HMS Networks: Interim report January - March 2012

Last twelve months * Net sales for the last twelve months totaled to SEK 389 m (360), corresponding to a 11 % increase in local currencies * Operating profit for the last twelve months was SEK 69 m (83), equal to a 17.7 % (23.1) operating margin * Order intake for the twelve month period was SEK 407 m (361) * Cash flow from operating activities for the twelve month period amounted to SEK 55 m (63) * Profit after tax for last twelve months amounted to SEK 52 m (61) and earnings per share was SEK 4.66 (5.36) First quarter * Net sales for the first quarter totaled to SEK 96 m (92) corresponding to a 5 % increase * Operating profit amounted to SEK 14 m (18) * Order intake for the first quarter was SEK 116 m (97) * During the quarter HMS received the largest order in the company's history, SEK 16 m Comments from the CEO The previously communicated market uncertainty persists. On our major markets we see continuing positive signs on the American market. The German market is somewhat reserved and the Japanese market is still uncertain. We see a continuing inflow of design-wins confirming our strong position on the market and the attractiveness of our product offering. However, the effect of these new customers will not materialize (on the income statement) until 2013 and going forward. The demand for customized solutions of the HMS technology is still high and during the first quarter, we received the biggest order in the company's history, amounting to SEK 16 m. The conditions for a continuing long- term growth are unchanged despite the short term uncertainty among our customers. We have noticed that our effort to improve our purchase process and relationship to our suppliers is having effect, resulting in a strong gross margin on product sales. We now strive to reach the full effect of our investment in new resources made during the previous years. Sofar, these investments have resulted in a continuous inflow of design-wins, a more efficient sale and marketing organization, a strengthened Development Department and several new partners adding to the HMS presence on important markets. Halmstad April 18, 2012 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 Networks (publ) is a world-leading supplier of communication technology for industrial automation. Sales for 2011 totaled SEK 384 million. Over 90% of these sales were to customers located outside Sweden. All product development and parts of the manufacturing are performed at the head office in Halmstad. Sales offices are located in Tokyo, Beijing, Karlsruhe, Chicago, Milan, Mulhouse, Pune, Coventry and Copenhagen. HMS has 240 employees and produces network interface cards and Gateways to interconnect different networks under the trademark Anybus® and products for remote management under the trademark Netbiter®. HMS is listed on he Nasdaq OMX Stocholm Small Cap list, in the Information Technology sector. HMS PRM-1Q Report: http://hugin.info/138433/R/1603444/506937.pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: HMS Networks AB via Thomson Reuters ONE [HUG#1603444]