5.61 |
| (SEK 000s) | Q3 2014 |
Q3 2013 |
Q1-Q3 2014 |
Q1-Q3 2013 |
Q1-Q4 2013 |
1310-1409 12 months |
|---|---|---|---|---|---|---|
| Profit for the period | 25,778 | 23,469 | 53,936 | 53,205 | 62,750 | 63,481 |
| Other comprehensive income | ||||||
| Items that may be reclassified subsequently to income statement |
||||||
| Cash flow hedges | -836 | 660 | -1,790 | -2,589 | -1,751 | -952 |
| Translation differences | -856 | -1,981 | 7,181 | 1,535 | 10,004 | 15,650 |
| Hedging of net investments | 965 | 2,596 | -5,238 | -1,611 | -9,309 | -12,936 |
| Income tax relating to components of other comprehensive income |
-28 | -716 | 1,546 | 924 | 2,433 | 3,055 |
| Other comprehensive income for the period, net of tax | -755 | 559 | 1,699 | -1,741 | 1,377 | 4,817 |
| Total comprehensive income for the period | 25,023 | 24,028 | 55,635 | 51,464 | 64,127 | 68,298 |
| (SEK 000s) | Sep 30 2014 | Sep 30 2013 | Dec 31 2013 |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 394,972 | 386,218 | 390,844 |
| Other intangible assets | 249,940 | 225,712 | 239,405 |
| Property, plant and equipment | 16,420 | 19,785 | 20,179 |
| Deffered tax assets | 805 | 715 | 724 |
| Total fixed assets | 662,137 | 632,430 | 651,152 |
| Inventories | 46,092 | 35,015 | 35,971 |
| Trade and other receivables | 66,937 | 61,543 | 53,985 |
| Other current receivables | 19,158 | 16,669 | 13,637 |
| Cash and cash equivalents | 23,921 | 25,011 | 15,818 |
| Total current assets | 156,108 | 138,238 | 119,411 |
| TOTAL ASSETS | 818,245 | 770,668 | 770,563 |
| EQUITY AND LIABILITIES | |||
| Equity | 408,680 | 364,693 | 377,557 |
| Liabilities | |||
| Non-current interest-bearing liabilities | 202,279 | 226,518 | 224,076 |
| Deferred income tax liabilities | 65,944 | 67,508 | 65,143 |
| Total non-current liabilities | 268,223 | 294,026 | 289,219 |
| Interest-bearing current liabilities | 54,185 | 42,761 | 35,772 |
| Trade payables | 37,991 | 28,986 | 28,342 |
| Other current liabilities | 49,166 | 40,202 | 39,673 |
| Total current liabilities | 141,342 | 111,949 | 103,787 |
| TOTAL EQUITY AND LIABILITIES | 818,245 | 770,668 | 770,563 |
| (SEK 000s) | Q3 2014 |
Q3 2013 |
Q1-Q3 2014 |
Q1-Q3 2013 |
Q1-Q4 2013 |
1310-1409 12 months |
|---|---|---|---|---|---|---|
| Cash flow from operating acitivites before changes in working capital |
34,902 | 35,535 | 75,689 | 63,661 | 85,268 | 97,296 |
| Cash flow from changes in working capital | -6,008 | -3,770 | -8,673 | 1,191 | 4,234 | -5,630 |
| Cash flow from operating activities | 28,894 | 31,765 | 67,016 | 64,852 | 89,502 | 91,666 |
| Cash flow from investing activities | -6,781 | -9,987 | -24,146 | -267,987 | -324,554 | -80,713 |
| Cash flow from financing activities | -20,875 | -25,226 | -34,767 | 196,659 | 219,383 | -12,043 |
| Cash flow for the period | 1,238 | -3,448 | 8,103 | -6,476 | -15,669 | -1,090 |
| Cash and cash equivalents at beginning of the period | 22,683 | 28,459 | 15,818 | 31,487 | 31,487 | 25,011 |
| Cash and cash equivalents at end of period | 23,921 | 25,011 | 23,921 | 25,011 | 15,818 | 23,921 |
| Revenue per region (SEK 000s) |
Q3 2014 |
Q2 2014 |
Q1 2014 |
Q4 2013 |
Q3 2013 |
Q2 2013 |
Q1 2013 |
Q4 2012 |
Q3 2012 |
Q2 2012 |
Q1 2012 |
Q4 2011 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | 97,567 | 90,601 | 91,628 | 78,378 | 89,455 | 82,481 | 69,182 | 52,971 | 60,049 | 59,169 | 60,387 | 55,876 |
| Americas | 30,157 | 27,519 | 27,291 | 26,359 | 30,592 | 26,439 | 22,480 | 19,686 | 22,687 | 20,813 | 20,429 | 20,330 |
| Asia | 24,592 | 23,330 | 20,207 | 21,021 | 19,920 | 19,285 | 15,553 | 14,608 | 16,408 | 18,920 | 15,677 | 18,642 |
| Income statement (SEK 000s) |
Q3 2014 |
Q2 2014 |
Q1 2014 |
Q4 2013 |
Q3 2013 |
Q2 2013 |
Q1 2013 |
Q4 2012 |
Q3 2012 |
Q2 2012 |
Q1 2012 |
Q4 2011 |
| Revenue | 152,316 | 141,451 | 139,127 | 125,758 | 139,967 | 128,205 | 107,215 | 87,265 | 99,144 | 98,902 | 96,493 | 94,848 |
| Gross profit | 95,991 | 87,618 | 86,369 | 80,056 | 88,704 | 79,709 | 65,446 | 50,269 | 59,382 | 59,953 | 59,766 | 57,686 |
| Gross margin | 63.0% | 61.9% | 62.1% | 63.7% | 63.4% | 62.2% | 61.0% | 57.6% | 59.9% | 60.6% | 61.9% | 60.8% |
| Operating profit | 37,150 | 20,928 | 21,527 | 13,443 | 32,226 | 27,260 | 13,745 | 6,248 | 23,186 | 19,953 | 14,338 | 9,925 |
| Operating margin | 24.4% | 14.8% | 15.5% | 10.7% | 23.0% | 21.3% | 12.8% | 7.2% | 23.4% | 20.2% | 14.9% | 10.5% |
| Profit before tax | 33,465 | 17,971 | 18,611 | 12,397 | 30,479 | 26,919 | 11,699 | 7,001 | 23,100 | 20,810 | 14,286 | 10,715 |
Sales by geographical area for the first nine months 2014 are presented in the graph to the right.
Embedded products reached 53 % (55) of the Group's total sales, IXXAT products 19 % (21), Gateway 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) | Q3 2014 |
Q3 2013 |
Q1-Q3 2014 |
Q1-Q3 2013 |
Q1-Q4 2013 |
1310-1409 12 months |
|---|---|---|---|---|---|---|
| Revenue | 1,771 | 1,590 | 6,027 | 5,651 | 7,845 | 8,221 |
| Cost of sales and services | 0 | 0 | 0 | 0 | 0 | 0 |
| Gross profit | 1,771 | 1,590 | 6,027 | 5,651 | 7,845 | 8,221 |
| Administrative expenses | -1,771 | -1,590 | -6,026 | -5,657 | -7,833 | -8,202 |
| Operating profit | 0 | 0 | 1 | -7 | 12 | 19 |
| Interest income, dividends and similar items | 0 | 50,000 | 0 | 50,007 | 50,009 | 2 |
| Interest expense and similar items | 0 | 0 | -1 | 0 | 0 | -1 |
| Profit before tax | 0 | 50,000 | 0 | 50,000 | 50,020 | 20 |
| Tax | 0 | 0 | -2 | 0 | -4 | -6 |
| Profit of the period | 0 | 50,000 | -2 | 50,000 | 50,016 | 14 |
| (SEK 000s) | Sep 30 2014 | Sep 30 2013 | Dec 31 2013 |
|---|---|---|---|
| ASSETS | |||
| Financial fixed assets | 244,039 | 244,039 | 244,039 |
| Total financial fixed assets | 244,039 | 244,039 | 244,039 |
| Other receivables | 428 | 371 | 247 |
| Cash and cash equivalents | 243 | 126 | 808 |
| Total current assets | 670 | 497 | 1,056 |
| TOTAL ASSETS | 244,709 | 244,536 | 245,095 |
| EQUITY AND LIABILITIES | |||
| Equity | 118,524 | 143,915 | 143,931 |
| Untaxed reserves | 8 | 8 | 8 |
| Liabilities | |||
| Trade payables | 58 | 24 | 535 |
| Liabilities to Group companies | 124,153 | 98,597 | 99,321 |
| Other current liabilities | 1,966 | 1,992 | 1,299 |
| Total current liabilities | 126,177 | 100,613 | 101,155 |
| TOTAL EQUITY AND LIABILITIES | 244,709 | 244,536 | 245,095 |
Total assets less non interest bearing current liabilities and provisions, as well as total deferred tax liabilities.
Operating income in relation to total assets.
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 including noncontrolling interests.
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 excluding non-controlling interests.
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 equiva-lents 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 58 million EUR in 2013. HMS is listed on the NASDAQ OMX in Stockholm.
"All industrial devices will be intelligent and networked. We shall be the market leading partner in the world of industrial communication".
"To create long term value for our customers, employees and investors".
"We provide reliable, flexible and easy-to-use communication and remote management solutions to the world of industrial communication".
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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