HMS Networks: Year-End Report 2012

January - December 2012 * Net sales for the full year reached SEK 382 m (384), corresponding to a 1 % decrease. The revaluation of the Swedish currency had a minor impact on net sales * Operating profit reached SEK 64 m (72), equal to a 17 % (19) operating margin * Order intake for the year increased to SEK 424 m (388), corresponding to a 10 % increase in local currencies * Cash flow from operating activities amounted to SEK 82 m (46) * Profit after taxes totalled SEK 52 m (54) and result per share amounted to SEK 4.64 (4.84) * The Board of Directors propose a dividend to the amount of SEK 2.25 (2.25) * Net sales and operating result corresponds to levels indicated in the press release issued on January 17, 2013 Fourth quarter * Net sales for the fourth quarter reached SEK 87 m (95) corresponding to a 8 % decrease and operating result reached SEK 6 m (10) * Order intake during the fourth quarter was SEK 100 m (83) Subsequent events * HMS acquires German IXXAT GmbH, a leading supplier of communication technology Comments from the CEO The fourth quarter saw a decreased amount of delivered products which resulted in zero growth during 2012 and a 17 % operating margin - far below our expectations. In spite of the weak short-term market we see an inflow of new design-wins and customer orders which allow us to continue according to our long-term strategy, but with a persisting cost-awareness. The development of new technology platforms within Safety and our new Embedded platform continue according to plan. During the quarter, we have seen a very diversified market with a fairly positive development in North America, while the European market has slowed down. All in all, we meet a cautious market with uncertain conditions and we expect our customers to have a conservative approach until the market conditions stabilize. Our new generation of Anybus CompactCom (in Chip, Brick and Module format) has been received positively by the market and in 2013, we will focus on securing design-wins for this new product platform. In the beginning of 2013, HMS acquired German IXXAT GmbH, with a turnover of EUR 14 m and 85 employees. IXXAT's hi-tech products and services are great supplements to HMS's operations. Their strong position on the important German market will reinforce HMS's presence on the world's leading market for industrial communication solutions. IXXAT is world-leading when it comes to CAN-based communication technology and they operate within business segments which will be important for HMS's future business. We also see great opportunities for synergies when it comes to development of new technology platforms, manufacturing and logistics. Through this acquisition, HMS employs 350 employees and has a turnover of SEK 500 m. We have become more powerful and we have further established our world- leading position within industrial communication. We will continue to focus on growth for our three brands Anybus, Netbiter and IXXAT. Our market is still uncertain in the short term, which makes it important to continually balance our long-term strategy for growth with a cautious approach when it comes to costs. In the long run, we expect the market for industrial communication and remote management to grow. 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: HMS Networks (publ) is a world-leading supplier of communication technology for industrial automation. Sales for 2012 totaled SEK 382 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 250 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 the Nasdaq OMX Stocholm Small Cap list, in the Information Technology sector. Year End Report 2012: 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#1676169]