Sony Digital Rapids Pixel Power calrec Sony

HMS Q3 Report 2018

12/02/2019

Third quarter

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

24/04/2019

Eightfold.ai Secures $28 Million In Series C Funding Following Significant Interest In Its Talent Intelligence Platform

Growing customer demand for AI-powered solutions to hiring, retention, diversity...

24/04/2019

The Eightfold Path

By Chloe Breider and Jules Maltz IVP is excited to announce our Series C investment in Eightfold.ai, a Talent Intelligence Platform that solves employment by s...

24/04/2019

Love Island to launch in Hungary

Published: Wed 24 Apr 2019 Love Island to launch in Hungary New commission from RTL means six territories will launch show in 2019 Global hit format is also ...

24/04/2019

Ericsson D-Fifteen: driving U.S. innovation to 5G-enabled Industry 4.0

Announced on April 23, and set to open mid-2019, the Santa Clara center will pursue innovative ideas and thought leadership based on the principles of: Dare, De...

24/04/2019

With Black Panther' and Captain Marvel,' Superhero Movie Concept Albums Take Flight

Cape or no cape, team player or lone ranger, most superheroes have at least one ...

24/04/2019

CHURCH PRODUCTION REVIEWS d:fine CORE 6066

Thanks to DPAs CORE amplifier technology, our reviewer notes, the smaller (3 mm) capsule delivers the same performance as previous larger designs - maybe even b...

24/04/2019

IMAX and Barco Enter Into New Agreement to Enhance the Blockbuster Moviegoing Experience

IMAX and Barco Enter Into New Agreement to Enhance the Blockbuster Moviegoing Ex...

24/04/2019

Teen victim of facial recognition arrest sues...

pic: Shutterstock Ousmane Bah, an 18-year-old student from New York, is suing Apple for $1 billion for false arrest, reports Bloomberg. According to Bah, Apple...

24/04/2019

AV's place in retail...

Brad Grimes AVIXA is hosting discussions using AV technologies to enhance the retail banking experience at conferences in the UK and Prague. A discussion tit...

24/04/2019

La Reina del Sur' Premiere Pops on Telemundo

The second season premiere of crime drama La Reina del Sur came eight years after season one wrapped, but the Telemundo show still popped a big number April 22....

24/04/2019

Season Three of Designated Survivor' On Netflix June 7

Credit: ABC/Ben Mark Holzberg Season three of political thriller Designated Survivor starts on Netflix June 7. The show, starring Kiefer Sutherland as Presiden...

24/04/2019

Primetime Ratings: NBC Wins With Hearty New Amsterdam'

(Photo by: Virginia Sherwood/NBC) NBC won a soft night for ratings, taking the Tuesday title with an assist from New Amsterdam. NBC's 0.8 in viewers 18-49 ...

24/04/2019

Nexstar Picks Up SPTs Mel Robbins Talker

Sony Pictures Television's The Mel Robbins Show has added Nexstar Media Group to its launch roster, bringing the show's clearances to 90% of U.S. televi...

24/04/2019

We're lucky to be alive, says Durban flood survivor

byMusa Binda for GroundUp. I have seen heavy rains in my life, but not like I saw in the early hours of today. Xolani Ngubo, 43, and his family were left ho...

24/04/2019

WWE Smackdown Live: Results, live stream and video highlights 24th April 2019

After an eventful RAW last night, the blue brand of Smackdown Live will look to prove they got the better hand in the Superstar Shakeup....

24/04/2019

Joan room booking gets...

Exertis has signed a UK distribution agreement with Visonect for Joan, its digital display and meeting room booking system for scheduling of office spaces and m...

24/04/2019

InfoComm 2019: Center Stage is back to promote...

Center Stage will return to the InfoComm 2019 show floor (June 12-14, at the Orange County Convention Center in Orlando, USA). Thinkers and practitioners from t...

24/04/2019

Teen victim of facial...

pic: Shutterstock Ousmane Bah, an 18-year-old student from New York, is suing Apple for $1 billion for false arrest, reports Bloomberg. According to Bah, Apple...

24/04/2019

Broadsign to acquire Ayuda Media Systems

[L-R] Andreas Soupliotis, founder of Ayuda Media Systems; Fran ois de Gasp Beaubien; Burr Smith, president and CEO of Broadsign Broadsign International, a dig...

24/04/2019

VR surgery simulator receives first medical accreditation

FundamentalVR's total hip replacement simulation has received accreditation from the Royal College of Surgeons England in the UK. The total hip replacemen...

24/04/2019

Canon Introduces Two New UHDgc 2/3-Inch Portable Zoom Lenses Designed For 4K UHD Broadcast Cameras

Canon Introduces Two New UHDgc 2/3-Inch Portable Zoom Lenses Designed For 4K UHD...

24/04/2019

SIC selects Sony for IP based TV production centre and cloud based multiplatform delivery

SIC selects Sony for IP based TV production centre and cloud based multiplatform...

24/04/2019

Qatar's Al-Arabi SC Turbocharges Opposition Analysis and Team Performance With ChyronHego Coach Paint Telestration Tool

Qatars Al-Arabi SC Turbocharges Opposition Analysis and Team Performance With Ch...

24/04/2019

BroaMan Route66 AutoRouters' role in Royal Albert Hall's major sound upgrade

BroaMan Route66 AutoRouters' role in Royal Albert Hall's major sound upg...

24/04/2019

Gray is the new Gold Standard

Gray is the new Gold Standard posted: 24/04/2019 Lighting designer Jonny Gaskell created an elegant fusion of understatement and a bit of mystery for the UK...

24/04/2019

MLA Provides its Signature Consistancy and Tonality for Legends Tour

MLA Provides its Signature Consistancy and Tonality for Legends Tour posted: 24/04/2019 MLA at SSE Arena, Wembley The Legends Live tour brought together ...

24/04/2019

Schweizer Broadcast-Dienstleister tpc wird in SRF re-integriert.

Schweizer Broadcast-Dienstleister tpc wird in SRF re-integriert. posted: 24/04/2019 Detlef Sold verl sst tpc Der Schweizer Broadcastdienstleister tpc, ei...

24/04/2019

Nadus Films on Making Films That Make a Difference with Hawk-Woods Mini V-Lok Batteries

-- From filming NFL player Chris Long bringing clean water to east African cou...

24/04/2019

SMPTE Hollywood Section to Tackle Cybersecurity at April Meeting

-- The Hollywood Section of SMPTE , the organization that is defining the future of storytelling, will focus on cybersecurity at its monthly meeting slated fo...

24/04/2019

Framestore Pictures and GEICO get ready for Avengers: Endgame

-- In the newest GEICO and Avengers crossover, the second to be directed by Tom Routson of Framestore Pictures, we find the Gecko walking down a busy street a...

24/04/2019

Eastern European pay-TV revenues will peak in 2019'

Expected to fall to $6.59 billion by 2024 Dan Meier 5 hours ago Expected to fall to $6.59 billion by 2024 target=_blank title=Share on LinkedIn class=s...

24/04/2019

Nine per cent of French population use SVoD every day

Up 61 per cent on 2018 Dan Meier 4 hours ago Up 61 per cent on 2018 target=_blank title=Share on LinkedIn class=share-linkedin> Up 61 per cent on......

24/04/2019

TalkTalk adds Amazon Prime Video

Follows yesterdays announcement that Amazon is now available to Virgin Media customers Jenny Priestley 5 hours ago Follows yesterday's announcement t...

24/04/2019

Disney+ could spell trouble for Netflix

23 per cent would leave Netflix if Disney films and shows were removed Dan Meier 4 hours ago 23 per cent would leave Netflix if Disney films and shows we...

24/04/2019

Virgin Media's Tom Mockridge to step down

Will be succeeded by Lutz Sch ler Jenny Priestley 4 hours ago Will be succeeded by Lutz Sch ler target=_blank title=Share on LinkedIn class=share-linke...

24/04/2019

Teleglobal Brings Broadband Access and Mobile Connectivity Services to Rural Communities in Indonesia via SES Networks

Written on 24 Apr 2019 Satellite-based broadband access delivered via SES-12 t...

24/04/2019

No Looking Back For George Ezra's DiGiCo Package

BRIT Award winner and chart-topping singer-songwriter George Ezra has been back on the road in support of his second studio album Staying at Tamara's. To ha...

24/04/2019

Panyaza Lesufi unveils new Hoerskool Driehoek walkway

Gauteng education MEC, Panyaza Lesufi, on Tuesday, stood on the walkway that once claimed the lives of four Hoerskool Driehoek learners to unveil the newly-buil...

24/04/2019

Eliud Kipchoge: What you need to know about the London Marathon favourite

The London Marathon takes centre stage on Sunday, and all eyes will be on Kenya's Eliud Kipchoge, who is chasing an incredible eight world marathon major. ...

24/04/2019

New Office and New Partner in SBS Australia

It has been an explosive start to the year for us with International expansion enabling us to offer our services to more regions, with new offices opening in th...

24/04/2019

never.no partner with Grabyo

It's been an exciting few weeks here at never.no with the announcement of our very own Real-Time Social Graphics solution, providing advanced visualisation ...

24/04/2019

Toyota's campaign for all-new RAV4 - a touch irreverent, but incredibly smart

24 April, 2019 - 08:02 Toyota South Africas campaign introducing its new RAV...

24/04/2019

Season Three of Nailed It! on Netflix May 17

Season three of cooking competition series Nailed It! returns to Netflix May 17. Nicole Byer and Jacques Torres host the show, which sees home bakers with a ter...

24/04/2019

Showtime to Offer Comedy Store Docu-Series

Showtime will air a documentary series about the Los Angeles club The Comedy Store. There will be four parts, directed and executive produced by Mike Binder. Th...

24/04/2019

Primetime Ratings: Fox, NBC Split Win

Fox and NBC split the ratings crown Monday, Fox led by 9-1-1 and NBC by The Voice, and both doing a 1.0/4. That beat the 0.8/3 that ABC posted. On Fox, The Res...

24/04/2019

Syndication Ratings: Jeopardy!', Judge Judy' Both Have Record-Breaking Weeks

Records were broken in syndication in the week ending April 14, with Jeopardy! c...

24/04/2019

Season Two of Pose' on FX June 11

The second season of drama Pose begins on FX June 11. The new season will have 10 episodes. Ryan Murphy co-created the show, about underground ball culture in N...

24/04/2019

CBS All Access Orders Season Four of The Good Fight'

CBS All Access has ordered a fourth season of The Good Fight. The show is a spinoff of The Good Wife, which aired on CBS. Robert and Michelle King are showrunne...

24/04/2019

James Holzhauer Brings His Jeopardy! Total to More Than $1 Million

Professional sports gambler James Holzhauer crossed the $1 million mark on CBS Television Distribution's Jeopardy! on Tuesday, when he won $118,816 to bring...

24/04/2019

The Detour Returns to TBS on June 18

The Detour Returns to TBS on June 18 Tuesday, April 23, 2019 Share: Facebook Tweeter Email Download: Download PDF The Detour Returns to TBS on June 18 ...