HMS Networks: Interim report January - September 2013


First nine months

  * Net sales for the first nine months increased with 27 % reaching SEK 375 m
    (295), corresponding to a 33 % increase in local currencies
  * Operating profit reached SEK 73 m (57), equal to a 20 % (20) operating
    margin
  * Order intake for the first nine months increased to SEK 384 m (325)
    corresponding to a 23 % increase in local currencies
  * Cash flow from operating activities amounted to SEK 65 m (63)
  * Profit after taxes totaled SEK 53 m (42) and result per share amounted to
    SEK 4.70 (3.78)
  * During the period the acquired IXXAT Automation GmbH contributed to group
    net sales with SEK 78 m. The contribution to operating profit was SEK 8 m.
  * Net sales for the last twelve months amounted to SEK 463 m (389)
    corresponding to a 24 % increase in local currencies. Operating result
    amounted to SEK 79 m (67) corresponding to a 17 % (17) operating margin

Third quarter
  * Net sales for the third quarter reached SEK 140 m (99) corresponding to a
    41 % increase. Operating result reached SEK 32 m (23)
  * Order intake during the third quarter was SEK 125 m (95)


Comments from the CEO

The quarter saw new record levels for HMS, both in terms of turnover and profit.
We  have begun to see  increased market stability, but  we have yet to see clear
improvements  when it comes to market demand. Consequently, the order intake for
the  quarter is not quite up to  our expectations. Our Anybus® Embedded products
continue  to deliver and in Q3, we have  seen an improvement in IXXAT sales. Our
new  Netbiter® Remote Management  brand continues to  generate a lot of interest
from the market but we have continued weak growth in sales of this new product.
IXXAT  Automation, which was  acquired earlier this  year, performed well in the
third  quarter. We continue to see good opportunities for synergies in sales and
product  development in the coming years and  we are already seeing the positive
effects of our new joint sales organizations in North America and Central Europe
for our three brands Anybus , IXXAT and Netbiter.
As  previously reported,  local sales  in Japan  continue to  increase, but this
balanced  out by the weakened Japanese currency.  The German and the U.S. market
continue  to  be  cautious  but  our  customers  are  talking about improvement,
although it is hard to determine this time.
During  the third quarter,  we have maintained  a high production  quality and a
good  ability  to  deliver.  We  also  have  a  good  product  mix  and internal
improvement projects have contributed to an improved gross margin.
We  can conclude  that we  see stable  market conditions,  but there is still no
strong underlying growth in our markets.
We  are working  to balance  our long-term  growth strategy  with a conservative
approach  to costs. At present,  we see nothing which  changes our view that the
market  for industrial communication and remote  management will be growth areas
in the future.

Halmstad October 28, 2013

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. See
also: http://investors.hms.se


HMS  Industrial Networks (publ) 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 45 million EUR in 2012. HMS is
listed on the NASDAQ OMX in Stockholm.



[HUG#1738668]

Attachments

Q3 Report 2013.pdf