First nine months
- Net sales for the first nine months increased with 22 % reaching SEK 527 m (433), corresponding to a 11 % increase in local currencies
- Operating profit reached SEK 87 m (80), equal to a 17 % (18) operating margin
- Order intake for the first nine months increased with SEK 76 m to 524 m (488) corresponding to a 7 % increase in local currencies
- Cash flow from ongoing operations reached SEK 72 m (67)
- Net result after tax amounted to SEK 57 m (54) and result per share amounted to SEK 5.01 (4.76)
- Net sales for the last twelve months amounted to SEK 683 m (559) corresponding to a 13 % increase in local currencies
- Operating result for the last twelve months amounted to SEK 105 m (93) corresponding to a 15 % (17) operating margin
Third quarter
- Net sales for the third quarter reached SEK 180 m (152) corresponding to an 18 % increase
- Operating result reached SEK 31 m (37)
- Order intake during the third quarter was SEK 180 m (148)
Comment from the CEO
The positive development from the recent quarters continues and we can present another quarter with record sales - SEK 180 m. This means that we have had seven consequtive quarters with an unbroken sales increase.
A change in the product mix for the third quarter and a cost increase in our supply chain result in a somewhat weaker gross margin during the third quarter. Together with continuing intensive investments in product development and decreasing capitalization of development expenses, this results in a 17 % operating margin, which is lower than for the same period the previous year.
Our organic growth developed well during the first nine months, primarily driven by a good development of our Anybus products where both new product launches, and a solid, well-established customer base contributed to a good growth.
Central Europe and the Nordic region continues to develop well during the first nine months of the year. We can also see a positive trend in Italy where sales for the current year has developed very well. North America shows a relatively weak trend but the strong US currency raised reported sales. Sales in Asia, led by Japan and China developed well.
IXXAT INpact - the first product based on combined technology from both Anybus and IXXAT - was presented during the quarter. This is a network communication card for industrial PC applications, an area where IXXAT already provides a number of products for communication. This new product is developed using the HMS NP40 chip technology and opens up new application areas for our IXXAT products.
We continue to notice a substantial interest from IT companies intending to use HMS technology to bridge information from industrial machines to IT systems on the enterprise level, an expanding market in the area of Industrial Internet of Things (IIoT).
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".
Halmstad 2015-10-28
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
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, 2015.
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 589 million SEK in 2014. HMS is listed on the NASDAQ OMX in Stockholm, category Mid Cap, Information Technology.
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