HMS Networks: Interim report 2016, January - September

ID: 1465933
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(Thomson Reuters ONE) -


First nine months
* Net sales for the first nine months increased with 30 % reaching SEK 687 m
(527), corresponding to a 30 % increase in local currencies
* Operating profit reached SEK 110 m (87), equal to a 16 % (17) operating
margin
* Order intake for the first nine months increased with SEK 174 m to 698 m
(524) corresponding to a 32 % increase in local currencies
* Cash flow from ongoing operations reached SEK 119 m (72)
* Net result after tax amounted to SEK 75 m (57) and result per share amounted
to SEK 6.44 (5.01)
* Net sales for the last twelve months amounted to SEK 862 m (683)
corresponding to a 25 % increase in local currencies
* Operating result for the last twelve months amounted to SEK 124 m (105)
corresponding to a 15 % (15) operating margin

Third quarter
* Net sales for the third quarter reached SEK 254 m (180) corresponding to a
41 % increase
* Operating result reached SEK 55 m (31) corresponding to a 21 % (17)
operating margin
* Order intake during the third quarter was SEK 252 m (180)

Comment from the CEO
During the third quarter we reached new record levels both in net sales and
profitability. The growth in net sales is due to a combination of organic growth
and the contribution from the two acquisitions made in 2016. Adjusted for
currency effects, the growth in net sales during the quarter was 39 % of which
11 % originated from organic growth in our core business.

A strong development in our base business and a positive contribution from the
acquired companies strengthened our gross margin. Together with a lower level of
activities in the third quarter due to the vacation period takes HMS to a new
record level of SEK 55 m in operating result. This operating margin reached 21%
for the third quarter of the year.


Net sales of SEK 254 m and an operating result of SEK 55 m for the quarter means
that we financially takes a substantial step forward in line with our growth
strategy.

Sales in Central Europe continues to develop well. Great Britain reached new
record levels despite uncertainties around Brexit. The growth in Great Britain
is driven by long-term projects now materializing in deliveries to customers. We
can see a recovery in North America. This recovery is partly boosted by a strong
US currency improving our reported figures. Our sales in Asia lead by Japan and
China shows good development despite uncertainties related to the strengthened
Japanese currency creating challenges for our customers in their export
business. We see a weak growth on our Nordic markets - to some extent due to
good performance during the comparable period last year.

Our ongoing efforts with the acquired companies eWON and Intesis continues. The
plan is primarily to let the companies focus on the development of their success
factors and in the long term integrate them into the HMS operations. In the case
of eWON we continue to create synergies in the sales organization and the
Netbiter product line has now become a part of the eWON product offer. This
gives us the most complete product offer in the market for industrial remote
monitoring and communication which we now define as "Remote Solutions".

Anybus Wireless Bolt was launched during the third quarter. With Anybus Wireless
Bolt it is easy to connect data from industrial machines to different IT
systems, something that attracts a lot of interest in the market from IT
companies looking to expand their offer to the market with the HMS technology.

The interest in Industrial Internet of Things (IIoT) comes not only from our
traditional customer base but also from new customer groups trying to gather
information from industrial applications to their IT systems. During the quarter
HMS completed a road show in eight different places in Europe and the USA to
show that our solutions already today can be used for new IIoT applications.
Hundreds of customers attended and we can notice a great interest in our
solutions. We have also performed a series of Cyber security (digital security)
seminars on the German market showing how our future products offer an increased
IT protection for industrial applications. An area we see as an additional
possibility for growth in HMS.

We assume a cautious approach to the market development and we consider the
conditions for a long-term growth as positive.

Our focus remains to grow our three product brands Anybus, IXXAT and eWON and in
the market segment Building Automation in the recently acquired Intesis. We
continue to balance our long-term growth strategy with a restrictive approach to
expenses and new resources. In the long term, we consider the market for
industrial data communication and remote monitoring to be interesting growth
areas and we continue to focus on our motto "Connecting devices".


Halmstad October 26, 2016

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. www.hms-
networks-com/ir

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 07.50
CET on October 26, 2016.

HMS Networks AB (publ) is the leading independent supplier of products for
industrial communication and remote management. Reported sales reached SEK 702 m
in 2015. Development and manufacturing take place at the headquarter in
Halmstad, Sweden, in Nivelles Belgium, in Igualada, Spain and in Weingarten,
Germany. Local sales and support are handled by branch offices in China,
Denmark, France, Belgium, Germany, Spain, India, Italy, Japan, UK, and USA. HMS
employs over 480 people and develops and manufactures solutions for connecting
automation devices and systems to industrial networks under the Anybus®, IXXAT®
and Intesis® brand and products for remote management and control under the
eWON® brand. HMS is listed on the NASDAQ OMX in Stockholm, category Mid Cap,
Information Technology.

Q3 Report 2016:
http://hugin.info/138433/R/2051395/767543.pdf



This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: HMS Networks AB via GlobeNewswire






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Date: 10/26/2016 - 01:50
Language: English
News-ID 1465933
Character count: 2327
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Firma: HMS Networks AB
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