HMS Networks AB (publ) today holds its Annual General Meeting. In
addition to presenting significant events 2008, CEO Nicolas Hassbjer
comments on current market conditions and sales in the first quarter
2009.
As communicated in our Year-End report on February 6, 2009, we are
currently in a phase of decreasing volumes even though the underlying
market of automation traditionally is less affected than other
markets. "In a strong economy end customers are focusing on
automation to increase capacity and in an economic downturn customer
focus changes to increased automation in order to lower manufacturing
costs. There is usually a lag with decreasing volumes between those
periods. In the opinion of HMS management we are currently in such a
lag."
Preliminary figures on net sales for Q1 2009, show a decline of 15%
to approximately SEK 66 million (77.3), including positive currency
effects. Orders received are further affected by Customers
adjustments of inventory in several tiers and updated forecasts
reflecting the further weakening of the market conditions."In the first quarter we have seen a continued downturn in the
global market. My assessment is that the majority of our customers
now in the first quarter have adopted to the even weaker market
conditions. HMS has continued to win orders for customisation of our
technology that will affect our sales from 2010 and onwards.
Additionally HMS had a strong inflow on new design wins during the
end of 2008 that contributes to long term growth," says CEO Nicolas
Hassbjer.
All markets except China show a decline for HMS. Japan shows the
strongest decline as the automation industry is affected by both a
weak market and a strong currency. This explains, to large extent,
the decline in HMS volumes in the first quarter. The American market
shows a stabilisation with volumes slightly below the corresponding
period in 2008.
Complete Annual Report for 2008 and presentation from the AGM meeting
is available under "Reports & Presentations on
http://investors.hms.se. To request a printed version please send
address details to ir@hms.se.
For more information please contact:
Nicolas Hassbjer, Chief Executive Officer, HMS, phone: +46 35 17 29
02
Gunnar Högberg, Chief Financial Officer, HMS, phone: +46 35 17 29 95
Press pictures and background information for editorial use can be
downloaded under "Press" at http://investors.hms.se.
HMS Networks AB (publ) is a world-leading supplier of communication
technology for industrial automation. Sales for 2008 grew by 17% to
SEK 317 million. Over 90% of these sales were to customers located
outside Sweden. All development and the major portion of
manufacturing is carried out at the head office in Halmstad. Sales
offices are located in Japan, China, Germany, the USA, Italy and
France. HMS has 160 employees and produces network interface cards
and products to interconnect different networks under the trademark
Anybus®. The network interface cards are embedded in automation
equipment such as inverter drives, robots, control systems and
sensors. This allows subcomponents in machines to communicate with
one another and with different networks in order to build more
efficient and flexible automation systems with reduced energy
consumption.
In 2008 HMS was presented with Sweden's "Best export company" award
by H.M. the King of Sweden and HMS has had an average growth of 30%
year-on-year over the past ten years. HMS is listed on the NASDAQ OMX
Nordic Exchange in Stockholm in the Small Cap, Information Technology
sector.
