HMS Networks: Interim report January - March 2014

Last twelve months * Net sales for the last twelve months totaled to SEK 533 m (393), corresponding to a 37 % increase in local currencies * Operating profit for the last twelve months was SEK 94 m (63), equal to a 18 % (16) operating margin * Order intake for the twelve month period was SEK 564 m (427) * Cash flow from operating activities for the twelve month period amounted to SEK 83 m (90) * Profit after tax for last twelve months amounted to SEK 68 m (51) and earnings per share was SEK 5.99 (4.52) First quarter * Net sales for the first quarter totaled to SEK 139 m (107) corresponding to a 27 % increase in local currencies * Operating profit was SEK 22 m (14) * Order intake for the first quarter was SEK 167 m (119) Comments from the CEO After the first quarter of 2014 we can see positive signs in a number of areas: Stronger underlying demand on our most important markets, good performance from the acquisition of the IXXAT operations and increasing volumes from recent design-wins. With this we can report an organic growth around our targeted 20% and an acquired growth, as IXXAT was included in the consolidated accounts as of February 1st, 2013, all together this result in a 30% growth compared to the same period the previous year. Order intake reached record levels at 167 MSEK during the first quarter. We continue the investment in product development from previous years but since the core technology development at present are close to completion we change the direction to broadening the product offer based on the new technology platforms now in place. The quarter was characterized by several major product releases. We have launched the five most important protocols within the new CBM family (Anybus Embedded) and we have already received some important design-wins. Our investment in Remote Management (Netbiter) continues and we see good opportunities for the new technology platform and the new functionality to increase sales in this product group. We are also starting to deliver the new Remote Access application for the Netbiter products, something we think will increase the market potential within the HMS main market - Factory Automation. In the short term our customers are cautiously optimistic and we consider the conditions for a continuing long term growth as positive. During this year our goal is to increase the effect from the opportunities we see in the acquired operation as well as from the investments in expanded resources during the recent years. Our focus is to drive growth within our three main product brands Anybus, Netbiter and IXXAT. We continue our effort to balance our long term growth strategy with a conscious view on expenses and new resources. In the long term we consider the market for industrial data communication and remote management to be interesting growth areas and we continue to focus around our motto - Connecting Devices. Halmstad April 24, 2014 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 Industrial Networks 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 58 million EUR in 2012. HMS is listed on the NASDAQ OMX in Stockholm. Q1 Report 2014: This announcement is distributed by GlobeNewswire on behalf of GlobeNewswire 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 GlobeNewswire [HUG#1779476]