Quarterly Report • Apr 26, 2016
Quarterly Report
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INTERIM REPORT 2016 JANUARY - MARCH
During the first quarter 2016 we reached a new sales record of SEK 201 m and a growth of 18%. Behind these figures we have a substantial positive impact from the acquired Belgium company eWON SA but also a weaker than expected development development from HMS traditional operations. eWON develops and sells products for remote access and remote monitoring of industrial control systems to, for example machine manufacturers. The acquisition is an excellent complement to the HMS technology platforms for Remote Management as well as it contributes with a well established network of sales channels in Europe and USA.
For the traditional operations of HMS we saw a continuing cautious development of the market with a weak growth. In the quarter we can also report an unfavourable product mix to a few large customers resulting in a lower gross margin. This in combination with investments in new resources and the Industrial Internet of Things initiated during the previous year resulted in a weak start of 2016.
During the first quarter, we have started to coordinate the eWON sales and marketing resources with HMS existing organization for our three brands Anybus®, IXXAT® and eWON®. In the longer term there are also good opportunities to coordinate technology and development of the acquired business, which is expected to have a positive impact on future generations of products from HMS.
Our aim now is to achieve the full effect of the opportunities we see in the newly acquired operations and the recent investments in new resources.
Order intake also including eWON improved during the period compared to Q4 2015, but we did not quite reach the level reported for the same quarter in 2015. Including eWON, we can see an increasing order intake in the first quarter of 2016. However, the uncertainty we previously expressed, remains in our markets. We continue to see new design wins which strengthens our strong position in the market.
An increased strain from the amortization of intangible assets, costs related to the acquisition and investments in additional resources, primarily in sales and marketing, are affecting the profit for the first quarter.
The German and Japanese markets continue to develop strongly. For the US, we continue to see a mixed picture with a weak market and some delays in placing orders from some customers.
The product line Netbiter, which in the future will be a part of the eWON brand, is showing a sales increase of 40% in the first quarter, although from small volumes. With the strong products from eWON, we believe that this area of the HMS product offering will be able to develop even better in the future.
During the first quarter, we launched two interesting products within the Industrial Internet of Things (IIoT). Firstly, the Anybus .NET gateway which is an easy way to connect industrial control systems (OT) to IT systems via .NET. We also launched the Anybus SGgateway for Smart Grid applications, which enables communication between machines with high power consumption and systems for Smart Grid energy distribution.
Our focus is to drive growth within our three product brands. We continue to balance our long term growth strategy with a cautious approach to costs. In the long term, we believe that the market for industrial communication and remote monitoring will be an interesting growth area, and we continue to focus on our motto "HMS - Connecting Devices".
"Sales and marketing resources within eWON are now being coordinated with HMS's existing organization and in the longer term, we see opportunities to also coordinate technology and development."
Staffan Dahlström, VD, HMS Networks AB
| Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
|---|---|---|---|---|---|---|---|---|
| Quarterly data | 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 |
| Net sales (SEK m) | 201 | 175 | 180 | 177 | 170 | 156 | 152 | 141 |
| Order intake (SEK m) | 199 | 157 | 180 | 170 | 174 | 162 | 148 | 153 |
| Gross margin (%) | 59.2 | 60.5 | 59.9 | 62.2 | 62.4 | 62.0 | 63.0 | 61.9 |
| EBITDA (SEK m) | 30 | 23 | 40 | 33 | 40 | 26 | 44 | 28 |
| EBITDA (%) | 14.8 | 13.1 | 22.2 | 18.6 | 23.4 | 16.5 | 29.0 | 20.0 |
| Operating profit (SEK m) | 20 | 14 | 31 | 24 | 32 | 18 | 37 | 21 |
| Operating margin (%) | 10.1 | 8.2 | 17.3 | 13.7 | 18.7 | 11.5 | 24.4 | 14.8 |
| Return on capital (%) | 9.9 | 3.0 | 17.9 | 13.7 | 20.4 | 8.8 | 26.0 | 14.3 |
| Earnings per share (SEK) | 1.08 | 0.31 | 1.75 | 1.32 | 1.95 | 0.81 | 2.28 | 1.22 |
| Equity per share (SEK) | 48.39 | 40.34 | 40.28 | 38.18 | 39.18 | 37.43 | 36.19 | 33.95 |
| Cash flow for operating activities per share (SEK) | 0.44 | 1.54 | 3.15 | 2.56 | 0.72 | 2.32 | 2.56 | 2.57 |
Net sales for the last twelve months amounted to SEK 732 m (620) corresponding to a 18 % increase. In total, the depreciation of the Swedish currency in relation to the major HMS currencies had a positive effect on net sales by SEK 34 m compared to the previous twelvemonth period. Order intake for the twelve month period amounted to SEK 706 m (637).
Net sales for the first quarter 2016 was SEK 201 m (170), corresponding to a 18 % increase compared to the same quarter during the previous year. Currency effects had a SEK 0.3 m positive impact on net sales compared to the same quarter the previous year. During the first quarter the acquired company eWON contributed with SEK 28 m to net sales. Order intake for the first quarter increased by SEK 25 m to SEK 199 m (174), of which SEK 197 m (169) is expected to be delivered during the next twelve months.
Operating profit before depreciation EBITDA for the last twelve months totalled to SEK 125 m (138), equivalent to an operating margin EBITDA of 17 % (22). Operating result EBIT for the last twelve months amounted to SEK 90 m (108) corresponding to a 12% (17) EBIT margin. Currency effects related to income and expenses had a SEK 15 m positive impact on the operating result compared to the previous 12 months.
The operating profit before depreciation EBITDA for the first quarter 2016 totalled to SEK 30 m (40), corresponding to a 15 % (23) EBITDA margin. Operating result after depreciation EBIT for the first quarter totalled SEK 20 m (32) corresponding to an 10 % (19) EBIT margin. Changes in exchange rates related to income and expenses had a SEK 0.5 m positive impact compared to the same period the previous year. During the first quarter the acquired company, considering depreciation on allocated overvalues and acquisition expenses, had a SEK 7 m positive impact on the group operating result. The costs related to the acquisition amounted to SEK 3 m.
The Group's equity amounted to SEK 559 m (442). The total number of shares at the end of the year was 11,704,717. In the new issue carried out in connection with the acquisition of eWON 382,317 new shares in HMS Networks AB were issued, which increased equity by SEK 38,232 in share capital and SEK 93 m in share premium. The Group's equity/assets ratio amounted to 47 % (53). In connection with the share saving program initiated during 2013 the Company has acquired 31 000 of shares in HMS Networks AB up until March 31, 2016.
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.
The tax charge for the first quarter was SEK 5 m (7). 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) | Mar 31 2016 | Mar 31 2015 | Dec 31 2015 |
| Balance at 1 January | 455,482 | 422,599 | 422,599 |
| Total comprehensive income for the period | 9,285 | 19,278 | 59,376 |
| Issue of new shares | 93,285 | 0 | 0 |
| Share related-payment | 631 | 481 | 1,737 |
| Dividends | 0 | 0 | -28,229 |
| Closing balance | 558,683 | 442,357 | 455,482 |
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 quarter consist of 59 % in EURO, 25 % in USD, 8 % in Japanese Yen and 8 % in SEK and other currencies. Cost of goods sold consists of 71 % in EURO, 22 % in USD and 1 % in Japanese Yen. Operating expenses consists of 41 % in EURO, 13 % in USD, 3 % in Japanese Yen and 43 % in SEK and other currencies.
The Group applies a policy for currency hedging described in the annual report.
Cash flow from operating activities during the first quarter amounted to SEK 5 (8).
The investments in tangible assets for the first quarter totalled SEK 2 m (1). Investments in intangible assets totalled SEK 7 m (4) and comprise to a material part capitalization of expenses related to the development of technology platforms. Depreciation on capitalized development costs during the period amounted to SEK 5 m (4).
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. Estimated annual amortization of acquired overvalue amounts to about SEK 7 m.
The acquisition of eWON in February 2016 generated, according to the preliminary acquisition analysis, a SEK 232 m overvalue before tax, of which SEK 97 m is allocated on brand name and customers included in the acquisition. Amortization on overvalues acquired is estimated to SEK 1.5 m. Amortization on overvalues acquired was recognized with SEK 0.2 m during the first quarter 2016.
The acquisition of eWON was financed by issuing 382,317 shares in HMS Networks AB and by a bank loan of EUR 19 m. The loan is amortized with EUR 4 m annually and amounted to EUR 18 m at the end of the period.
In total SEK 18 m (9) was amortized during the first quarter 2016. At the end of the period the cash equivalents totalled SEK 48 m (13) and unutilized credit facilities SEK 30 m. The Group's net debt amounted to SEK 361 m (217).
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 quarter 2016 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).
On 5 February 2016, the Group acquired 100 percent of the share capital in the Belgian company, eWON SA. eWON was founded in 2001 and its head office is in Nivelles, Belgium. Along with the subsidiaries in USA and Japan, eWon offers communications products and services for remote access of industrial applications and controllers (PLC), data collection applications and cloud-based software.
The acquisition price amounted to EUR 29 m on a debt free basis, of which approximately EUR 10 m was paid by issuing 382,317 shares in the company and the remainder in cash. The acquisition was financed via a bank loan for EUR 19 m.
The acquisition generated consolidated goodwill of approximately SEK 232 m. The new issue of shares, which was in accordance with the authority of the Board to issue new shares granted by the 2015 AGM, had a dilutive effect of 3.27 %. The acquired company is included in the consolidated income statement and balance sheet for HMS as of 1 February 2016.
According to the preliminary acquisition analysis, the consideration, acquired net assets and goodwill amount to:
| Consideration: | SEK t |
|---|---|
| Cash and cash equivalents | 178,981 |
| Issued shares | 93,285 |
| Total consideration, preliminary | 272,266 |
| a result of the aquisition are: | Fair value, SEK t |
|---|---|
| Cash and cash equivalents | 26,783 |
| Accounts receivable and other recivables | 32,455 |
| Inventories | 19,253 |
| Property, plant and equipment | 21,551 |
| Intangible assets | |
| Customers | 15,045 |
| Brands | 81,675 |
| Deferred tax liabilities | -30,950 |
| Accounts payable and other liabilities | -30,228 |
| Borrowings | -28,971 |
| Deferred tax liabilities | -329 |
| Total identifiable net assets | 106,283 |
| Goodwill* | 165,982 |
| Aquired net assets | 272,266 |
*Goodwill is attributable to the employees and the high profitability of the acquired business. No portion of recognized goodwill is expected to be deductible for tax purposes.
Energy
Life-Science
Manufacturing
Transport
The HMS Group's 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, supple mentary technology platforms from IXXAT and eWON, a stronger customer focus and an expansion of the HMS sales channels accord ing to the existing strategy.
At present, the global market for HMS products is viewed as fluctu ating 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 num ber of shares amounted to 11,704,717 whereof 31 000 shares are held by the Company.
The Company has launched four 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 March 31, 2016 the total number of shares saved amounted to approximately 56,800.
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.
5
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 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 communication.
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 Sweden, Germany, Baltics, Czech, France and Thailand) 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. eWON and 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 and Control, 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, 2016 did not affect the Groups reporting as of March 31, 2016.
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 2015. In addition to the risks described in these documents, no additional significant risks have been identified.
Halmstad April 26, 2016
Staffan Dahlström Chief Executive Officer
This interim 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 April 26, 2016.
| Q1 2016 |
Q1 2015 |
Q1-Q4 2015 |
1504-1603 12 months |
|
|---|---|---|---|---|
| Net increase in revenue (%) | 18.1 | 22.4 | 19.1 | 18.1 |
| Gross margin (%) | 59.2 | 62.4 | 61.2 | 60.4 |
| Operating margin EBIT (%) | 10.1 | 18.7 | 14.5 | 12.3 |
| EBITDA (SEK t) | 29,763 | 39,885 | 135,517 | 125,395 |
| EBITDA (%) | 14.8 | 23.4 | 19.3 | 17.1 |
| Return on capital empolyed (%) | 2.5 | 4.8 | 15.4 | 11.0 |
| Return on total equity (%) | 9.9 | 20.4 | 13.7 | 10.1 |
| Working capital in relation to sales (%)* | 9.4 | 8.3 | 5.8 | 9.4 |
| Capital turnover rate | 0.80 | 0.82 | 0.84 | 0.73 |
| Debt/equity ratio | 0.65 | 0.49 | 0.39 | 0.65 |
| Equity/assets ratio (%) | 47.1 | 53.0 | 54.9 | 47.1 |
| Capital expenditure in property, plant and equipm (SEK 000s) | 1,630 | 1,052 | 5,042 | 5,621 |
| Capital expenditure in intagible fixed assets (SEK 000s) | 7,347 | 4,283 | 20,404 | 23,468 |
| Depreciation of property, plant and equipment (SEK 000s) | -2,322 | -2,012 | -8,095 | -8,404 |
| Amortization of intangible fixed assetes (SEK 000s)* | -7,066 | -5,989 | -25,838 | -26,915 |
| Number of employees (average) | 429 | 354 | 362 | 380 |
| Revenue per employees (SEK m)** | 1.7 | 1.8 | 1.9 | 1.9 |
| Equity per share, SEK | 48.39 | 39.18 | 38.88 | 44.08 |
| Cash flow from operations per share, SEK | 0.44 | 0.72 | 7.97 | 7.66 |
| Total number of share, average, thousands | 11,577 | 11,322 | 11,322 | 11,386 |
| Holding of own shares, average, thousands | 31 | 31 | 31 | 31 |
| Total outstanding shares, average, thousands | 11,546 | 11,291 | 11,291 | 11,355 |
*Includes amortization on allocated excess value in acquired subsidiaries.
**The key ratio has been translated into 12 months rolling value when applicable.
| (SEK 000s) | Q1 2016 |
Q1 2015 |
Q1-Q4 2015 |
1504-1603 12 months |
|---|---|---|---|---|
| Revenue | 201,073 | 170,251 | 701,676 | 732,498 |
| Cost of goods and services sold | -82,039 | -64,083 | -271,918 | -289,874 |
| Gross profit | 119,035 | 106,168 | 429,757 | 442,624 |
| Sales and marketing costs | -48,858 | -38,112 | -164,932 | -175,679 |
| Administrative expenses | -19,795 | -14,920 | -61,354 | -66,228 |
| Research and development costs | -29,187 | -23,477 | -103,116 | -108,827 |
| Other operating income | 0 | 4,757 | 1,230 | -3,526 |
| Other costs | -821 | -2,533 | 0 | 1,712 |
| Operating profit | 20,374 | 31,884 | 101,584 | 90,075 |
| Financial income | 17 | 0 | 2 | 19 |
| Financial costs | -3,237 | -2,478 | -14,025 | -14,785 |
| Profit before tax | 17,154 | 29,406 | 87,561 | 75,310 |
| Tax | -4,632 | -7,352 | -27,356 | -24,636 |
| Profit for the period | 12,523 | 22,055 | 60,205 | 50,673 |
| Basic earnings per share, SEK | 1.08 | 1.95 | 5.33 | 4.46 |
| (SEK 000s) | Q1 2016 |
Q1 2015 |
Q1-Q4 2015 |
1504-1603 12 months |
|---|---|---|---|---|
| Profit for the period | 12,523 | 22,055 | 60,205 | 50,673 |
| Other comprehensive income | ||||
| Items that may be reclassified subsequently to income statement |
||||
| Cash flow hedges | 282 | -637 | 1,787 | 2,706 |
| Hedging of net investments | -1,759 | 6,380 | 11,565 | 3,426 |
| Translation differences | -2,086 | -7,257 | -11,244 | -6,073 |
| Income tax relating to components of other comprehensive income |
325 | -1,263 | -2,937 | -1,349 |
| Other comprehensive income for the period, net of tax | -3,238 | -2,777 | -830 | -1,291 |
| Total comprehensive income for the period | 9,285 | 19,278 | 59,376 | 49,383 |
| (SEK 000s) | Mar 31 2016 | Mar 31 2015 | Dec 31 2015 |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 558,967 | 396,796 | 394,167 |
| Other intangible assets | 342,595 | 251,913 | 245,835 |
| Property, plant and equipment | 35,818 | 17,588 | 15,300 |
| Deferred tax assets | 506 | 496 | 3,239 |
| Other long term receivables | 1,837 | 2,005 | 1,723 |
| Total fixed assets | 939,723 | 668,798 | 660,264 |
| Inventories | 74,612 | 53,974 | 55,810 |
| Trade and other receivables | 106,873 | 84,436 | 81,973 |
| Other current receivables | 16,705 | 14,794 | 13,313 |
| Cash and cash equivalents | 47,652 | 12,500 | 19,503 |
| Total current assets | 245,842 | 165,704 | 170,599 |
| TOTAL ASSETS | 1,185,565 | 834,502 | 830,863 |
| EQUITY AND LIABILITIES | |||
| Equity | 558,683 | 442,357 | 455,482 |
| Liabilities | |||
| Non-current liabilities | 341,951 | 190,195 | 158,142 |
| Deffered income tax liabilities | 102,704 | 64,272 | 72,242 |
| Total non-current liabilities | 444,655 | 254,467 | 230,384 |
| Interest-bearing current liabilities | 66,291 | 39,582 | 38,759 |
| Trade payables | 47,686 | 36,416 | 44,704 |
| Other current liabilities | 68,250 | 61,680 | 61,534 |
| Total current liabilities | 182,227 | 137,678 | 144,997 |
| TOTAL EQUITY AND LIABILITIES | 1,185,565 | 834,502 | 830,863 |
| (SEK 000s) | Q1 2016 |
Q1 2015 |
Q1-Q4 2015 |
1504-1603 12 months |
|---|---|---|---|---|
| Cash flow from operating activities before changes in working capital |
14,658 | 29,549 | 96,808 | 81,917 |
| Cash flow from changes in working capital | -9,606 | -21,437 | -6,796 | 5,035 |
| Cash flow from operating activities | 5,052 | 8,112 | 90,012 | 86,952 |
| Cash flow from investing activities | -160,854 | -5,659 | -25,398 | -180,593 |
| Cash flow from financing activities | 183,805 | -8,127 | -62,872 | 129,060 |
| Cash flow for the period | 28,003 | -5,674 | 1,742 | 35,419 |
| Cash and cash equivalents at beginning of the period | 19,503 | 17,629 | 17,629 | 12,500 |
| Translation differences in cash and cash equivalents | 146 | 545 | 132 | -267 |
| Cash and cash equivalents at end of period | 47,652 | 12,500 | 19,503 | 47,652 |
*The impact on the Group's cash and cash equivalents related to the acquisition of eWON amounted to SEK -152 m in Q1 2016, net of eWON's liquid funds. Cash and cash equivalents in eWON amounted to SEK 27 m.
| Revenue per region (SEK 000s) |
Q1 2016 |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Q1 2015 |
Q4 2014 |
Q3 2014 |
Q2 2014 |
Q1 2014 |
Q4 2013 |
Q3 2013 |
Q2 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | 121,420 | 99,757 | 109,576 | 104,637 | 104,580 | 99,014 | 97,567 | 90,601 | 91,628 | 78,378 | 89,455 | 82,481 |
| Americas | 46,424 | 40,938 | 38,898 | 37,248 | 39,999 | 33,123 | 30,157 | 27,519 | 27,291 | 26,359 | 30,592 | 26,439 |
| Asia | 33,230 | 34,379 | 31,362 | 34,629 | 25,672 | 24,181 | 24,592 | 23,330 | 20,207 | 21,021 | 19,920 | 19,285 |
| Income statement (SEK 000s) |
Q1 2016 |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Q1 2015 |
Q4 2014 |
Q3 2014 |
Q2 2014 |
Q1 2014 |
Q4 2013 |
Q3 2013 |
Q2 2013 |
| Revenue | 201,073 | 175,074 | 179,835 | 176,515 | 170,251 | 156,318 | 152,316 | 141,451 | 139,127 | 125,758 | 139,967 | 128,205 |
| Gross profit | 119,035 | 105,993 | 107,742 | 109,854 | 106,168 | 96,867 | 95,991 | 87,618 | 86,369 | 80,056 | 88,704 | 79,709 |
| Gross margin | 59.2% | 60.5% | 59.9% | 62.2% | 62.4% | 62.0% | 63.0% | 61.9% | 62.1% | 63.7% | 63.4% | 62.2% |
| Operating profit | 20,374 | 14,440 | 31,083 | 24,178 | 31,884 | 17,977 | 37,150 | 20,928 | 21,527 | 13,443 | 32,226 | 27,260 |
| Operating margin | 10.1% | 8.2% | 17.3% | 13.7% | 18.7% | 11.5% | 24.4% | 14.8% | 15.5% | 10.7% | 23.0% | 21.3% |
| Profit before tax | 17,154 | 11,913 | 26,359 | 19,883 | 29,406 | 15,764 | 33,465 | 17,971 | 18,611 | 12,397 | 30,479 | 26,919 |
Sales by geographical area for the first quarter 2016 are presented in the graph to the right.
Embedded products reached 45 % (52) of the Group's total sales, IXXAT 15 % (19), Gateway products 18 % (20) and Remote Management amounted to 18 % (3), whereof eWON 14 %.
All product groups are based on a common technology platform and are marketed and sold in the common sales channels. Therefore, no complete segment follow-up is reported.
| (SEK 000s) | Q1 2016 |
Q1 2015 |
Q1-Q4 2015 |
1504-1603 12 months |
|---|---|---|---|---|
| Revenue | 4,053 | 2,236 | 11,933 | 13,749 |
| Gross profit | 4,053 | 2,236 | 11,933 | 13,749 |
| Administrative expenses | -4,055 | -2,236 | -11,606 | -13,424 |
| Operating profit | -2 | 0 | 327 | 325 |
| Interest expense and similar income | 0 | 0 | 0 | 0 |
| Profit before tax | -2, | 0 | 327 | 325 |
| Appropriations | 0 | 0 | 8 | 8 |
| Tax | 0 | 0 | -141 | -141 |
| Profit of the period | -2 | 0 | 194 | 192 |
| (SEK 000s) | Mar 31 2016 | Mar 31 2015 | Dec 31 2015 |
|---|---|---|---|
| ASSETS | |||
| Financial fixed assets | 337,468 | 244,039 | 244,039 |
| Total financial fixed assets | 337,468 | 244,039 | 244,039 |
| Other receivables | 1,300 | 1,230 | 600 |
| Cash and cash equivalents | 363 | 206 | 276 |
| Total current assets | 1,663 | 1,436 | 876 |
| TOTAL ASSETS | 339,131 | 245,475 | 244,915 |
| EQUITY AND LIABILITIES | |||
| Equity | 183,727 | 118,477 | 90,443 |
| Untaxed reserves | 0 | 8 | 0 |
| Liabilities | |||
| Trade payables | 212 | 48 | 667 |
| Liabilities to Group companies | 153,431 | 125,073 | 149,890 |
| Other current liabilities | 1,761 | 1,868 | 3,915 |
| Total current liabilities | 155,404 | 126,990 | 154,472 |
| TOTAL EQUITY AND LIABILITIES | 339,131 | 245,475 | 244,915 |
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 and remote management. Reported sales reached SEK 701 m in 2015. Development and manufacturing take place at the headquarters in Halmstad, Sweden, in Nivelles Belgium and in Weingarten, Germany. Local sales and support are handled by branch offices in China, Denmark, France, Belgium, Germany, India, Italy, Japan, UK, and USA. HMS employs over 430 people and develops and manufactures solutions for connecting automation devices and systems to industrial networks under the Anybus and IXXAT brand and products for remote management and control under the eWON and Netbiter brands. 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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