22/04/2015 - JANUARY – MARCH 2015
· Net sales for the quarter amounted to SEK 54.3m, compared with SEK 14.5m in the same period last year
· Order intake amounted to SEK 43.2m (13.5)
· Operating income amounted to SEK 17.2m (-5.0), corresponding to an operating margin of 31.6 percent (Neg)
· Profit after tax for the quarter was SEK 13.5m (-5.0)
· Earnings per share before and after dilution amounted to SEK 0.02 (-0.01)
· Cash flow from operating activities amounted to SEK 19.9m (6.4)
CEO COMMENTARY: SWEDISH TRANSPORT ADMINISTRATION AND THE MIDDLE EAST IN BALANCE DURING THE QUARTER
Net sales increased in the first quarter compared with Q1 2014, amounting to SEK 54.3m, and were consistent with the strong net sales in the fourth quarter of 2014. The Swedish Transport Administration accounted for half of net sales, while the Middle East accounted for most other net sales. Operating income for the quarter amounted to SEK 17.2m, compared with SEK -5.0m in the same period last year, corresponding to an operating margin of 31.6 percent.
The gross margin for the quarter amounted to 54.8 percent, which is a significant improvement on 37.9 percent for the same period in 2014. However, the gross margin also saw something of a sequential deterioration compared with Q4 2014, when it amounted to 59.5 percent. This is because the margin is no longer being supported by the underlying order from the Swedish Transport Administration, which is being recorded using the percentage of completion method.
The deal with the Swedish Transport Administration continues apace, with replacements and new installations in parallel with ongoing maintenance. An order to a value of SEK 5m was received during the quarter for extended delivery content for the service organisation in connection with new installations during the current year. Order intake from the Middle East continued to show healthy growth during the first quarter of the year, with the region accounting for SEK 31.2m of total order intake of SEK 43.2m. In the light of the high number of procurement contracts in this increasingly mature market for traffic safety systems, during this quarter Sensys will be opening an office in Dubai in order to reinforce relations with customers in the region and thus increase the probability of positive outcomes in future procurement processes.
We are continuing to target the railway market with our pantograph monitoring systems on trains (APMS), and we are seeing continued interest in our products. During the quarter we continued our partnership with the Finnish Transport Agency.
Our objective is to continue to outpace the market in terms of international growth. Competitive products, an established delivery and service organisation, effective customer relationships, strong reference projects and in particular, a stable financial position, all combine to give Sensys excellent opportunities for continued organic growth. The regional markets are fragmented, with high entry barriers, which is why we are also continuing to examine opportunities to grow via acquisitions, and this resulted in increased expenses of SEK 1.5m during the period.
During Q1 it was announced that I will be stepping down as CEO on 18 May 2015, to be replaced by Torbjörn Sandberg, current CEO of NetAdmin Systems AB and also a Board member of Sensys since 2012. In future I will be working on a number of Sensys’ strategic growth projects. I would like to take this opportunity to extend my sincere thanks to Sensys’ customers, personnel, partners, suppliers, shareholders and Board for their support and the tremendous backing I have enjoyed in my years as CEO, thank you to you all!
Johan Frilund, CEO
Invitation to presentation for press and analysts
On 22 April at 09:30, CEO Johan Frilund will present the report and respond to questions in an audiocast. The presentation can be followed online via the link on Sensys’ website: www.sensys.se. You can also listen to the presentation and ask questions over the telephone, using the following numbers:
Sweden: +46 (0)8-5052 0114
USA: +1 334 323 6203
UK: +44 (0)207 1620 177
Please call 10 minutes prior to the specified time.
This information is such that Sensys Traffic AB (publ) is required to publish in accordance with the Securities Market Act and/or the Swedish Financial instruments Act. This information was submitted for publication on 22 April 2015 at 08:30.
For further information, please contact:
Johan Frilund, CEO
Mobile: +46 (0)73-274 28 23
Sensys Traffic is a leading supplier of traffic enforcement systems. Sensys develops, markets and sells systems that are mainly used for speed enforcement and red-light enforcement. The company also provides servicing and maintenance alongside sales of systems. Sensys Traffic’s end customers are primarily police and road authorities throughout the world, as well as private operators. The company sells direct to customers, or via partners, agents and distributors. Sensys Traffic is headquartered in Jönköping and its shares are listed on Nasdaq OMX Stockholm. The company has 41 employees and its sales in 2014 totalled SEK 160.6 million.
For further information, visit www.sensys.se