Sony Pixel Power calrec Sony

HMS Q4 Report 2019

04/02/2020

Fourth quarter

Net sales for the fourth quarter reached SEK 346 m (363), corresponding to a decrease of 5 %. Currency translations had a positive effect of SEK 15 m on net sales

Order intake was SEK 337 m (387), corresponding to a decrease of 13 %

Operating profit reached SEK 55 m (52) equal to a 15.9 % (14.3) operating margin

Operating profit, adjusted for settlement regarding agreed additional purchase price related to Beck IPC and restructur ing effect, amounted to SEK 33 m, corre sponding to an operating margin of 9.5%

The total tax for the quarter amounted to SEK +20 m, mainly related to retroactive tax reduction of SEK 28 m

Profit after taxes totalled SEK 67 m (42) and earnings per share was SEK 1.46 (0.90). Adjusted profit after tax totaled SEK 31 m and adjusted earnings per share was SEK 0.68 SEK

Cash flow from operating activities amounted to SEK 61 m (49)

Yearly

Net sales for the full year amounted to SEK 1,519 m (1,366), corresponding to an 11 % increase. Currency translations had a positive effect of SEK 73 m on net sales

Order intake was SEK 1,470 m (1,433), corresponding to an increase of 3 %

Operating profit was SEK 243 m (251), equal to a 16.0 % (18.4) operating margin

Operating profit, adjusted for restruc turing costs and settlement regard ing agreed additional purchase price, reached SEK 246 m equal to a 16.2 % operating margin

Profit after taxes totalled SEK 205 m (171) and earnings per share was SEK 4.43 (3.68). Adjusted profit after tax totalled SEK 188 m and adjusted earnings per share was SEK 4.06

Cash flow from operating activities amounted to SEK 254 m (193)

The Board of Directors propose a dividend to the amount of SEK 1.90 (1.80) per share

Comment from the CEO We conclude 2019 with a weak fourth quarter. The market situation is still challenging, and the quarter showed both weaker sales and order intake. Sales amounted to SEK 346 m, a decrease of 5 % from the corresponding period last year. Organically, the decrease is 10 %.

In Europe, mainly driven by Germany, the downturn has continued and we believe that the market will continue to be weak during the first part of 2020. The Americas and Asia also saw a weaker market during the quarter, although there are some positive indicators for the future. In general, the future demand in our markets is difficult to assess. On the product side, we can see that Anybus and also partly Ixxat are the main reasons for our weaker development. Especially our embedded products, which are dependent on investments in production, are affected when our customers have weak own demand and continue to reduce their stock. On the positive side, we can see that both Ewon and Intesis made a stronger quarter.

Despite a hesitant market, we see that interest in HMS solutions remains high and we have a record number of new leads. The products sold according to our Design-Win business model, continue to show stable growth in the number of new customers during 2019. In total, we received 199 (177) new Design-Wins during the year. This brings the total number of active Design-Wins to 1,797 (1,693), an increase of 6 % compared to the previous year. Of these, 1,399 (1,304) are in production, while 398 (389) are expected to be in production in the coming years. 49 % of the total revenue is related to Design-Wins. A continued steady inflow of new Design-Wins is proof of HMS' attractive product offering and gives us good platform for future growth.

During the quarter, the integration of Beck IPC GmbH was completed, including a settlement regarding agreed additional purchase price. This had a positive impact on the quarter's operating profit by SEK 19 m.

The quarter shows a stable gross margin of 61.2 %, which is slightly better than the corresponding quarter last year, despite lower production volumes during the quarter. Operating profit for the quarter amounted to SEK 55 m, corresponding to an operating margin of 16 %. The adjusted operating profit, excluding the above mentioned earn-out settlement and restructuring effect, amounts to SEK 33 m. Our cash flow continues to be strong, largely driven by improvements in working capital.

The previously communicated cost-savings program has been implemented during the quarter. The cost reduction program aimed to adapt the organization to focus on segments with growth potential, and also strengthen cost control in areas with weaker growth prospects in the future. 43 employees have terminated their employment at HMS, and the cost of the program totalled at SEK 22 m, compared to the previously estimated SEK 25 m. The annual savings are expected to be SEK 45 m, which is in line with what was previously communicated.

During the year, we continued to develop our global Supply Chain, which in 2019 delivered more than 1.1 million products to our customers. During the year, we moved some of our production from China to Europe, where we expanded production in Lithuania and started cooperating with a new partner in Romania. A large part of the final stages in our production processes programming and quality control are carried out within HMS' own facilities and approximately 90 % of our products are defined as Made in the EU.

The full year 2019 concludes sales of SEK 1,519 m, an increase of 11 % from 2018 and an operating profit of SEK 243 m, corresponding to an operating margin of 16 %. It is also worth noting that profit after tax in 2019 has been positively affected this year's last quarter partly thanks to Belgian tax authorities has granted us SEK 19 m in tax relief for product development operations linked to our Ewon products for 2018-2019.

Looking back over the last ten years, HMS has delivered an annual average sales growth of 18 % and an average operating margin of 18 %, which is just below our long-term goals of 20 % growth and operating margin. In the sh
LINK: http://www.hms-networks.com/news-and-insights/news-from-hms/2020/02/03...
See more stories from hms

Most recent headlines

03/06/2024

Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives

Dalet, a leading technology and service provider for media-rich organizations, a...

28/04/2024

Mediahaus delivers the first SRT live-streaming sports production over 5G with URSA Broadcast G2

Mediahaus delivers the first SRT live-streaming sports production over 5G with U...

28/03/2024

The 4K cameras giving audiences an astronaut's view of Earth

TVBEurope meets Charles Black, founder and CEO of Sen, which has sent a payload of 4K cameras to the ISS to livestream images of Earth to audiences around the w...

28/03/2024

2024 Big Night In Raises $145k to Support Triangle Arts Councils

Capitol Broadcasting and WRAL-TV once again proudly supported our local arts community with the broadcast of Big Night in for the Arts Thursday, March 7, 2024. ...

28/03/2024

JIC, MRC Announce Accord On Roles In Judging Measurement Companies

With more companies offering different approaches to measuring television viewing and campaign effectiveness, two of the groups that evaluate potential media bu...

28/03/2024

Hulu Added to Disney Plus App for Bundle Subscribers

The Walt Disney Co. said that it launched Hulu on Disney Plus, which makes Hulu programming available via the Disney Plus app....

28/03/2024

GroupM To Double Ad Spending On Women's Sports Programming

Giant media buyer GroupM said it plans to double its media spending on women's sports....

28/03/2024

Scripps Renews State Farm As Sponsor of Friday Night WNBA on Ion

Scripps Sports said that State Farm has signed a new multi-year agreement to continue as the title sponsor of Ion's Friday night WNBA telecasts....

28/03/2024

Elisabeth Moss, Kerry Washington Sign On for Imperfect Women' on Apple TV Plus

Elisabeth Moss and Kerry Washington will star in, and executive produce, Imperfe...

28/03/2024

Telemundo Station Group Addresses Climate Change With Month-Long Initiative

Telemundo Station Group launches the month-long climate change initiative Our Planet Thursday, March 28. The multiplatform campaign ends on Earth Day, April 22,...

28/03/2024

Circle City Broadcasting Renews Nielsen Ratings Deal

Nielsen said that Circle City Broadcasting, owner of WISH-TV in Indianapolis, has renewed its local TV measurement deal....

28/03/2024

Lionsgate Extends Deal With Seth Rogen's Point Grey Pictures

Lionsgate Television said it extended its deal with Point Grey Pictures, the production company led by Seth Rogen, Evan Goldberg and James Weaver....

28/03/2024

Ariana DeBose Back as Tonys Host

Ariana DeBose returns as host of the Tony Awards Sunday, June 16, on CBS and Paramount Plus. It is her third consecutive time hosting, and it will be the 77th T...

28/03/2024

The Steve Wilkos Show' Renewed for Season 18

The Steve Wilkos Show has been renewed for its 18th season in national syndication, Tracie Wilson, executive VP, NBCUniversal Syndication Studios & E! News, sai...

28/03/2024

Sinclair Selects Embrace as Its Media Orchestration Engine

PARIS Embrace, a developer of advanced automation and orchestration software solutions, has announced that Sinclair Broadcast Group has selected Embrace's P...

28/03/2024

Nielsen and Circle City Broadcasting Renew Local TV Measurement Deal

NEW YORK Nielsen has a multi-year renewal with Circle City Broadcasting, Indianas only locally owned and operated broadcast and digital news media network, for ...

28/03/2024

JVC to Demo Its First Ever 40x Zoom PTZ Camera Series at 2024 NAB Show

LAS VEGAS JVC Professional Video has announced that it will debut its new KY-PZ540 Series PTZ Cameras with 40x zoom at 2024 NAB Show (Booth C4720)....

28/03/2024

Brightcove Launches Cloud Playout 2.0

BOSTON Brightcove has announced the launch of Cloud Playout 2.0, a platform that the company said will offer customers new ways to create linear channels, monet...

28/03/2024

NBC Sports Chicago to Air First-Ever Animated Real-Time Local Sports Telecast

The Chicago Blackhawks and NBC Sports Chicago have announced a collaboration with the NHL to bring fans the first-ever local animated real-time sports telecast....

28/03/2024

The Best News Coverage is Real, Live, Balanced, Professional

The Best News Coverage is Real, Live, Balanced, Professional Andy Marken March 28, 2024 0 Comments Hero image source News of the World, Perfect Wo...

28/03/2024

Generations: The Legacy - Wednesday's episode, 27 March 2024 [VIDEO]

Generations: The Legacy - Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The S...

28/03/2024

Prison Journalism: Witness the Cycle from the Streets

Prison Journalism: Witness the Cycle from the StreetsWesley Leong was incarcerated at the age of 15 in 1996 at Pollsmoor Prison. He is currently part of Restore...

28/03/2024

Prison Journalism: Inmate pre-release and release processes

Prison Journalism: Inmate pre-release and release processesDean Mashimbwe, a Zimbabwean migrant residing in Cape Town, was incarcerated at Pollsmoor Correctiona...

28/03/2024

Streaming today: When You Finish Saving The World' on Netflix - 28 March 2024

Streaming today: When You Finish Saving The World' on Netflix - 28 March 20...

28/03/2024

Prison Journalism: The Story of Paulus

Prison Journalism: The Story of PaulusDavid van Nek was incarcerated in Pollsmoor Prison from 2013 until 2015 and participated in the restorative justice progra...

28/03/2024

Prison Journalism: Inside and Outside

Prison Journalism: Inside and OutsideFawaaz Adendorff was incarcerated in Pollsmoor Correctional Centre and participated in a Restorative Justice programme whil...

28/03/2024

Tonight on Muvhango: Imani escapes Khumo's hellhole

Tonight on Muvhango: Imani escapes Khumo's hellholeDon't miss Thursday, 28 March's riveting episode of South African soapie Muvhango on SABC 2 on DS...

28/03/2024

Tonight on Generations: Kea can sense her brother is hiding something

Tonight on Generations: Kea can sense her brother is hiding somethingDon't miss Thursday, 28 March's riveting episode of South African soapie Generation...

28/03/2024

Tonight on Smoke and Mirrors: Magolide and Tiny compete against each other

Tonight on Smoke and Mirrors: Magolide and Tiny compete against each otherDon't miss Thursday, 28 March's riveting episode of South African soapie Smoke...

28/03/2024

Tonight on Champions: Washington's struggle takes an unexpected turn

Tonight on Champions: Washington's struggle takes an unexpected turnDon't miss Thursday, 28 March's riveting episode of South African soapie Champio...

28/03/2024

Tonight on Scandal: Tibi's meltdown softens a teacher

Tonight on Scandal: Tibi's meltdown softens a teacherDon't miss Thursday, 28 March's riveting episode of South African soapie Scandal! on e.tv on DS...

28/03/2024

Tonight on Gqeberha: Lulama tells Thulani that she's pregnant with his child

Tonight on Gqeberha: Lulama tells Thulani that she's pregnant with his childDon't miss Thursday, 28 March's riveting episode of South African soapie...

28/03/2024

Tonight on My Brother's Keeper: Ndumiso has the wrong end of the stick

Tonight on My Brother's Keeper: Ndumiso has the wrong end of the stickDon't miss Thursday, 28 March's riveting episode of South African soapie My Br...

28/03/2024

Tonight on Skeem Saam: Lehasa doubles down on his ill-treatment of Pretty

Tonight on Skeem Saam: Lehasa doubles down on his ill-treatment of PrettyDon't miss Thursday, 28 March's riveting episode of South African soapie Skeem ...

28/03/2024

Thales speeds up its development of AI for defence

Facebook Twitter LinkedIn Thales, Europe's leading high-tech company in the civil and defence fields, has announced the creation of cortAIx, which bri...

28/03/2024

Get Cozy With Palia' on GeForce NOW

Ease into spring with the warm, cozy vibes of Palia, coming to the cloud this GFN Thursday. It's part of six new titles joining the GeForce NOW library of ...

28/03/2024

Smoke and Mirrors: Wednesday's episode, 27 March 2024 [VIDEO]

Smoke and Mirrors: Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The South Af...

28/03/2024

Muvhango: Wednesday's episode, 27 March 2024 [VIDEO]

Muvhango: Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The South African web...

28/03/2024

Gqeberha: The Empire - Wednesday's episode, 27 March 2024 [VIDEO]

Gqeberha: The Empire - Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The Sout...

28/03/2024

Skeem Saam: Wednesday's episode, 27 March 2024 [VIDEO]

Skeem Saam: Wednesday's episode, 27 March 2024 [VIDEO]Missed an episode of Skeem Saam? No problem! Watch the latest episode of your favourite South African ...

28/03/2024

House of Zwide: Wednesday's episode, 27 March 2024 [VIDEO]

House of Zwide: Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episode of South African soapie House of Zwide on The South Africa...

28/03/2024

My Brother's Keeper: Wednesday's episode, 27 March 2024 [VIDEO]

My Brother's Keeper: Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The So...

28/03/2024

Uzalo: Wednesday's episode, 27 March 2024 [video]

Uzalo: Wednesday's episode, 27 March 2024 [video]Stay up to date with the latest episodes of your favourite South African soapie on The South African websit...

28/03/2024

Scandal!: Wednesday's episode, 27 March 2024 [VIDEO]

Scandal!: Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The South African web...

28/03/2024

Umkhokha: The Curse - Wednesday's episode, 27 March 2024 [VIDEO]

Umkhokha: The Curse - Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The South...

27/03/2024

UKTV sets up second series of Dream Car Fixers for Yesterday and UKTV Play

Wednesday 27 March 2024 - UKTV has commissioned a second series of Dream Car Fixers (6x60) for leading factual channel Yesterday and free streaming service UKTV...

27/03/2024

Inside the Archives: It's Lights, Curtains, Action When Sundance Films Become Stage Productions

By Jen Scott It's time to unwrap those noisy candies and put your phone on ...

27/03/2024

Paving the Way' for Spotify's NextGen Scholarship Recipients

Spotify is committed to amplifying the voices of underrepresented groups, and that starts with empowering the creators who will shape our industry's future....

27/03/2024

Sencore and Showfer Announce Collaboration at NAB 2024, With a Brand-New Content Management and Distribution Solution

Las Vegas, NV, April 14-17, Booth W2401 Sencore, a leading provider of profess...

27/03/2024

Living Black, the longest-running Indigenous current affairs television program in Australia, returns for its 21st year with new guests

Living Black, the longest-running Indigenous current affairs television program ...