HMS Q3 Report 2018
24/10/2018
Net for the third quarter reached SEK 353 m (305), corresponding to an increase of 16 %. The revaluation of the Swedish krona had a positive impact of SEK 29 m
Operating profit reached SEK 74 m (65) equal to a 21 % (21) operating margin
Order intake was SEK 360 m (289), corresponding to an increase of 24 %
Cash flow from operating activities amounted to SEK 73 m (62)
Profit after taxes totalled SEK 51 m (42) and the earnings per share was SEK 1.09 (0.90)
Acquisition of 100 % of the shares in Beck IPC GmbH
First nine months
Net sales for the first nine months amounted to SEK 1,003 m (882), corresponding to a 14 % increase. The revaluation of the Swedish krona had a positive impact of SEK 44 m
Operating profit was SEK 199 m (181), equal to a 20 % (21) operating margin
Order intake was SEK 1,046 m (916), corresponding to an increase of 14 %
Cash flow from operating activities amounted to SEK 144 m (171)
Profit after taxes totalled SEK 129 m (123) and the earnings per share was SEK 2.78 (2.62)
Comment from the CEO The third quarter shows both record net sales and record profit for HMS with 353 MSEK in sales and 74 MSEK in operating profit. Despite record level sales, it is still a somewhat weak underlying organic growth in local currencies of 4 %. Our reported growth is supported by positive currency effects as well as sales from German Beck IPC, which was acquired in July. This gives a total sales growth of 16 % in the quarter which is just below our long-term goal.
Our order intake during the quarter landed at 360 MSEK, a growth of 24 % compared to the corresponding quarter last year, which indicates a positive development and continued growth going forward.
We see a stable demand on our major markets as a result of a continued underlying business growth and investments of automation solutions in the industry. During the quarter, the strong development we saw during the second quarter in US have continued. EMEA and Asia had a stable development but with slightly lower growth than before.
On the cost side, we have in the third quarter seasonally lower costs. This together with solid sales and stable gross margin results in an operating profit at a new record level, 74 MSEK, corresponding to an operating margin of 21 %, which is just over our long-term goal. Integration work with Beck IPC is ongoing and we focus on coordinating technology platforms to strengthen our offering in Industrial IoT (IIoT). Overall, the acquisition of Beck IPC has had insignificant impact on the quarter's operating profit.
Our underlying cash flow remains strong and amounted to 73 MSEK during the quarter, which further strengthens our financial position and gives us relatively low net debt of about 1.36 times EBITDA on a yearly basis.
We are experiencing that the strained situation within availability for electronics components have improved during the quarter, HMS and many of our customers have taken action to offset the situation. The basic problem remains but the effects are currently estimated to be less than we previously indicated. We will continue to have a slightly higher inventory than normal for the coming quarters, but we don't expect that the availability of electronic components will have any major impact on delivery capacity.
During the quarter we have continued to develop our solutions within data security and has now got both of our cloud solutions, Argos and Talk2M, certified by CSA-STAR, which is based on ISO / IEC 27001. We have also launched new Anybus products with support for IIoT protocols such as UPC UA and MQTT, which makes it possible to combine classical communication technologies with new IIoT features, which makes it easier for our existing customers to add IIoT support in their existing products.
We hold on to our ambitious growth targets for coming years A long-term annual growth of 20 % per annum and an operating margin of 20 %. Our focus is to drive continued growth in all our business areas. We continue to focus on our long-term growth goals based on a balanced view of our costs. In the long run, we estimate that the market for industrial data communications will constitute an interesting growth area and we continue to focus on our motto HMS Connecting Devices .
Halmstad October 24, 2018
Staffan Dahlstr m
Chief Executive Officer
Further information can be obtained from:
CEO Staffan Dahlstr m, telephone +46 (0) 709-17 29 01 or
CFO Joakim Nideborn, telephone +46 (0) 707-72 29 83
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 08.00 CET on October 24, 2018.
HMS Networks Q3 report 2018 (English)
LINK: | http://www.hms-networks.com/press/2018/10/24/interim-report-2018-janua... |
See more stories from hms |
Most recent headlines
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
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...
18/04/2024
Dyn Media and NEP Germany pioneer new frontier in remote...
In August 2023, Dyn Media launched as a new broadcaster in European sports, aimed at giving sports beyond football the exposure and viewership they deserve. The...
18/04/2024
Hitomi partners with ES Broadcast Hire for US rentals
Hitomi Broadcast, market leader in audio/video alignment and latency tools based in the UK, has signed a partnership deal with global broadcast rental specialis...
18/04/2024
Screen Australia and Dynamic Television announce new Scripted Initiative
18 04 2024 - Media release Screen Australia and Dynamic Television announce new Scripted Initiative Savage River Screen Australia and Los Angeles-based telev...
18/04/2024
Vislink's DragonFly V - The Company's Smallest-Ever Transmitter Debuted at NAB 2024
Vislink's DragonFly V - The Company's Smallest-Ever Transmitter Debuted ...
18/04/2024
MediaSilo to Offer Camera to Cloud with Atomos
MediaSilo to Offer Camera to Cloud with Atomos Brie Clayton April 17, 2024 0 Comments Integration between MediaSilo and Atomos Cloud Studio unlocking ...
18/04/2024
MultiDyne Updates its SilverBULLET Series to Serve More Fiber-Optic Links
MultiDyne Updates its SilverBULLET Series to Serve More Fiber-Optic Links Brie Clayton April 17, 2024 0 Comments MultiDyne Fiber Optic Solutions intro...
18/04/2024
Cinedeck Partners with Paramount to Revolutionize Content Delivery Process
Cinedeck Partners with Paramount to Revolutionize Content Delivery Process Brie Clayton April 17, 2024 0 Comments Cinedeck, a pioneer in integrated de...
18/04/2024
Unreal for video adding rocks and foliage
Unreal for video adding rocks and foliage Graham Quince April 17, 2024 0 Comments Welcome to my series on learning Unreal Engine for After Effects u...
18/04/2024
Best Budget Beginner-Friendly 4k Drone
Best Budget Beginner-Friendly 4k Drone Sean Alami April 17, 2024 0 Comments Potensic Atom 4k 3 axis Gimbal Drone, ideal drone for beginners. Some con...
18/04/2024
Race or Just Have Fun at Rocky Mount Mills for a Good Cause, Not Your Run of the Mill 5K
Rocky Mount Mills will be overflowing with runners, families and friends, all fo...
18/04/2024
Berklee's Yoon-Ji Lee Receives Guggenheim Fellowship
Berklee's Yoon-Ji Lee Receives Guggenheim Fellowship Lee, an assistant professor of composition, creates music based on unconventional and nonlinear struc...
18/04/2024
Ben Sherwood, Former ABC President, Named CEO at The Daily Beast
Ben Sherwood, former president of Disney ABC Television Group, has been named CEO and publisher at The Daily Beast. Joanna Coles, former chief content officer a...
17/04/2024
Sundance Institute Launches RFI and RFP Process to Explore Host Locations for the Sundance Film Festival in 2027 and Beyond
Opening today, the exploration is aimed at selecting a location that will preser...
17/04/2024
Spotify's Michael Krause Talks Industry Trends Ahead of Our Music and Podcasting Summits in Germany
On April 18 and 19, experts from across the audio industry-including artists, pu...
17/04/2024
Spotify Brings Entrepreneurs and Trailblazers Together to Talk the Future of Tech in the UK
With its particular combination of talent, ambition, culture, and, of course, wo...
17/04/2024
NextGen Partners With Howard University Professor Nikole Hannah-Jones on Student Podcasting Course
At Spotify, we want to equip student creators with the tools and resources neede...
17/04/2024
Strengthening Australian Industry Capability Through Sovereign Sustainment Support
L3Harris Communications Australia Field Service support continues to grow with a...
17/04/2024
L3Harris Team Aligns 10 Mirrors for NASA's Roman Telescope
An optical technician lays on a diving board suspended between NASAs Nancy Grace Roman Space Telescopes primary and secondary mirrors. The photo is a projected ...
17/04/2024
Graham Media Selects Bitmovin Playback
DENVER Video streaming infrastructure providers Bitmovin has announced that the Graham Media Group has selected Bitmovin Playback to enhance its viewer experien...
17/04/2024
Survey: LGBTQIA+ TV Visibility Drives Viewership Among Young Americans
LGBTQIA+ representation in TV content boosts viewership among young (18-34) Americans, according to a new report from Horowitz Research....
17/04/2024
New NVIDIA RTX A400 and A1000 GPUs Enhance AI-Powered Design and Productivity Workflows
New NVIDIA RTX A400 and A1000 GPUs Enhance AI-Powered Design and Productivity Wo...
17/04/2024
Frezzi Unveils SunLight 2: The Ultimate High-Output Lighting Companion for ENG and Broadcast Production
Frezzi Unveils SunLight 2: The Ultimate High-Output Lighting Companion for ENG a...
17/04/2024
Peakto Search for Lightroom - Find at a glance among thousands of photos AND videos
Peakto Search for Lightroom - Find at a glance among thousands of photos AND vid...
17/04/2024
Simone Pilon Appointed Executive Director at Berklee Valencia
Simone Pilon Appointed Executive Director at Berklee Valencia Pilon, who has served as Berklee Valencia's interim executive director since March 2023, has a...
17/04/2024
CBS Cuts Off Billy Joel Concert Telecast (Updated)
CBS will re-air Sundays Billy Joel concert telecast this Friday (April 19) after several CBS-affiliated stations abruptly cut part of Sundays telecast of the si...
17/04/2024
Jacqueline Matter Named Co-Host on WTTG's Good Day DC'
Jacqueline Matter has been named co-host of Good Day DC at WTTG Washington. Effective immediately, she co-anchors the 4 a.m. newscast with Stephen Graddick, rep...
17/04/2024
TV Usage Takes March Dip While College Hoops Help Cable
Television usage took its usual March dip, dropping 3% from February, according to Nielsen,...
17/04/2024
BET, Tyler Perry Extend Content Agreement Through 2028
BET Media Group, part of Paramount Global, said it and Tyler Perry had reached an agreement extending their content production deal through 2028....
17/04/2024
Warner Bros. Discovery Names David Porter Head of Ad Research
Warner Bros. Discovery said it named David Porter head of ad sales research, data and insights....
17/04/2024
Lionsgate Signs Exec VP Lee Hollin To Long-Term Deal
Lionsgate said it signed a new multi-year employment deal with Lee Hollin, its executive VP, television and head of current programming for Lionsgate Television...
17/04/2024
Jessica Rosenworcel Speaks at the Paley Museum April 16
Federal Communications Commission chair Jessica Rosenworcel sits for an interview at the Paley Museum in New York April 16 at 12:30 p.m. ET. Moderated by Nick T...
17/04/2024
Travis Kelce To Host Are You Smarter Than a Celebrity?' on Prime Video
Travis Kelce will host Are You Smarter Than a Celebrity?, a spinoff of Are You Smarter Than a 5th Grader?, that will stream on Prime Video....
17/04/2024
Amy Alvarez Named News Director at Telemundo's KULX Salt Lake City
Amy Alvarez has been named news director at KULX Salt Lake City, the Telemundo station in the market. She comes from KVDA San Antonio, another Telemundo outlet,...
17/04/2024
Frndly Launches Channel Store, Adding 4 Subscription Services to Lineup
Frndly TV, the low-priced, family-friendly streaming service, said it launched a channel store where users can sign up for subscription streaming services....
17/04/2024
TV Tech Announces Winners of Best of Show Awards at 2024 NAB Show
TV Tech has announced its Best of Show Awards for the 2024 NAB Show, April 14-17 in Las Vegas. The awards are judged by a panel of industry experts on the crite...
17/04/2024
Colorfront showcases upgrades across product range
Colorfront has introduced AI vision-analysis tools to assist master QC operations with detecting framing anomalies, dead pixels, bright titles and sparkles By ...
17/04/2024
Meet the Founder and director
By Matthew Corrigan Published: April 17, 2024 Rory Springthorpe, founder and director at outside broadcasting company Vivid Broadcast, talks to TVBEurope a...
17/04/2024
Riedel Enhances Interstellar Technologies Space Launch Wi...
Riedel Communications today announced its collaboration with Interstellar Technologies, a pioneering space transportation company based in Hokkaido, Japan, to o...
17/04/2024
Riedels Simplylive Production Suite Empowers Lafayette Co...
Riedel Communications announced that Lafayette College, a liberal arts college in eastern Pennsylvania and one of 10 core members in the Patriot League, is usin...
17/04/2024
Slovak Telekom and T-Mobile Czech Republic Upgrade Video...
24i, the video streaming platform expert, today announced that Slovak Telekom and T-Mobile Czech Republic, part of the Deutsche Telekom (DT) Group, have extende...
17/04/2024
OpenDrives Recognized on the 2024 CRN Storage 100 List
OpenDrives, Inc., the global provider of software-defined media workflow solutions and data management capabilities, is honored to announce its inclusion in the...
17/04/2024
Goldbach to Leverage Operatives new converged advertising...
Operative is pleased to announce a new and expanded partnership with Goldbach Media, one of the leading media sales organizations in Switzerland. This partnersh...
17/04/2024
Roberts Communications Network Selects Appear X Platform...
Appear, the global leader in live production technology, and Roberts Communications Network (Roberts), the leading worldwide video distribution and wagering dat...
17/04/2024
Mobilelinks Chooses Appear for UHD Upgrade of DSNG Trucks
Appear enables Mobilelinks to meet updated technical requirements. Appear, the global leader in live production technology, has been selected by Mobilelinks to...
17/04/2024
Appear and Skyline Communications Strengthen Partnership...
The expanded solution offers enhanced visibility and automation of production and distribution workflows for live event contribution applications Appear, the g...
17/04/2024
In a major step in its growth strategy Econocom launches...
Econocom, a sustainable digital enterprise and pioneer of the circular economy in Europe, today announced the launch of an ambitious campaign as part of the rol...