Third quarter
Net sales for the third quarter reached SEK 472 m (345), corresponding to an in crease of 37%. Currency translations had a negative effect of SEK 7 m on net sales
Order intake was SEK 669 m (336), corresponding to an increase of 99%
Operating profit reached SEK 101 m (77), equal to a 21.5% (22.3) operating margin
Profit after taxes totalled SEK 84 m (61) and earnings per share was SEK 1.81 (1.33)
Cash flow from operating activities amounted to SEK 148 m (116)
HMS acquired 60% of the shares in Owasys Advanced Wireless Devices S.L.
First nine months
Net sales for the first nine months reached SEK 1,401 m (1,061), cor responding to a 32% increase. Cur rency translations had a negative effect of SEK 69 m on net sales
Order intake was SEK 1,839 m (1,039), corresponding to an increase of 77%
Operating profit was SEK 336 m (213), equal to a 24.0% (20.0) operating margin
Profit after taxes totalled SEK 276 m (163) and earnings per share was SEK 5.75 (3.58)
Cash flow from operating activities amounted to SEK 405 m (286)
Comment from the CEO The trend continues - order intake at new record levels
We continue to see a strong demand in our markets driven by increasing investments in automation, digitalization, energy efficiency and remote monitoring of industrial machinery. Order intake reaches a new record level and amounts to SEK 669 million, corresponding to a growth of 99% compared to the previous year, 80% of this growth is organic. For the first nine months, the corresponding figures are 77% and 66% respectively. As in previous quarters during the year, order intake is boosted by the fact that customers place orders for delivery longer time ahead than usual. This is due to longer lead times related to component shortage. We estimate this temporary positive effect in the order intake to amount to approximately SEK 140 million during the quarter.
The component shortage has also impacted our delivery capacity negatively. Our customers have a good understanding of the current component shortage situation and our assessment is that we do not lose customer orders to any greater extent due to longer delivery times. Despite the challenging situation sourcing components, we achieved net sales of SEK 472 million during the quarter, corresponding to a growth of 37%, of which 18% was organic compared to the previous year. For the first nine months, the corresponding figures are 32% and 22% respectively.
We estimate that the delivery situation has had a negative impact on our sales of approximately SEK 50 million during the quarter as the current component shortage has affected the ability to deliver certain products. The Ewon and Intesis brands in particular experienced delivery disruptions during the quarter.
The effect of the strong order intake and delivery challenges leads to a large build-up of the order book and we now have an order book of approximately SEK 750 million, which is approximately three times higher compared to the corresponding quarter previous year. We assess that the risk of order cancellations is low.
Our geographic markets
In our most important geographical market, Europe, we once again reached an all-time high order intake. The main driving forces are a continued very strong machine-builder market together with increased demand for remote solutions. The positive development has also continued in Asia, with good development both in China and Japan. Our organic order intake more than doubled, primarily driven by a strong industrial market in China. Also in the US, we have noted new record levels in order intake as the market for industrial automation, and the economy in general, continues to be very strong.
The lack of components results in short-term gross margin pressure
The global component shortage is now also affecting costs, and during the quarter we have seen prices of components multiply for some components, which has a negative effect on our manufacturing costs and leads to temporarily lower gross margin of 61.4%. To compensate for these cost increases, we are now implementing price increase for new orders. We expect to see the full effect of the price adjustments in the middle of next year, which means that the gross margin can be expected to be around current, somewhat lower, levels until mid 2022.
Our operating expenditures are increasing according to plan, in line with higher activities and new investments for growth. The increase in operating expenditures in combination with the temporarily lower gross margin mean that profitability is somewhat lower than the two previous quarters in 2021, even though we reach an operating profit of SEK 101 million, corresponding to 22% operating margin. This is still better than our long-term goal. It is also worth noting that cash flow from operations amounts to a record level of SEK 148 million.
The new family members deliver
Our latest acquisitions, Procentec and Owasys deliver. Procentec continues on a winning streak and has during the year shown an organic doubled net sales. Owasys' business is developing as planned, although there are some challenges related to component supply.
Since we see it as probable that the existing put/call options will be exercised to increase HMS ownership to one hundred percent in these two companies we will, in accordance with IFRS, not report any minority. Thus, a liability is also reported that corresponds to the expected payment for the remaining shares in the two companies. In total, the assessment of these options affects our net debt of SEK 390 million.
Sustainability and staff
With more and more people fully vaccinated, the world is starting to open up again. Our employees now work from our offices to an increasing extent and we can meet more and more customers in person. Trade shows are also re-starting, albeit on a small scale.
Most recent headlines
06/10/2025
France T l visions, France's leading broadcaster, has received the 2025 EBU ...
04/09/2025
Monumental Sports & Entertainment (MSE), in collaboration with Dalet, has been a...
07/08/2025
July 8 2025, 22:30 (PDT) Tata Motors & Dolby Bring Dolby Atmos to Harrier.ev, R...
15/07/2025
Independent media outlets in Brazil and Colombia are invited to apply for a new programme aimed at strengthening the long-term resilience of journalism in the f...
15/07/2025
By Lucy Spicer
One of the most exciting things about the Sundance Film Festival...
15/07/2025
Spotify une fuerzas con DiDi, la app l der en servicios de movilidad, delivery y...
15/07/2025
The National Film and Video Foundation (NFVF), an agency of the Department of Sp...
15/07/2025
L3Harris put its CORVUS-RAVEN counter-small UAS capability into the hands of soldiers at VANAHEIM, showcasing its ability to provide passive signal detect, enha...
15/07/2025
Netflix Viewing Up 13.5% vs. May, Represents 42% of Monthly Gain for Streaming
...
15/07/2025
SAN FRANCISCO and BENGALARU, India Sangeeta Chakraborty has been named chief revenue officer at Amagi, a cloud-based software-as-a-service (SaaS) technology pro...
15/07/2025
As part of its mandate, the Advanced Television Systems Committee the U.S. organization tasked with developing advanced broadcast TV standards promotes ATSC 3.0...
15/07/2025
QuickLink, the leading global provider of multi-camera video productions and remote contributions, announces the launch of two innovative control panels Studi...
15/07/2025
Chris Kontopanos has joined leading high-quality microphone solutions manufacturer, DPA Microphones, as the company's new Regional Sales Manager for the Mid...
15/07/2025
Magnifi by VideoVerse, a global leader in AI-powered video automation, has launched a major platform upgrade built to simplify live and archival video editing f...
15/07/2025
Telestream, a global leader in media workflow technologies, will preview its latest innovations at IBC2025, Stand 7.B21. This year's showcase highlights how...
15/07/2025
IBC2025 is set to transform the onsite experience for its global attendees with the launch of a pioneering new feature: full integration of Amsterdam's GVB ...
15/07/2025
Music, sport and technology collided in spectacular fashion as ASB GlassFloor powered the debut of Beats N Buckets, Germany's first Basketball meets Hip-Ho...
15/07/2025
The Collectv, the Emmy award-winning broadcast solutions and workflows consultancy - and winner of Broadcast Tech's Team of the Year is delighted to announc...
15/07/2025
SipRadius, the expert in secure, low latency media transport, will showcase how broadcasters and media companies can take control of fragmented IP workflows at ...
15/07/2025
Appear, the global leader in live production technology, today announced its strategic partnership with beIN ASIA PACIFIC, a leading multi-platform sports media...
15/07/2025
Company marks 15 years of innovation at the show
Broadpeak, a leader in streaming and monetization at scale, will return to IBC (Hall 1, Stand F83. RAI, Amster...
15/07/2025
New software solutions extend trusted timing measurement across broadcast, venue, and professional AV applications
Hitomi Broadcast, the market leader in audi...
15/07/2025
SHENZHEN, China Telycam has added control options for its portfolio of pan-tilt-zoom (PTZ) cameras with a new plug-in for Elgato's Stream Deck family of con...
15/07/2025
MELVILLE, N.Y. Chyron said its Chyron LIVE cloud-native live production solution has successfully completed the Amazon Web Services (AWS) Foundational Technical...
15/07/2025
PHILADELPHIA The Xumo streaming platform joint venture between Comcast and Charter has announced the nationwide launch of a new line of Xumo TVs from Westinghou...
15/07/2025
LONGMONT, Colo. DPA Microphones said Chris Kontopanos has joined the microphone solutions provider as its new regional sales manager, Mid-Atlantic....
15/07/2025
NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNIT...
15/07/2025
Audiences and ad dollars are moving to streaming - media organizations are evolving to meet them there....
15/07/2025
U&GOLD has acquired the broadcast rights for Fawlty Towers: The Play (1x120'). Recorded during the show's run at the West End with its original cast, Fa...
15/07/2025
Live From MLB All-Star 2025: FOX Sports Aims To Capture Chatty Players on the Fi...
15/07/2025
Live From MLB All-Star 2025: From Live Event Coverage to Studio Shows, MLB Netwo...
15/07/2025
Live From MLB All-Star 2025: FOX Sports' Francisco Contreras and Tom Lynch o...
15/07/2025
Live From MLB All-Star: FOX Sports' Production Is Bigger Than Ever in Steamy...
15/07/2025
Live From MLB All-Star: FOX Sports Director Matt Gangl and Producer Pete Machesk...
15/07/2025
TV SIM builds for the future with high efficiency transmitter from Rohde & Schwa...
15/07/2025
News Corp Authorizes New $1 Billion Stock Repurchase Program and Intends to Acce...
15/07/2025
Back to All News
Netflix Announces the Start of Production of Los secretos de l...
15/07/2025
Harmonic's Hybrid, AI-Powered and Live Sports Streaming Innovations are Key ...
15/07/2025
The well-known and well-loved 4099 has been completely revamped. It features amazing CORE+ technology, which eliminates distortion and extends dynamic range, a ...
15/07/2025
Comscore Partners with HyphaMetrics to Launch Advanced Person-Level Audience Mea...
15/07/2025
Peak audiences of over half a million tune into both Kerry v Tyrone and Donegal ...
15/07/2025
PROTON Announces Production Facility Expansion Ahead of IBC2025 posted: 15/07/2025
Proton Announces Production Facility Expansion Ahead of IBC2025
Alongs...
15/07/2025
Submissions for NVIDIA's Plug and Play: Project G-Assist Plug-In Hackathon a...
14/07/2025
The Royal Moroccan Air Force hosted a C-130 award ceremony with L3Harris Technologies President of Intelligence, Surveillance and Reconnaissance Jason Lambert a...
14/07/2025
UK launch set for September, following on from recent US and Germany releases
London - UK, July 14, 2025 - Nielsen, a global leader in audience measurement, da...
14/07/2025
SHENZHEN, China Telycam has added control options for its portfolio of pan-tilt-zoom (PTZ) cameras with a new plug-in for Elgato's Stream Deck family of con...
14/07/2025
The awards are open to IBC2025 show exhibitors and offer a valuable platform for companies to raise awareness for the new products and solutions they will be la...
14/07/2025
Clear-Com is excited to announce a significant expansion of the award-winning Arcadia Central Station with new software updates. Together, these releases dram...
Third quarter 
