Third quarter
Net sales for the third quarter reached SEK 377 m (353), corresponding to an increase of 7 %. Currency translations had a positive effect of SEK 15 m on net sales
Restructuring costs of SEK 25 m impacts the third quarter, related to a cost reduction program
Operating profit reached SEK 56 m (74) equal to a 14.9 % (20.9) operating margin
Operating profit before restructuring costs reached SEK 81 m equal to a 21.6 % operating margin
Order intake was SEK 372 m (360), corresponding to an increase of 3 %
Cash flow from operating activities amounted to SEK 90 m (73)
Profit after taxes totalled SEK 46 m (51) and earnings per share was SEK 0.98 (1.09)
First nine months
Net sales for the first nine months amounted to SEK 1,172 m (1,003), corresponding to a 17 % increase. Currency translations had a positive effect of SEK 58 m on net sales
Operating profit was SEK 188 m (199), equal to a 16.0 % (19.9) operating margin
Operating profit before restructuring costs reached SEK 213 m equal to a 18.2 % operating margin
Order intake was SEK 1,134 m (1,046), corresponding to an increase of 8 %
Cash flow from operating activities amounted to SEK 193 m (144)
Profit after taxes totalled SEK 138 m (129) and earnings per share was SEK 2.96 (2.78)
Comment from the CEO The third quarter showed weaker growth and order intake and we can see that the market slowdown has continued. Sales for the quarter were SEK 377 m, which represents a growth of 7 % compared to the same period last year. The growth is mostly currency- and acquisition driven, organic growth was 1 %. Order intake during the quarter was SEK 372 m, an organic decline of 5 %.
The weak market development, as previously reported, continued during the third quarter. Both macro data and our customers continue to indicate a weak outlook in all our important geographical markets. Japan has been weak throughout the year but now both Germany and the US have shown clear signs of slowdown, although the US has shown some recovery during the latter part of the quarter.
Right now, we see a combination of both a weaker market and customers lowering their inventories. Primarily, we see a slowdown in the manufacturing industry for our brands Anybus and Ewon, whereas we see a more stable development for our brands Ixxat and Intesis, which are primarily geared towards other industrial markets.
The quarter shows a good gross margin of almost 63 %, which is better than our last quarters. This is mainly driven by an advantageous product mix during the quarter.
As reported in a press release on September 23, a cost reduction program has been initiated to adjust our costs to a weaker market. We therefore report restructuring costs of SEK 25 m during the quarter in order to achieve a cost savings of approximately SEK 45 m. Our operating profit before restructuring costs amounts to SEK 81 m for the quarter, corresponding to an operating margin of 21.6 %. After restructuring costs, operating profit is SEK 56 m and the operating margin is 14.9 %.
The cost reduction program will reduce the number of employees by approximately 40 people. As we have expanded during the last few quarters, both organically and through acquisitions, the number of employees after the program has been completed will be more than at the beginning of 2019. The ambition is to continue to invest in segments with great growth potential, and to continue to have good cost control in areas with weaker growth outlook going forward.
Our cash flow is strong during the quarter, SEK 90 m, as a result of the underlying good profitability. We also reduce our net debt and strengthen our financial position, which gives us a relatively low net debt of SEK 463 m, corresponding to 1.45 times EBITDA.
The new acquisitions, WEBfactory and Raster Products, have entered the group well and are developing according to plan. Strategic partnerships have begun with WEBfactory and we are already seeing some cross-selling.
In the short term we still see limited growth potential. We continue to work with our long-term growth targets, sales growth of 20 % per annum and operating margin of 20 %. In the long term, we believe that the market for industrial data communication will be an interesting growth area and we will continue to focus on our motto HMS - Connecting Devices .
Halmstad October 22, 2019
Staffan Dahlstr m
Chief Executive Officer
Further information can be obtained from:
CEO Staffan Dahlstr m, telephone +46 (0) 35 17 29 01
CFO Joakim Nideborn, telephone +46 (0) 35 710 69 83
This information is such that HMS Networks AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 14.00 CET on October 22, 2019.
HMS Networks Q3 Report 2019 (English)
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
09/10/2026
September 10 2026, 06:00 (PDT) Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026
New Sports Intelligence helps providers better unders...
08/10/2026
Modern venues have come a long way since the tinny, echoing audio of the mid 20t...
08/10/2026
ESPN's first Super Bowl production will stream in English and Spanish on Disney+, while the ESPN App carries the full slate of game, ManningCast, studio, an...
08/10/2026
From high-school videoboards to War Eagle Productions, the Opelika native is learning how to lead shows and capture big moments
The future of live sports produ...
08/10/2026
The Television Academy and Prime Video have announced a six-year agreement making Prime Video the exclusive global home of the Emmy Awards beginning with the 20...
08/10/2026
Techex will exhibit at NAB Show New York 2026 (Booth 623, Javits Center, October...
08/10/2026
X Games has announced the appointment of Steve Rogers as Chief Operating Officer. Rogers previously served as COO of World Supercross and spent nearly a decade ...
08/10/2026
Fonn Group has appointed Trevor Spielmann as Sales Director for Germany, Austria, and Switzerland. Spielmann joins from EVS, where he held sales and business de...
08/10/2026
The flagship program will originate from major PG events with a four-camera production, live distribution across PGTV, social platforms
Perfect Game is bringin...
08/10/2026
Innovation rarely happens in a vacuum. More often, it happens at the point of collision: when worlds that have run on separate tracks begin to converge. That is...
08/10/2026
For decades, the production and broadcast services business has run on a familia...
08/10/2026
Uplynk, Zixi, BroadView Software, and Grass Valley have published The IP Converg...
08/10/2026
The NFL has announced the return of the Big Data Bowl, the league's analytics competition, now in its ninth year and again powered by AWS. Registration is o...
08/10/2026
Eutelsat has renewed its partnership with T l diffusion d'Alg rie (TDA), Algeria's national broadcasting network operator, for continued distribution of...
08/10/2026
Disney will livestream Super Bowl LXI on February 14, 2027, alongside the game's broadcast on ESPN and ABC. All Disney subscribers in the United States wi...
08/10/2026
RHStv and Red House Streaming have announced an expansion of their partnership w...
08/10/2026
Gray Media has announced a distribution agreement with TEGNA and DAZN to simulca...
08/10/2026
SVG readers can save 10% on registration and receive a complimentary Solutions H...
08/10/2026
PROTON Camera Innovations GmbH has been named a recipient of a 2026 Technology a...
08/10/2026
Industry leaders discuss real-world cloud workflows for live game production, pl...
08/10/2026
The next-gen audio technology joins Dolby Vision as part of Apple TV's immersive F1 experience...
08/10/2026
David France, Jesse Short Bull, Mato Wayuhi, N. Bird Runningwater, Jodi Archambau, Jhane Myers, Paul McGuire, Amber Morning Star Byars, Holly Macarro, Nick Tils...
08/10/2026
Dynamic panning plug-ins get an upgrade
Sound Particles have just announced major updates for two of their popular dynamic panning plug-ins. Energy Panner 2...
08/10/2026
New expandable instrument boasts full DMNO engine
UDO Audio have just announced the upcoming release of a new, expandable synth that packs the power of the ...
08/10/2026
Two new subwoofers added to monitoring line-up
ADAM Audio's monitoring range has just been expanded with two new DSP-equipped subwoofers, the Sub8 PRO a...
08/10/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
08/10/2026
Calrec gives broadcasters freedom of choice at NAB Show New York We're looking forward to meeting up with you all at NAB New York on 21st-22nd October.
Cal...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Globecast, a leading provider of broadcast, media and entertainment managed services, will showcase its next generation of media orchestration services at NAB S...
08/10/2026
Clear-Com played a critical role in the production communications infrastructure for Rock in Rio 2026, one of the world's largest and most recognized music...
08/10/2026
Sohonet Launches ClearView Rush: A Leap Forward in Studio Review, Built for Crea...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Ikegami announces a major expansion to its range of broadcast-quality live production cameras. Scheduled for introduction on Ikegami booth 708 at NAB New York, ...
08/10/2026
Calrec will be located at Booth 444.
Freedom to choose
The media landscape is evolving quickly, and the broadcasters best placed for what comes next will be...
08/10/2026
LiveU has announced that CRD Audiovisuel relied on LiveUs LU900Q intelligent production unit, with built-in native LiveU IQ (LIQ ) connectivity, to deliver live...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Marshall Electronics, a globally recognized provider of high-performance video solutions for broadcast, streaming, AV and professional production, will exhibit ...
08/10/2026
14-hour package also includes A Remarkable Place to Die season 2 as well as libr...
Third quarter 
