January - December 2013
* Net sales for the full year 2013 reached SEK 501 m (382), corresponding to a
31 % increase. The revaluation of the Swedish currency had a negative impact
of SEK 15 m on net sales
* Operating profit reached SEK 87 m (64) - a 36 % increase. Operating margin
was 17 % (17)
* Order intake for the year increased to SEK 516 m (424), corresponding to a
25 % increase in local currencies
* Cash flow from operating activities amounted to SEK 80 m (82)
* Profit after taxes totalled SEK 63 m (52) and the result per share amounted
to SEK 5.54 (4.64)
* The Board of Directors propose a dividend to the amount of SEK 2.25 (2.25)
* During the period, the acquired IXXAT Automation GmbH contributed to net
sales with SEK 103 m. The acquired operation's net contributed to operating
profit with SEK 13 m
Fourth quarter
* Net sales for the fourth quarter reached SEK 126 m (87) corresponding to a
44 % increase and operating result reached SEK 13 m (6)
* Order intake during the fourth quarter was SEK 132 m (100) corresponding to
a 32 % increase
Comments from the CEO
For 2013, we can report a 31 % sales growth in the Group. The positive
development can to a major part be explained by the acquisition of IXXAT
Automation which we acquired during the first quarter of 2013 and also by an
organic growth within the Anybus embedded product line. The increase in volumes
during the second half of the year relates partly to newly introduced custom
developed products increasing in volumes by the end of the year. For 2013 we can
report a SEK 87 m operating profit, the highest in the history of the company
but still with an operating margin just below our goal.
The improved result is supported by our focus on increasing productivity in our
manufacturing process, lowering our purchase prices and a positive contribution
from the acquisition. In total, we can present a gross margin improvement from
60.1 % to 62.6 % which is in line with our expectations that increasing volumes
and integration through technology development will provide gross margins above
60 %.
We can see a mixed picture on the market for HMS products with more stable
conditions on the Japanese and the North American markets. The market in Europe
is still cautious. Our customers are talking about growth but are still hesitant
in their actions.
Our product group Netbiter remains an exciting initiative. We are identified as
a participant in the new "hot" area of "Industrial Internet of Things"
(Industrial IoT) were huge investments are made in future industrial
applications. Despite a lot of interest expressed by our customers for our
products and solutions, there is still a slow development of sales in the short
perspective.
As in previous years, we shipped fewer products in the fourth quarter. However,
the slowdown was not as significant as the previous year. The fourth quarter is
also characterized by high levels of activities in the areas of sales- and
marketing activities. During this period HMS was represented on a number of
different tradeshows. During 2013, we received 146 (119) new design wins
regarding HMS communication solutions. The new technology platforms now released
to the market receives a lot of interest and together with a positive "book to
bill" for the fourth quarter we feel confident going into a new year.
Our focus remains to increase growth through our three product brands Anybus,
Netbiter and IXXAT. Our market is still difficult to predict in the short term
and consequently we continue to balance our long term growth strategy with a
cautious view on expenses. In the long term, we believe that the market for
industrial communication and remote management will be a growth area and that
our long-lasting company tagline "Connecting Devices" represents an interesting
positioning in an expanding market.
Halmstad February 7, 2013
Staffan Dahlström
Chief Executive Officer
Further information can be obtained from: CEO Staffan Dahlström, telephone +46
(0) 35-17 29 01 or CFO Gunnar Högberg, telephone +46 (0) 35-17 29 95. See also:
http://investors.hms.se
HMS Industrial Networks (publ) is the leading independent supplier of products
for industrial communication including remote management. HMS develops and
manufactures solutions for connecting automation devices and systems to
industrial networks under the Netbiter, Anybus and IXXAT brands.
Development and manufacturing take place at the headquarters in Halmstad, Sweden
and in Weingarten, Germany. Local sales and support are handled by branch
offices in China, Denmark, France, Germany, India, Italy, Japan, UK, and USA.
HMS employs over 350 people and reported sales of 57 million EUR in 2013. HMS is
listed on the NASDAQ OMX in Stockholm.
[HUG#1760005]
